90% there: motor vehicle dealer board sunset review process underway

Sunset Review for the Motor Vehicle Dealer Board, our every ten-year ritual to retain dealer oversight of the industry, has a name and face - Senate Bill 221.

After numerous meetings, headaches, a few heartaches and negotiations, we have agreement with the Department of Regulatory Agencies (DORA) on nine of the ten issues up for review.

  CLICK HERE to read this informative article by CAR lobbyist Jeremy Cottrell. 
 

DENVER INTERNATIONAL AUTO SHOW — OFF-SITE PERMITS REQUIRED

The upcoming Denver Auto Show provides dealers the opportunity to market to new customers and show off the latest and even futuristic, concept cars.

If you or any of your sales staff plan to work the show, please be aware of the off-premise sales permit needed to comply with the state’s guidelines for showing products and discussing prices.  According to state statutes, off-premise permit applications must be made to the Auto Industry Division before the start of the overall show (Wednesday, March 28^th). 

  CLICK HERE for off-premise permit application.

* * * * * * *

REMINDER: SUNDAY SALES ARE PROHIBITED AT THE DENVER INTERNATIONAL AUTO SHOW

This is to remind all member dealers who intend to participate in the Denver International Auto Show this year that your sales representatives cannot sell or offer to sell vehicles on Sunday.  CADA has always advised sales representatives to refrain from discussing any specifics regarding price, terms, financing, or aspects of an actual sale or offer to sell.  On Sunday, discussions with consumers need to be focused on educating consumers on vehicle features.  The off-site permit for the auto show does NOT permit Sunday sales; off-site events are still subject to the Sunday closing law.

  CLICK HERE  to review a memo with more details regarding the Sunday closing law and the auto show.

If you have additional questions on any legal or regulatory topics, please contact either Tammi McCoy or Tim Jackson:

• Tim Jackson, President, tim.jackson@cadaonline.org, 303.282.1448

• Tammi McCoy, VP, tammi.mccoy@cadaonline.org, 303.282.1449

* * * * * * *

TRYING TIMES FOR AUTO RETAILING
Tim Jackson, CADA President

There are a number of indicators that demonstrate we in the auto retail industry are currently in some trying times.
 

Sales have ranged from flat to dismal for many brands and the slow sales trend has hung on for much longer than most ‘experts’ predicted.
 

A national survey of dealerships based on January results indicated that more than half of all dealers nationally lost money in January. Even for those who were in the black struggled. Fewer than ten percent of all dealerships nationally made over $10,000 for the month, according to the survey.
 

As manufacturers struggle to bring new products on line and meet competitive challenges, new governmental leaders in Congress are broaching issues that have not been on the front burner for years. The new tougher legislative battleground potentially includes, but is not limited to:

• New tougher CAFÉ standards

• Elevated minimum wage

• Tougher emission standards

• Easier efforts toward unionizing workplaces

• Less hope of eliminating ‘death tax,’ now focused on easing the costly burden

• Friendlier climate for contingency-fee based personal injury trial lawyers

• Tougher regulations toward domestic oil production resulting in higher fuel costs

• So-called right-to-repair proposal is apt to be back in a force

• LIFO repeal remains an issue

NADA’s national auto dealer legislative agenda just got much tougher!!  
 

The November elections were not much kinder on dealers in Colorado. The changed landscape in the Colorado Capitol has brought a host of new issues to the forefront at a time when our legislative agenda was already on ‘peak alert.’  The Colorado voter-enacted passage of Constitutional Amendment 41 has resulted in it to being more difficult, to the point of being risky, to aggressively advocate dealer positions in the State Capitol.

As Jeremy Cottrell covered in his attached column, we have a host of auto dealer issues that we are advocating through the lobby group Colorado Automobile Retailers (CAR). These include but are not limited to:

• Sunset Review of Motor Vehicle Dealer Board—including a ten-point priority list

• Opposing efforts to eliminate Colorado’s Labor Peace Act

• Opposing efforts to repeal the ban on Sunday sales

• Tightening of Colorado Franchise Act

• Researching best method for registering newly purchased vehicles in Colorado

• Changing through regulation the sales amount cap on GAP (regulatory issue)

As was reported in last week’s issue of the Open Road, at least one dealer in Colorado has been hit with litigation pertaining to the collection of D&H fees. This trend began in other states and in at least one state has expanded to as many as 80 percent of the dealers statewide. If your dealership has been notified of litigation regarding the charging of D&H fees, please let us know immediately by calling my direct line at 303.282.1448.

unclaimed property compliance seminar

The Colorado Office of the Treasurer compliance/audit personnel will review Colorado unclaimed Property Laws and Regulations. The Colorado Unclaimed Property Act has covered automobile retailers since 1992

• Begin your annual reporting obligation now; penalties and interest will be waived

• Businesses in Colorado must take specific steps to return “unclaimed property”; covered property not returned to the rightful owner must be turned over to the state

• In general, “unclaimed property” includes various types of obligations or liabilities of a business which have been in active or have not been paid after an extended period of time after they are payable. Examples include:  Amounts owed to suppliers/vendors, Due Bills / We Owe Accounts (for parts, service, equipment ordered at the time of vehicle sale) Payroll/wage obligations, outstanding checks, Overpayments/refunds/rebates, or security or other deposits

• Free reporting software from a third party is available from the state for reporting purposes; a representative will review and demo the software capabilities

• Some dealerships or individuals attending may have “found” property at the state; they will check their records for all seminar attendees

   Please CLICK HERE for more information on this seminar.  Register for this seminar by returning the attached registration form or clicking on the respective link below.
 

*Breakfast or lunch will be provided.

other SCHEDULED TRAINING seminars

upcoming events for 2007

RISE Event After the 2007 Denver International Auto Show

From March 28 to April 1, the automotive industry will converge on the Mile High City as the 2007 Denver International Auto Show comes to the Colorado Convention Center. To help celebrate this outstanding event, bring all of the Colorado auto industry together and involve CADA member dealers and staff along with everyone who works to put this outstanding show on annually,
CADA F&I Resource Center welcomes you to:

• MPH (Must Party Hard) on Friday, March 30

• RPM (Ready to Party More) on Saturday, March 31

Both events will be at the huge and luxurious RISE Night Club at 1909 Blake Street in Denver’s LoDo neighborhood (www.rise-nightclub.com). That’s right, TWO full nights of hot beats, great sites, live entertainment, and high octane good times that are all available to you with FREE door access and one FREE drink.

So, get your heart racing to the show, as it only comes around once a year, and bring your auto savvy self to RISE on March 30 & 31 for this first ever multi night event! For more information and bottle service please contact Chad at the CADA F&I Resource Center, 303.319.8039 or chad.julius@cadaonline.org .

Brought to you by the CADA F&I Resource Center and the Denver International Auto Show.

GROWING GEBHARDT AUTOMOTIVE