Pub. 1 2012-2013 Issue 1

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S S P R I N G 2 0 1 2 2 3 new jersey auto retailer W W W . N J C A R . O R G new jersey auto retailer Chairman’s MESSAGE | BY WILLLIAM KUNDERT, JR. Back in the day, the only way we could find out what was going on in our town, our State, across the nation or around the world was to either read newspapers and magazines or watch the evening news on televi- sion. What a difference a few decades can make. Now, with computers, social media and smart phones, every single one of us can access information from ANY location, at ANY time and even in real time. Over the years, NJ CAR has adapted to various communication trends, looking for the most efficient ways to reach its dealer members and their employees. The Coalition has worked to provide its members with more and more options to stay informed about the industry and NJ CAR’s efforts to protect and advance the interests of New Jersey’s auto retailers. Since the Coalition also communicates with Legislators, regulators, government decision-makers, the media and a variety of other audiences as well, it is important that the manner in which the Coalition communicates with such groups utilizes the latest communication technologies. From Print… For more than 60 years, NJ CAR has produced an informative, hard-copy Newsletter. Originally it was printed on a hand- driven mimeograph and then, as technology advanced, utilizing a laser printer and photocopier. For the last 11 years, we have also produced a quarterly, glossy magazine— the New Jersey Auto Retailer. To Digital… As communication entered the digital realm, NJ CAR adapted as well. We developed and continue to build upon a website presence (www.njcar.org ) that contains a wealth of information. The NJ CAR website educates members and their employees about issues that impact the industry and the wide variety of products and services available from the Coalition to help dealerships in their day-to-day operations. Most recently, NJ CAR has begun utilizing social media, primar- ily FaceBook and Twitter, to reach members who utilize these growing communication resources. We’re still working out how best to utilize social media and welcome any suggestions from dealership personnel who have their own Facebook or Twitter accounts. And Beyond… Building on our existing communications tools, NJ CAR will soon be introducing two new ways to bring information to dealers and their employees as quickly as possible. For those that are constantly glued to their smartphones, we are in the early stages of developing an NJ CAR Application for both the iPhone and Android platforms. Details are still being worked out, but the app will be much more than just a reformatted NJ CAR website. We are looking to make it interactive and a helpful tool for users. Keep an eye out for more information as we count down to the launch of the Coalition’s first smart phone application. In addition, we will be testing the viability and dealer interest in a periodic NJ CAR Video NewsLetter. These short, topic- specific videos will be professionally produced and distributed via email, as well as posted on the NJ CAR website. They will be issued on an as-needed basis, and typically on off-weeks from the NJ CAR NewsLetter. Some of you who are reading this column continue to embrace our yellow-papered NewsLetter. Others get all of their information forwarded to their smart phone. NJ CAR will continue to keep up with the technological learning curve and provide dealers with as many options as possible to receive information. chairman’s message  continued on page 3 NJ CAR Communications Offers Dealers Information In Virtually Any Form They Want The Brokering Debate Ask two dealers for their thoughts about “auto brokering” and you’re bound to get two different opinions. Some dealers are in favor of it and others don’t like it. At the heart of the auto brokering debate is the deceptively simple question, “What constitutes brokering?” Because the practice itself has taken on a wide range of activities, more complex questions such as, “Is brokering legal?”, “Is bro- kering good or bad for the franchised retail auto industry?” and “What impact does brokering have on consumers?” are difficult to answer and spark a vigorous debate among dealers. There are, however, some areas of common ground regarding situations that are NOT considered “brokering” and are not part of the auto brokering debate. Most retailers would agree that bird-dogging, or compensating an individual for simply referring a potential customer to the dealership, is a common practice and harmless to the franchise system. However, there is a grey area as to whether or not bird-dogging or single referrals run afoul of the New Jersey Motor Vehicle Commission’s (NJMVC) dealer regulations that requires individuals who “buy, sell or deal in motor vehicles…” to be licensed as dealers. Some dealers benefit greatly from brokering services, since they can result in additional sales for their dealership. There are far too many kinds of arrangements between dealers and “brokers” for me to detail here, but they generally range from someone simply providing a dealer with a lead to a potential buyer to those who take a much more active role in the transaction and who actively hold themselves out to be “brokers”. When brokers begin to tread into the legal and regulatory limbo some dealers react negatively to the practice and see it as an infringement on the franchise system as a whole. This is particularly evident if a “broker” is advertising and holding themselves out as someone who can consummate a motor vehicle sale or lease with a consumer. In New Jersey, only those with a motor vehicle license are legally allowed to sell motor vehicles to consumers at retail. There are certain instances when dealers should absolutely be concerned when dealing with brokers. For example, sale documents MUST be signed at a licensed location and in the presence of a dealership representative. It is illegal for a dealership to draw up the sales or lease paperwork, turn it over to a “broker,” who then takes it to a potential buyer for execution and delivery (at an unlicensed location) before returning the documents to the dealership. NJ CAR has never weighed-in on the subject of auto brokering. However, since the Coalition represents the interests of ALL fran- chised auto retailers in New Jersey, we are tasked with defending the franchise rights of its members. As the practice of brokering becomes more widespread, the Coalition is anxious to hear from individual members to get their reaction to brokering and whether they support or oppose the practice. Please feel free to contact me with your thoughts and input, either by phone (609) 883-5056 extension 330, or by email: jappleton@njcar.org . President’s MESSAGE | BY JAMES B. APPLETON The Coalition works hard to keep the membership informed and strives to keep its various communications concise and easy to understand. It is up to us, as members, to review the communi- cations we receive, regardless of the format in which we receive them. We must also not hesitate to contact NJ CAR’s staff for more information or clarification when a particular topic strikes our interest. chairman’s message  continued from page 2 No matter what the means of delivering information to members, the Coalition staff remains willing and able to assist members with questions regarding the operation of their business. So, if you have a question, don’t hesitate to contact NJ CAR headquarters for an answer from a staff member.