December 2006 Dateline: NH

December, 2006
Dateline: NH
a publication of the New Hampshire Automobile Dealers Association
Meet Your Partners
Many, Many Different Faces
(See pages 4, 6, 11, 14, 17, and 20)
Daniel B. McLeod
Inside this Issue
OBD II Goes Live!
page 2
Retail Seller’s License Renewals
page 3
Important Information
Regarding Dealer Databases
page 4
How to Reduce Expenses
page 6
“Alphabet Soup” Health Plans
page 8
2007 Fuel Economy Guides
page 11
From the NHAEF
pages 12-13
Environmental Corner
page 13
T
he next time someone asks me, “How’s it going,” my reply will be,
“Same day, many, many different faces!”
The Democrat landslide on November 7 gave Democrats historic political
victories in New Hampshire and nationally. Political unknown Carol
Shea-Porter came from behind and defeated two-term incumbent Jeb Bradley.
Paul Hodes overcame a 20-point loss in 2004 to a 7-point victory over veteran
Charlie Bass. The national elections vaulted the Democrats to a majority in the
U.S. House of Representatives and a 1-vote majority, 51-49, in the U.S. Senate.
Governor John Lynch was reelected to a second term with an astonishing
74 percent majority. The Executive Council now has a 3-2 Democrat majority,
which certainly implies Governor Lynch will be able to select his own
candidates for his many Executive Department appointments. The State
Senate now has a clear 14-10 Democrat majority.
The biggest surprise was the complete annihilation of the Republicans in the
New Hampshire House. Get this – there are a total of 23 new Republicans that
were elected; but the Democrats, due to a lot of hard work early, elected 114
new Democrats! In effect, the numbers in the House flip-flopped on
November 7 to a 236-164 Democrat majority.
Elections - Continued on page 3
Compliance Corner
page 17
From Your NADA Director
page 18
Claims Corner
page 20
“Negative Equity”
page 22
Happy
Holidays
from the
NHADA staff
www.nhada.com
Dateline: NH
a publication of the New Hampshire Automobile Dealers Association
2006-2007 NHADA OFFICERS
Chairwoman
Susan McFarland Moynahan
Vice Chairman
Robert Grappone
Second Vice Chairman
Scott Holloway
Treasurer
Holly Carlson
Secretary
Donna Hosmer
President
Daniel B. McLeod
OBD II Goes Live!
A
If the vehicle does pass safety inspection but fails the OBD II test,
the customer has a 60-day repair period from the date of the
inspection. Only the “number” portion of the sticker is applied
to the windshield. Gordon-Darby will not charge for a retest.
2006-2007 NHADA DIRECTORS
Jay Alosa, Heavy-Duty Trucks
Frank Brady
Andy Costello
Kevin Donovan
Paul Gladstone
Robert Grappone
Mark Hesler, Motorcycles
Paul Holloway, Honorary
Scott Holloway
Kevin Kopp
Rich Lovering, Immediate Past Chairman
Susan McFarland Moynahan
Larry Phillips, Non-Franchised
Peggy Proko
NADA DIRECTOR
Jack Tulley
Also, make certain all Vehicle Inspection Reports (VIR) are signed
by the technician and given to the customer.
The “advisory” period will continue for 1996-2001 motor vehicles.
NHADA will keep you informed.
New Members
Sabet Family Inc.
dba Wally’s Auto World
All America Dealer Development, LLC
dba All America Auto Sales
134 Plaistow Road
Plaistow, NH 03865
Owner: Wally Sabet
195 Central Street
Hudson, NH 03051
Owner: Robert Fredette
C & C Cars
This publication is designed to provide accurate
and authoritative information in regard to the
subject matters covered. In publishing this
newsletter, neither the authors nor the publisher are
engaged in rendering legal, accounting, or other
professional services. If legal advice or other expert
assistance is required, the services of a competent
professional should be sought.
Advertisements appearing in
Dateline: NH do not indicate
a specific endorsement by NHADA
of the products or services unless
the NHADA endorsement symbol
appears with the advertisement.
427 North Main Street
Franklin, NH 03235
Owner: John D. Perry
NHAEF Center for Automotive Education and Training
Endorsed by
NHADA
Published monthly at Bow, New Hampshire,
by the New Hampshire Automobile Dealers
Association. Mailing address: P. O. Box 2337,
Concord, NH 03302-2337, 603-224-2369/
800-852-3372.
Publisher
Editorial Director
Managing Editor/
Design and Layout
Typographers
s of December 1, all 2002 and newer motor vehicles that
fail the OBD II test must be corrected in order for the
vehicles to be inspected.
STAFF
Susan McFarland Moynahan
Daniel B. McLeod
Louanne Theriault
Louanne Theriault,
Donna Sopper, Lisa Lavoie
Advertising Coordinator
Lisa Lavoie
Photographer
Michael Rosenblum
ADVERTISING RATES - Effective 1/1/07
Full Page:
Color $650
B&W $525
1/2 Page:
Color $400
B&W $325
1/3 Page:
Color $325
B&W $250
1/6 Page:
Color $250
B&W $200
Upcoming Seminars – REGISTER ON-LINE (www.nhada.com)
December 6
December 13
December 13
December 14
January 9
January 24
February 14
March 21
April 18
May 16
Small Quantity Generator (SQG) of Hazardous Waste Certification Training
(Rockingham and Strafford Counties)
Insights Into Wage and Hour Issues (HR Seminar Series) – a.m.
Strategic Hiring Guidelines – free seminar in afternoon for those wishing to learn
more about the Hiring Guidelines program. Lunch will be served between seminars.
Federal Regulatory Compliance – Paul Metry, NADA
Internet Marketing & Purchasing
Performance Evaluations (HR Seminar Series)
Disciplining and Terminating Employees (HR Seminar Series)
Workplace Harassment (HR Seminar Series)
Company Policies and Employee Handbooks (HR Seminar Series)
HR Leadership and Series Wrap-up (HR Seminar Series)
Please contact Brendan Perry or Jean Conlon at 800-852-3372 if you have questions.
www.nhada.com
page 2
December, 2006
Dateline: NH
a publication of the New Hampshire Automobile Dealers Association
Elections - Continued from page 1
If the Democrats had not organized in the spring and worked to find Democrat
candidates in each city and town in New Hampshire, they would not have had
Democrats on the November ballot when the “perfect storm” hit the Republicans.
How will the new Democrat majority in Concord impact members of NHADA?
From what I am hearing, the Democrats will not attempt to bring about
monumental change. The ball is now in their court, and they will have to deal
with education funding and create a balanced State operating budget. They will
move forward with moderate political gains in an attempt to demonstrate to the
citizens of New Hampshire that they know how to govern … and get reelected!
I do not presume to know the Democrat agenda; but, just in case there is a
legislative threat, such as a revision/increase in business taxes (no elected
official has vowed to vote against a new or increased business tax), all members
of NHADA must pay close attention to the information that we will provide
throughout the Session.
My job representing the interests of NHADA members has not changed. The
only difference is that there are many new faces that will translate into new
Chairs of Committees and a new leadership in both Houses. I must again work
hard and gain the confidence and trust of the new majority. On the positive
side, we have never been an organization that supports one party or another.
Your in-state PAC, ADPAC, contributed more than one-third of donations this
election cycle to Democrats. We are “political party blind.” We have made a
Retail Seller’s
License Renewal
Due by December 31
The deadline for NHADA members to
submit their Retail Seller’s License
applications, along with the renewal
fee of $50, is December 31. Any
person renewing after January 1
will be required to complete a new
23-page application.
The renewal application will ask a
series of yes and no questions in
order to confirm whether any
changes have occurred during the
last 12 months.
Don’t delay – renew today!
habit out of supporting the elected
officials that support us. It is that
simple, and we will continue this
simple philosophy.
-ORE"UYERSs-ORE3ELLERS
%XPANDED3ERVICES
%VERY7EDNESDAY
#ONTACT4OM-UNSONAT
%AST7INDSOR#4sWWWSAACOMs%STABLISHED
December, 2006
page 3
Dateline: NH
a publication of the New Hampshire Automobile Dealers Association
Editor’s Note: The following is important information I just received via e-mail from NADA regarding
“Access to Dealers’ Computer Data – Customer Service Records.”
TO:
ATAEs
FROM:
Jim Moors and Bill Price
DATE:
November 10, 2006
RE:
Access to Dealers’ Computer
Data – Customer Service
Records
It has come to NADA’s attention that
Carfax is soliciting dealers or perhaps
their service managers to obtain
authorization to participate in a
program that would authorize the
company to access a dealer’s customer
service records. The authorization
would permit Carfax to access a
dealer’s Dealer Management System
(DMS) and extract service repair
Meet
information. Apparently, Carfax
intends to use this information in its
vehicle history reports. In exchange
for providing this information,
dealers would receive advertising and
other benefits from Carfax.
In an earlier memo from Ted Smith,
you received additional information
about the Carfax program as it was
presented to a dealer in Florida. I’m
not sure if this program is being
marketed nationwide.
NADA recommends that you alert
dealers to this program. It is
important that dealers review it
carefully. Access to dealer data and its
use by third parties have been issues
JobsInNH.com
~ Bronze ~
Your Partners
Erin Kroll
page 4
JobsInNH.com is New Hampshire’s real
source for local, qualified candidates. A
significant percentage of job seekers
visiting their site are passive job seekers.
These are quality employees who are
currently working but keeping an eye on
the market for more challenging career
opportunities. Ambitious and proactive;
they are candidates that JobsInNH.com
helps their customers reach. Special
discounts are available for NHADA
members. For more information, please
contact Erin Kroll at 877-374-1088,
ext. 2006, or by e-mail at
ekroll@JobsInTheUS.com.
of concern. If customer information is
involved, federal and state privacy
laws must be complied with. In its
materials, Carfax suggests that its
program complies with applicable
federal and state laws. With respect to
the data it is seeking here, Carfax
states that no “personal information
is used.” Nevertheless, dealers should
note that they are also being asked to
agree to waive and release any claims
against Carfax relating to the use of
the inventory and service records or
the Service Link program.
Obviously, each dealer needs to make
an independent decision about
whether or not to participate in this
program. Information about a
vehicle’s history is important to
dealers and consumers. However,
dealers need to be vigilant in
reviewing agreements that provide
third parties access to information in
their DMS. Therefore, if dealers have
any questions about this program,
they should contact their professional
advisors.
Dealers should also make sure that
they have a policy in place that
makes clear which officers or
employees at the dealership have the
authority to enter into agreements
that allow access to dealership
information.
Substance abusers are
33 percent less
productive and cost
their employers an
average of $7,000
annually (SBA)
December, 2006
Dateline: NH
a publication of the New Hampshire Automobile Dealers Association
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December, 2006
page 5
Dateline: NH
“How to Reduce
Expenses –
Real Money”
Daniel B. McLeod
T
here are times when I am
amazed that some dealers
close their eyes and let dollars
blow out the window – hard-earned
dollars that are used to purchase
business forms and specialty items
from companies at a greater cost to
the dealer in which there is no return
for the dealer. As a matter of fact, in
a recent discussion I had with a group
of dealers, a dealer was surprised to
learn that one of their employees
personally benefited from purchasing
arrangements that actually cost the
dealer!
Times are tough, and dealers must be
looking to reduce expenses. NHAD
Services – Products Division can help.
I strongly suggest that if you are not
purchasing business forms and
specialty items from NHAD Services,
you may very well be letting your
page 6
a publication of the New Hampshire Automobile Dealers Association
Meet
Your Partners
New England Dodge
Dealers Advertising
Association
~ Platinum~
The New England Dodge
Dealers Advertising
Association thanks the
New Hampshire Dodge
dealers for their support
and is proud to be a
sponsor of the New
Hampshire Automobile
Dealers Association and
the New Hampshire
Automotive Education
Foundation.
hard-earned dollars fly out the window. Simply allow us to give you a quote.
Give Ron McDaniel or Brian Duplessis a call at 800-852-3372, and I am sure
we can be of assistance … I guarantee it!
December, 2006
Dateline: NH
December, 2006
a publication of the New Hampshire Automobile Dealers Association
page 7
Dateline: NH
a publication of the New Hampshire Automobile Dealers Association
Spelling Out “Alphabet Soup” Health Plans
Laurie Churchill, NHADA Account Manager
Anthem Blue Cross and Blue Shield
A
s NHADA members, you are
in an industry that is cyclical
in nature. I know you are
concerned about health-care costs
that continue to rise and possibly
having to cut more and more benefits
out of employees’ health insurance
benefits programs in order to be able
to offer affordable health-plan
options to your employees.
It may seem like there is nothing you,
as an employer, can do to break the
cycle. Sometimes, short-term fixes
often cost more in the long run.
Instead, we need to focus our energy
on long-term solutions with programs
that should support and protect longterm investment in your employees.
The impact of employee health is farreaching and includes total benefit
costs, productivity, employee morale,
as well as corporate results.
More and more employers are
embracing consumer-driven health
care. Consumer-driven health plans
(CDHPs) manage costs by giving
consumers more control over their
health-care dollars. These types of
plans are designed to empower your
employees to be more informed about
their health and their health-care
options. CDHPs can help employees
save money for future health expenses
as well as give your employees
incentives and the support they need
to make healthy lifestyle changes.
Health-care consumers today are
passive and can be insulated from the
real costs of health care. They
generally don’t question
recommendations made by their
page 8
doctors regarding things like the costs
between generic and brand
prescriptions or alternative
procedures. An engaged consumer
will understand his or her health
status and may demonstrate
better health behaviors, such as
knowing recommended
preventive exams and knowing his
or her “numbers,” such as lipids,
blood pressure, and Body Mass Index
(BMI). They will complete an annual
health assessment and tend to eat a
healthier diet and exercise. They will
understand drug interactions, shop
for providers based on quality and
cost data, and become a smart
health-care buyer.
All of this is good for your employees,
but it will be good for you, too. If you
improve the health of your
employees, you can improve the
financial health of your organization –
now and over the long term.
NHADA is offering consumer-driven
health plans through your
partnership with Anthem. Anthem’s
Lumenos plans offer more of what
makes consumer-driven health work.
Plan features include 100 percent
coverage for preventive care, a health
account to help pay for medical
expenses, incentives for doing things
to improve health, traditional
Preferred Blue (PPO) health coverage,
and an opportunity for tax savings.
Whether you are ready for a full
consumer-driven health plan like a
Health Savings Account (HSA) or
wish to offer your employees a plan
that introduces consumerism,
NHADA offers these options within
our menu of benefit plans.
• The Lumenos Health Incentive
Account (HIA) Plus Plan gives your
employees an account, called a
Health Incentive Account, in which
Anthem allocates funds for them to
use for their medical care, including
prescriptions. It also includes a
traditional health coverage (PPO)
component, which helps protect your
employees against large health
expenses.
• The Lumenos Health Savings
Account (HSA) offers maximum cost
effectiveness. It gives your employees
an account, called a Health Savings
Account, which they can use to pay
for their medical care and
prescriptions. The HSA is funded by
employees’ pre-tax contributions, and
you can also choose to make employer
contributions. It also includes a
traditional health coverage (PPO)
component to help protect your
employees against large health
expenses.
Both plans offer integrated financial
incentives to encourage positive
Plans - Continued on page 10
December, 2006
Dateline: NH
December, 2006
a publication of the New Hampshire Automobile Dealers Association
page 9
Dateline: NH
a publication of the New Hampshire Automobile Dealers Association
Plans - Continued from page 8
health behaviors for things like completing an on-line health assessment,
enrolling in a personal health coach program, completing a smoking cessation
program, or completing a weight management program.
We know you are concerned about costs, and rightfully so. Over the long term,
the best way to get control of costs is to get more from each health-care dollar,
and that is what these new plans are designed to do – by educating,
empowering, and motivating health-care consumers to take better care of
their health.
Whether you are interested in maintaining your current type of health-care
coverage or you are ready to engage in consumer-driven health care, NHADA’s
medical plan offerings will fit your needs for 2007. Please contact Susan
Manning for more details at 800-852-3372 or at smanning@nhada.com.
2006 Unemployment Rates
by Area
Jul Aug Sep
United States
New England
Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
5.0%
4.6%
4.6%
4.4%
4.8%
3.4%
5.7%
3.2%
4.6%
4.4%
4.4%
3.9%
4.7%
3.4%
5.5%
3.1%
4.4%
4.5%
4.5%
4.1%
5.0%
3.0%
4.5%
3.3%
*** SAVE THE DATES ***
2007 NHADA “Family” Convention
Submit Your Census Now!
NHADA’s 2007 group benefit rates will be available soon. Be among the first to
obtain rates for your business and compare them to your current benefit package!
•
Several HMOs, PPOs, and New England plans available through Anthem.
A Health Savings Account (HSA) and a Health Incentive Account (HIA) have
been added to this year’s package (see related article beginning on page 8).
•
Four Dental plans through Northeast Delta Dental.
•
Term life insurance and short-term disability options through Anthem Life.
•
Vision coverage through Vision Service Plan.
For details and census requirements, contact Susan Manning at
smanning@nhada.com or at 800-852-3372.
page 10
June 24-26
Newport Marriott
Newport, Rhode Island
2007 NHADA Fall Business
Meeting & Partner Expo
November 14
Grappone Conference Center
Concord, New Hampshire
2008 NHADA Summer Symposium
June 29-30
Wentworth by the Sea
New Castle, New Hampshire
December, 2006
Dateline: NH
2007 Fuel Economy
Guides Available
F
ederal regulations require
dealers to display an
Environmental Protection
Agency (EPA)/Department of Energy
(DOE) Fuel Economy Guide that
corresponds with each new-vehicle
model year available for sale at your
dealership. (If you have 2006 and
2007 models in your new-car
inventory, you must have the 2006
and 2007 Guides available.)
Because dealers must make copies of
the Guide available, free of charge, to
customers who request copies, please
instruct your sales staff to download
copies from www.fueleconomy.gov/
feg/feg2007.pdf as needed.
Dealers for whom the agencies have
an e-mail address on file will receive
an electronic version of the 2007
Guide automatically. Dealers can send
their e-mail address to
fueleconomy@ornl.gov to get an
updated electronic copy of the Guide
each year.
December, 2006
a publication of the New Hampshire Automobile Dealers Association
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revenue with their unique, targeted Enow!
E-mail marketing campaigns for all
departments in your dealership.
David Miller
For more information, feel
free to contact David Miller at
demiller@autorevenue.com
or at 508-259-3400.
If you have any questions, please feel free to contact NHADA’s Environmental
Specialist Dan Bennett at dbennett@nhada.com or at 800-852-3372; or you
may e-mail regulatoryaffairs@nada.org or call 703-821-7040.
page 11
Dateline: NH
From the NHAEF
a publication of the New Hampshire Automobile Dealers Association
Automotive Technology Education
and Career Expo
O
n October 25, the New
Hampshire Automotive
Education Foundation
teamed with the New Hampshire
Community Technical Colleges to
sponsor an interactive Automotive
Technology Education and Career
Expo at the Manchester Armory for
high school students interested in
pursuing careers in the automotive
industry.
More than 800 students from 23 secondary schools attended the Expo, which included college booths,
the latest car models, sports cars, race cars, tool companies, scholarship opportunities, contests, and
interactive games and activities.
Salem High School Automotive Technology instructor Barry
Rogers discussed the Honda PACT program with NHCTCNashua instructor Dan Jones.
The students loved checking out the vehicles loaned by NHADA members, the
Sports Car Club of America, the Premier Car Club, and Greg Biffle! Hopefully,
many of these students will “take the ride of their lives” and pursue careers in the
automotive industry.
The “NASCAR-style” tire-changing contest, sponsored by
Tire Warehouse, was popular with participants and
onlookers.
Automotive Technology
Scholarships
www.nhada.com
Click on “Scholarship Opportunities”
For additional information, contact
Brendan Perry or Jean Conlon at
800-852-3372 or at bperry@nhada.com
or jconlon@nhada.com.
page 12
December, 2006
Dateline: NH
a publication of the New Hampshire Automobile Dealers Association
Appreciating High School Auto Instructors
E
ach year, the New Hampshire Automotive Education Foundation
(NHAEF) sponsors training for New Hampshire’s high school
Automotive Technology instructors. This year, a record 24 teachers
took advantage of the two-day training at NHCTC-Nashua’s Honda PACT
program.
The NHAEF Board of Directors voted to give jackets at an Appreciation
Dinner to the instructors in the ten New Hampshire schools that have achieved
NATEF certification in appreciation of their efforts. The four schools that also
received AYES certification received the extra logo on their jackets in honor of
that achievement.
At the Appreciation Dinner honoring the Automotive Technology instructors, Nashua dealers
Peggy Proko (L) and Mark Tulley (R) thanked Pat Tully and Bob Babikian, instructors at
Nashua High School North, the latest New Hampshire school to receive NATEF certification.
Environmental Corner
Environmental
Compliance:
Are You In It?
Dan Bennett, NHADA Environmental Specialist
T
he regulatory burden required
to run a motor vehicle facility
these days has become almost
unmanageable. When one considers
the various regulatory agencies (such
as the Department of Environmental
Services, the Department of Labor,
the Federal Trade Commission, the
Insurance Department, the Banking
Department, the Department of
Safety, and the Division of Motor
Vehicles) governing our operations
and the multitudes of varying rules
and regulations that go along with
these agencies, it seems at times
impossible to just conduct business as
usual. Dealing with compliance issues
becomes an overwhelmingly full-time
position and responsibility.
As a result, dealers, managers, and
owners have become responsible for
being an expert in all the above
arenas as well. They wind up wearing
“Many Hats.”
NHADA and its Board of Directors
feel that compliance assistance is both
necessary and a tremendous value to
membership in our Association.
NHAEF Executive Director Brendan Perry (L) and AYES Affiliate George Dykstra (R) present
jackets showcasing the NHADA, AYES, and NATEF logos to Barry Rogers and Steve Ring of
Salem High School as a token of appreciation.
December, 2006
It is with that in mind that NHADA
offers to all Association members
assistance with environmental
compliance through our facility audit
process. The inspection process is both
free and confidential. It is designed to
assist you in achieving compliance
Compliance - Continued on page 14
page 13
Dateline: NH
Meet
a publication of the New Hampshire Automobile Dealers Association
G W Marketing Services
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Gordon Wisbach
Gordon Wisbach is well known to New
Hampshire dealers as New England’s premier
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dealership businesses, perform business
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disputes, perform “expert witness” services,
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e-mail him at gwms2000@aol.com “to see
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Compliance - Continued from page 13
with all state and federal
environmental regulations in as easy,
effective, and cost efficient a manner
as possible.
To date, a number of facilities have
undergone and actively participate in
the environmental compliance audit
program. To go along with those who
have, there are an equal, if not
greater, number of folks who have
not. The program takes all the
compliance guessing and work out of
your hands and allows NHADA’s
Environmental Specialist to serve as
the expert auditing your facility. It
makes your job and legal requirement
of achieving environmental
compliance a real “no-brainer.”
Signing up or requesting an
environmental audit is an easy
process. It can be done through the
“Request a Visit” link under the
“Environmental” tab at
www.nhada.com or by e-mailing me
at dbennett@nhada.com or by calling
NHADA at 800-852-3372.
If you have any questions regarding
the inspection process, any
environmental-related matter, or a
compliance issue at your facility,
please feel free to contact me using
the information provided above. I
look forward to working with you
and the employees at your facility in
making a more environmentally
compliant, beneficial, and safer
workplace.
Strategic Hiring Guidelines Program Available
NHADA now has a comprehensive written hiring program available to members which
includes: hiring guidelines, sample interview questions, job applications, FAQs, and a
comprehensive list of participating occupational health centers for pre-placement
physicals and drug screenings. In addition, a member of the NHADA staff will provide
valuable assistance to any NHADA member interested in implementing this program.
For more information, please call Brian Duplessis or Ryan Hale at 800-852-3372 or
contact them by e-mail at bduplessis@nhada.com or rhale@nhada.com, respectively.
page 14
Substance abusers are
60 percent more likely
to file a Workers’
Compensation Claim
(NCCI)
December, 2006
Dateline: NH
a publication of the New Hampshire Automobile Dealers Association
www.aane.com
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December, 2006
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Dealer Relations
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Donna Olsen
Dealer Registration
Kristin Blanchette
• Transportation • Full Recondition • Service Dept. • Guaranteed Checks and Titles
page 15
Dateline: NH
page 16
a publication of the New Hampshire Automobile Dealers Association
December, 2006
Dateline: NH
a publication of the New Hampshire Automobile Dealers Association
“Shivery Is Not Dead”
Compliance Corner
– Farmers’ Almanac –
Pat Austin, NHADA WCT Loss Prevention Consultant
N
ew England is in store for
unseasonably cold conditions,
along with snow and lots of
it, according to the Farmers’ Almanac
2007.
No matter how far on or off any
predictions are for this winter, one
thing is for sure – weather-related
slips/falls incidents often produce
serious injuries that are both painful
to employees and expensive to
employers. Two years ago, slips/falls
accounted for over 250,000
occupational injuries nationally.
Slips/falls account for nearly
15 percent of all Workers’
Compensation costs.
• Owners, managers, and supervisors
must make a commitment to prevent
accidental slips, trips, and falls.
• Contact a professional snowremoval service well in advance of
inclement weather.
• Your snow-removal plan must
account for all areas of the property
(parking lots, walkways, and seldomused emergency exits.
• A person or persons should be
responsible for arriving first thing in
the morning to inspect and treat any
problem travel areas; i.e., employee,
service, customer parking, entrances,
etc.
• Have the necessary equipment and
supplies ready for use (shovels, snow
rakes, buckets of sand/salt for each
entrance, etc.)
• Remind employees in advance to
dress appropriately by wearing nonslip footwear.
• Insist that employees immediately
report any lingering slippery areas.
• Regular inspections of working and
walking areas should be conducted to
identify areas which could cause
slips/falls. Special attention should
be given to the working and walking
surfaces, housekeeping, lighting,
vision, and stairways. Immediate
corrective action should be taken.
• Lastly, if you know that you have
any substantial problem areas, such
Meet
Your Partners
as roof drainage areas, look for longterm solutions to rectify the problem.
If you have a location that requires
constant attention, eventually,
someone is going to “drop the ball,”
and something bad will happen.
Remember, being prepared in
advance will save you and your
employees a lot of headaches when
inclement weather does strike.
Feel free to contact me at
800-852-3372 or by e-mail at
paustin@nhada.com for further
information or assistance in
inclement-weather planning.
New England
Chrysler-Jeep
Dealers Advertising
Association
~ Silver ~
The New England Chrysler-Jeep
Dealers Advertising Association thanks
the New Hampshire Chrysler and Jeep
dealers for their support and is proud
to be a sponsor of the New Hampshire
Automobile Dealers Association and
the New Hampshire Automotive
Education Foundation.
• Organize an inclement weather
team (usually, the Sales Department).
December, 2006
page 17
Dateline: NH
From Your NADA
Director
Jack Tulley
T
he NADA Board of Directors
has elected a new Chairman
and Vice Chairwoman in
preparation for the coming year. Dale
Willey of Dale Willey Automotive,
Lawrence, Kansas, was elected
2007 Chairman. “I look forward to
working with dealers across the
country to build on NADA’s strong
record of achievement this year and
to address the considerable challenges
facing the industry in the year
ahead,” said Willey. A dealer since
1970, Willey is currently NADA’s Vice
Chairman. He has been on the Board
of Directors since 1998 and has
chaired a number of Committees,
including Dealership Operations,
Public Affairs, Regulatory Affairs,
and Automotive Trade Association
Executives/NADA.
Annette Sykora of Smith Ford/
Mercury in Slaton, Texas, and Smith
South Plains Ford/Lincoln Mercury/
Dodge/Chrysler/Jeep, Levelland,
Texas, was elected 2007 Vice
Chairwoman. A dealer since 1989
and NADA Board member since
1999, Sykora has chaired the Public
Affairs and Convention Committees
and co-chaired the Automotive Trade
Association Executives/NADA
Committee.
In other NADA news ...
• Did you host an Automotive Career
Month event in October? Be sure your
page 18
a publication of the New Hampshire Automobile Dealers Association
Looking Toward 2007
dealership gets credit for your efforts –
let NADA know about it. Also, send
us your best event photos or video
footage; they may be posted to the
NADA Web site or used in NADA’s
AutoExec magazine or in next year’s
event-planning kit. E-mail photos to
acm@nada.org or call 800-248-6232,
ext. 7147, for more information.
• Thousands of dealers across the
country participated in Child
Passenger Safety Month in September
by holding child safety-seat
inspections. NADA would like to hear
about your seat check. E-mail
rwhite@nada.org a description and
photos of your event, along with
suggestions for next year’s Child
Passenger Safety Month.
• 2007 NADA Convention speakers
have been announced. American
Honda Executive Vice President
Richard E. Colliver will speak at the
NADA Convention and Exhibition in
Las Vegas on Saturday, February 3.
Also speaking at the opening session
is former professional boxing
champion Sugar Ray Leonard, who is
currently the host of the reality TV
show, “The Contender,” and is a
popular speaker. Jack Welch, former
Chairman and CEO of General
Electric Co., will address the
Convention on Monday, February 5.
New York City Fire Department Chief
Richard Picciotto, the last fireman to
escape the World Trade Center’s North
Tower on September 11, 2001, will
lead the inspirational session on
Sunday, February 4.
• Advance registration for the
Convention continues through
December 22, 2006. To register
on-line or download a registration
form, visit www.nada.org/convention
or call the Convention Department at
703-821-7188.
• Don’t forget the NHADA Dessert
Reception, which will be held on
Saturday, February 3 (see below).
• Preview the 2007 Exposition show
floor on-line at www.nada.org/
convention. Search for a specific
exhibiting company by keyword,
product category, or country; or view
the entire list of exhibitors. Also
available: searchable lists of franchise
meetings, workshops, and other
Convention activities.
In legislative news ...
The House Total-Loss Disclosure bill
may move in the lame-duck session of
Congress, so a major push is on to
secure co-sponsors for the legislation,
known as the Damaged Vehicle
Information Act (H.R. 6093). To
support that effort, NADA has set up
a Web page about the bill to provide
background information and action
items for dealers. The information
NADA - Continued on page 21
NHADA Dessert
Reception
Saturday, February 3
Caesar’s Palace
Claudius I Room
9:30-11:30 p.m.
We hope to see you there!
December, 2006
Dateline: NH
December, 2006
a publication of the New Hampshire Automobile Dealers Association
page 19
Dateline: NH
a publication of the New Hampshire Automobile Dealers Association
NHADA Members Can Help Contain
Workers’ Compensation Medical Costs
Claims Corner
Pete Sheffer, NHADA WCT Claims Manager
J. Marta Robbins, RN, BSN, WCT Nurse Case Manager
T
he cost of medical treatment
for Workers’ Compensation
claims has increased annually
9.5 percent on the national level since
1997. In New Hampshire, medical
costs are increasing at a slower rate of
approximately 5 percent a year since
1992; but there was a huge jump
from 2003 to 2004 in the amount of
17.6 percent, according to the
National Council for Compensation
Insurance. The NHADA WCT controls
the medical costs associated with
Workers’ Compensation claims, but
we can do better with the help of our
members.
Meet
Your Partners
Ken McKenna
page 20
Prompt and appropriate medical
treatment is the key to successful
work-related injury outcomes.
NHADA WCT members are in a
formal managed care program
through comp mc. When members
and their injured employees call the
Nurse Case Manager, Marta Robbins,
they will be assisted in choosing the
best medical provider based on the
injury. We have found that the most
appropriate treatment for the vast
majority of injuries is an
Occupational Medicine Specialist. In
New Hampshire, there are several
Occupational Medicine facilities
conveniently located across the state.
These facilities will see patients
Hunter Engineering Co./
Lappens Auto Supply
~ Bronze ~
Hunter Engineering Company is a
world leader in wheel alignment
equipment, wheel balancers, tire
changers, brake lathes, inspection
laws, and heavy-duty products.
Hunter has factory-trained technical
and training representatives for all
products. For more information,
please contact Ken McKenna at
603-860-0107; visit their Web site at
www.hunter.com.
immediately following an injury
without the long wait generally
associated with Emergency Room
visits. They provide excellent care at a
fraction of the cost of an Emergency
Room visit.
The following is a cost comparison for
injury treatment by both types of
providers that was obtained through
recent claims processed in our office.
• Minor back injury:
Emergency Room–$900
Occupational Health–$125
• Minor knee injury:
Emergency Room–$1,100
Occupational Health–$125
• Minor eye injury:
Emergency Room–$200
Eye Doctor/Occupational Health–$70
• Minor finger injury:
Emergency Room–$1,500
Occupational Health–$72
• Minor laceration/hand or fingers:
Emergency Room–$1,000
Occupational Health–$250
In previous Dateline articles, we have
written about when Emergency Room
treatment is appropriate and when it
is not. Injured workers continue to
utilize the Emergency Room when
their injuries are better treated
elsewhere. There is common myth
that going to the Emergency Room
means “fast” treatment. Most visits to
the Emergency Room for minor
injuries tie injured workers up from
work for hours; and if a co-worker
drove them, then double the time
lost. In many instances, the treatment
of even minor work-related injuries
will result in the injured employee
December, 2006
Dateline: NH
being taken out of work pending
follow-up with either an Occupational
Health Specialist or other specialty
provider. The high costs of Emergency
Room treatment involve more than just
the cost of the care. Lost time from
work results; and, in some cases, this is
just a stepping stone to a more
appropriate provider that could have
been utilized from the beginning.
We found that injured employees
utilize the Emergency Room for the
following reasons:
a publication of the New Hampshire Automobile Dealers Association
NADA - Continued from page 18
can be found on the left-hand side of the NADA home page, www.nada.org,
under the heading Total-Loss Disclosure. It includes talking points on
H.R. 6093 and the Senate bill S. 3707, the Passenger Vehicle Loss Disclosure
Act. The sponsor of H.R. 6093, Rep. Cliff Stearns (R-Fla.), has indicated that
the bill could move to the Floor if it gains enough support from co-sponsors.
The site includes sample letters for dealers and local and state association
leaders to send to their legislators, urging them to co-sponsor H.R. 6093 and
S. 3707. Dealers are encouraged to visit the site to familiarize themselves with
the bills and to download the sample letters to send to their Representatives
and Senators.
As usual, please feel free to contact me with your questions or concerns at
888-0550 or at jack@tulley.com.
• The injured worker is not aware of
the mandatory managed care
program.
• The injured worker doesn’t check in
with anyone in management prior to
leaving for treatment.
• The supervisor that the injured
worker checks in with hasn’t been
educated regarding the managed care
program by management.
• No call is made to the NHADA
WCT when the injury occurs and
prior to the injured worker leaving for
treatment.
All of these areas of concern can be
fixed with education. Employees need
to know what to do and who to
report to when they are injured at
work. Supervisors need the same
training that management and
human resources receive regarding the
process of what to do when an
employee is injured. The WCT Claims
Department is happy to provide
training to your management and
supervisory team. Please contact
Bernie Hecht to schedule training at
800-852-3372 or at
bhecht@nhada.com.
Please contact the claims team at
800-852-3372 if you have any
questions or concerns.
December, 2006
page 21
Dateline: NH
a publication of the New Hampshire Automobile Dealers Association
“Negative Equity” Financing Under Scrutiny
Scott W. Ellison, Esquire
E
arlier this year, the New
Hampshire Supreme Court
issued a ruling addressing a
dispute that arose out of a trade
practice which some auto dealers use
in situations involving trade-in
vehicles that have “negative equity.”
This article will review this ruling and
address this particular practice for
how negative trade-in equity is
handled.
By way of background, a trade-in
vehicle is said to have “negative
equity” if at the time the vehicle is
traded in, the customer owes an
outstanding balance on the vehicle’s
loan which is more than the value of
the trade-in vehicle. There are several
practices dealers use to address this
scenario; the practice under scrutiny
in the recent Supreme Court case
involves the auto dealer artificially
increasing the value of the trade-in
vehicle by the amount of the negative
equity and then inflating the
purchase price of the new vehicle by
the same amount. The effect is that
the customer essentially refinances the
amount left on the trade-in vehicle
loan, but the fact that the negative
equity is being financed in addition
to the purchase price of the new car is
masked.
Looking at the particular facts of this
case, a customer bought a car in a
sale in which the purchase price first
had been stated in the original cash
page 22
amount in a vehicle cash purchase
agreement but was then inflated by
the amount of the negative equity
when the retail installment contract
was signed. Subsequently, the
customer sought a refund of the
purchase price under New
Hampshire’s so-called “lemon law,”
RSA 357-D. RSA 357-D states that if
a dealer is unable to repair a problem
covered by a new vehicle’s warranty
in three tries or if the vehicle is out of
service for 30 days, then at the
customer’s option the customer is
entitled to a refund of the car’s “full
purchase price” as stated in the
“purchase contract” or to a
comparable replacement vehicle. The
customer in this case wanted a
refund, and at issue was whether the
amount to be refunded was the
original sales price of the vehicle set
forth in the purchase agreement or
the amount set forth in the retail
installment contract after it was
grossed-up by the amount of the
negative equity. The New Hampshire
New Motor Vehicle Arbitration Board,
which administers RSA 357-D, ruled
that the price listed in the retail
installment contract (which included
the negative equity gross-up) was the
amount that was ordered to be
refunded to the consumer by the
manufacturer. A trial court sided with
the Board’s interpretation. In its
ruling, the Supreme Court overturned
the New Motor Vehicle Arbitration
Board and the trial court and ruled
that the Board exceeded its authority
by adopting the inflated vehicle price
from the retail installment contract
and instead should have used the
non-inflated purchase price from the
vehicle cash purchase agreement.
What is interesting is the discussion of
this grossing-up practice during the
case. In arguing that the grossed-up
value from the retail installment
contract is the correct amount to
refund, the Office of the New
Hampshire Attorney General argued
that the practice of increasing sales
prices by negative equity constitutes
an “unlawful and unfair trade
practice” in that it improperly
documents the negative equity and
represents a false cost of the new car.
Notably, the New Hampshire
Supreme Court does not disagree with
this argument, but rather states twice
that the propriety of this practice was
not an issue that the Court was asked
to address in this particular litigation.
That statement should be sufficient
to make any dealer who uses this
practice pause to consider its
implications and whether it is likely
that such issue will be presented to
the Court next time under a different
statute. Sometimes a subtle hint is
the only warning you get. A review of
this case, with consideration of the
arguments made by the Attorney
General’s Office and the subtle
response of the Supreme Court, then
raises the question of how to best
address situations involving negative
equity of trade-in vehicles.
Across the country, several courts that
have examined this practice have
come to differing conclusions as to
how it must be addressed and
whether the practice is permissible.
None of the courts have jurisdiction
over New Hampshire, however. There
is some guidance from a federal
agency that is illuminating.
Regulation Z is the federal regulation
issued by the Board of Governors of
December, 2006
Dateline: NH
the Federal Reserve System to
implement the Federal Truth in
Lending Act. The Official Staff
Commentary to Regulation Z, setting
forth the position of the Federal
Reserve Staff, states in one example
that in their opinion the amount of
negative equity should be disclosed
“as an additional amount financed,”
separate and distinct from the
“principal loan amount or the cash
price.” The regulations are clear that
the “cash price” is the amount at
which the dealer offers to sell the
motor vehicle for cash; when reflected
in the required “amount financed”
disclosures, the “cash price” figure
should not be inflated by negative
equity.
Thus, in conclusion, the advisability
of grossing-up a purchase price by
negative equity is debatable.
Adopting a practice of disclosing the
negative equity pay-out as a separate
detailed amount in the itemization of
the amount financed is consistent
with the opinion of the federal agency
overseeing Regulation Z. With the
caveat that the practice advocated by
this article is not necessarily the only
legally permissible practice and, to be
very clear, noting that no New
Hampshire court has found grossingup by negative equity to be illegal, a
more prudent practice would be to
list the amount of the negative equity
as a separate line item which is
included in the amount financed,
separate and apart from the price of
the new vehicle, much the same way
that additional amounts due for
warranties and service contracts are
added as separate line items.
Scott W. Ellison, Esquire is a partner in the
Business Law Practice Group of the
Manchester, New Hampshire, office of Devine,
Millimet & Branch, PA, a Silver Association
Partner.
December, 2006
a publication of the New Hampshire Automobile Dealers Association
Statistics provided by Gordon-Darby
Safety/OBD II Inspections Statistics
Safety
Inspection Results
Total *
Passed
Corrected
Rejected
Untested
Oct 06
% of
Total
YTD 06
% of
Total
100,270
80,322
15,985
3,959
4
100.00%
80.10%
15.90%
3.90%
0.00%
1,066,378
854,100
171,027
41,198
53
100.00%
80.10%
16.00%
3.90%
0.00%
81,009
67,475
11,581
1,953
100.00%
83.30%
14.30%
2.40%
847,589
708,770
119,533
19,286
100.00%
83.60%
14.10%
2.30%
OBD II
Inspection Results
(1996 and newer)
Total
Passed
Rejected
Untested
* Total numbers include OBD II Inspections
P 603-742-4878 ~ C 603-438-4878 ~ normawillard@comcast.net
7 Lakeview Drive, Dover NH 03820
page 23
Dateline: NH
a publication of the New Hampshire Automobile Dealers Association
2006 ASSOCIA
TION PAR
TNERS
SSOCIATION
ARTNERS
SIL
VER (CONT.)
SILVER
Thank
you
(as of 11-17-06)
BR
ONZE (CONT.)
BRONZE
F&I RESOURCES
G W MARKETING SERVICES
GLOBAL PAYMENTS
GM AND GMAC
HRH NORTHERN NEW ENGLAND
HUNTER ENG. CO./LAPPENS AUTO SUPPLY
JEWETT CONSTRUCTION CO., INC.
JM&A GROUP
JOBSINNH.COM
MORGAN STANLEY (ALAN SCALINGI)
BRONZE
NANCY PHILLIPS ASSOCIATES, INC.
ADP - DEALER SERVICES
NEW ENGLAND INVESTMENT & RETIREMENT GROUP
AFTERMARKET SPECIALISTS/ROYAL ADMIN.
NORTHEAST AUTO AUCTION, INC.
AHC, CORP.
PROTECTIVE
ALBIN, RANDALL & BENNETT
RATH, YOUNG AND PIGNATELLI, P.A.
ALLTEX UNIFORM RENTAL SERVICE
RESOURCES MANAGEMENT INSURANCE AGENCY
ANTHEM SPECIALTY
ROBBINS AUTO PARTS, INC.
ARMORED TIRE USA
SANEL AUTO PARTS CO.
AUTO AUCTION OF NEW ENGLAND
SEACOAST MEDIA GROUP
@UTOREVENUE
SOVEREIGN BANK
AUTOTRADER.COM
TD BANKNORTH, N.A.
BELLWETHER COMMUNITY CREDIT UNION
TIRE WAREHOUSE
BG PRODUCTS/WAREHOUSE DISTRIBUTORS OF N.E. TYLER, SIMMS & ST. SAUVEUR, CPAS, P.C.
CREDIT UNION DIRECT LENDING
To become a Partner in 2007, call Louanne – 800-852-3372.
DOWNEY & COMPANY, LLP, CPAS
LACONIA SAVINGS BANK
MANHEIM’S AMERICAN AUTO AUCTION
NEW ENGLAND CHRYSLER-JEEP DAA
NORTHEAST DELTA DENTAL
O’CONNOR & DREW, P.C. &
OCD CONSULTING, LLC
SOUTHERN AUTO AUCTION
ST. MARY’S BANK
WINDWARD PETROLEUM/EXXON MOBIL
PL
ATINUM
PLA
N.E. DODGE DAA
UNIVERSAL UNDERWRITERS GROUP
WMUR-TV/NEW HAMPSHIRE
GOLD
CITIZENS BANK
UNION LEADER CORPORATION
WIGGIN & NOURIE, P.A.
SIL
VER
SILVER
ADESA BOSTON
AMERICAN FIDELITY ASSURANCE COMPANY
ANTHEM BLUE CROSS AND BLUE SHIELD
DEVINE MILLIMET
ENTERPRISE RENT-A-CAR
New Hampshire Department of Safety, Division of Motor Vehicles
Title Statistics Report Month Ending: 10/31/06
*Increased numbers
due to backlog catch-up
October
06 YTD
05 YTD
Titles Issued for New and Demo Vehicles:
Titles Issued for Used Vehicles:
TOTAL TITLES ISSUED:
9,526
22,428
31,954
118,591 *
250,472
369,063
95,793
185,113
280,906
Titles Issued with a Lien:
Titles Issued with no Lien:
13,077
18,877
152,983
216,080
118,772
162,134
Salvage Titles Issued:
Salvage Tags Issued:
742
302
9,030
2,948
7,369
2,708
Titles Issued for Heavy Trucks More than 15 Years Old:
Titles Issued for Heavy Trucks 15 Years Old or Less:
Titles Issued for Trailers:
Titles Issued for Motorcycles:
Titles Issued for Motor Homes:
50
217
958
862
116
548
2,208
12,095
17,006
1,140
438
1,659
9,044
12,964
959
page 24
December, 2006