Pub. 1 2012-2013 Issue 2

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 U M M E R 2 0 1 2 12 13 new jersey auto retailer W W W . N J C A R . O R G new jersey auto retailer P: 215-355-8000 voynowbayard.com The Northbrook Corporate Center • 1210 Northbrook Dr, Suite 140 Trevose, PA 19053 ACCOUNTANTS & MANAGEMENT ADVISORS TO THE AUTOMOTIVE INDUSTRY SINCE 1954 VOYNOW, BAYARD,WHYTE & COMPANY, LLP CERTIFIED PUBLIC ACCOUNTANTS Financial Reporting & Projections/Forecasts n Internal Control Design n Employee Benefit Plans n Tax & Estate Planning Lifo Inventory Applications n Cash Management & Budgeting n Management Advisory Services n Performance Evaluation & Cost Analysis n Buy/Sell Agreements &Succession Planning n Mergers &Acquisition s n Personnel Evaluation&Compensation Planning STEERING YOU IN THE RIGHT DIRECTION. Voynow 1/2.indd 24 2/9/12 1:17 PM RIVERSIDE AUDI ~ INTERCAR PORSCHE AUDI VW ~ W & S JESS JONES AUDI HANDY VOLKSWAGEN ~ METROPOLITAN VW ~ PAUL MILLER LAND ROVER WAYNE BMW-MAZDA ~ WORLD DODGE ~ WINFIELD MOTORS DODGE MAPLEWOOD DODGE ~ SUBURBAN DODGE ~ AUTOFAIR CHRYSLER- PLYMOUTH, DODGE ~ NORTH HUDSON DODGE ~ ROYAL MOTORS DODGE CASLER DODGE ~ MICHAEL DODGE ~ SOUTH RIVER DODGE MT. HOLLY DODGE ~ BRICK CHURCH BUICK, GMC ~ FISHER NISSAN BUTLER NISSAN ~ BERGENFIELD NISSAN ~ EAST COAST NISSAN ELMWOOD PARK SUZUKI ~ LYNNES INFINITI ~ PARK AVENUE INFINITI DELUXE SALES AND SERVICE ~ BOB CIASULLI HYUNDAI FLEMINGTON HYUNDAI ~ HIGHPOINT CHEVROLET HYUNDAI HASBROUCK HEIGHTS CHEVROLET ~ WESTWOOD CHEVROLET H&S CHEVROLET ~ PHILLIPS CHEVROLET ~ MEADOWLANDSTOYOTAMAZDA CONDIT TOYOTA-FORD ~ STADIUM AUTO MALL FORD- CHRYSLER JEEP ~ TOWNE CHRYSLER JEEP ~ ELMWOOD FORD THE NEW MENDHAM FORD ~ KNECHEL FORD ~ CENTER FORD JEEP HONDA OF ESSEX ~ MONTCLAIR BLOOMFIELD FORD ~ TRADE ZONE SPORTS AND SPECIALTY CARS (SAAB) ~ O’BRIEN NISSAN D EALERSHIP B ROKERAGE ~ B USINESS V ALUATIONS ~ S INCE 1989 MORE DEALERSHIPS SOLD THAN ANY OTHER AUTOMOBILE DEALERSHIP BROKER IN NEW JERSEY N . J . D E A L E R S H I P S S O L D CONFIDENTIALITY ASSURED • LISTINGS NEEDED Dan Murphy: dan@dtmurphy.com 973.748.0093 www.dtmurphy.com dealer innovation A driving force for more than 50 years. Key AutoFinance is part of KeyCorp, one of the largest bank-holding companies in the United States. We’ve helped auto dealers succeed by providing competitive terms on inventory financing, plus other growth-oriented solutions. Learn more about how we can help you succeed in today’s competitive market. go to key.com/kafdealer call David Stevenson, 610-212-4276 Credit products are subject to credit approval. ©2010 KeyCorp. KeyBank is Member FDIC. Key.com is a federally registered service mark of KeyCorp. ADL1236 T he Act has been amended several times over the years, to ad- dress new market realities and challenges to the franchisees around the State. The most recent amendments were passed and signed into law by Governor Chris Christie in May 2011, a little over one year ago. What follows in this issue are several articles from a variety of at- torneys that worked on the amendments to protect the franchised automotive retailers they represent throughout New Jersey. TheNew Jersey Franchise Practices Act has always offeredGarden State new car dealers some of the nation’s strongest protections. New Jersey’s law has served as a template for dealers in other states looking to level the playing field with their manufacturers. The amendments thatwent into effect last year substantially strength- en and clarify dealer rights under the State’s Franchise Practices Act. Some key provisions incorporated in the new law include: Prohibits factory programs that use vehicle pricing to force dealers to undertake expensive facilities projects; Prohibits dualing and site control, without valuable consideration/compensation; Bars captive finance companies and manufacturers from imposing unreasonable capital requirements on dealers; Protects dealers from charge backs in connection with exporting, so long as the vehicle is titled or registered in the U.S. before it is exported; Shifts burden of proof to manufacturer to prove that a new point or relocation of an existing point will not harm an incumbent franchisee; Limits warranty audits to 12 months, requires prompt payment of incentive monies and limits the time for incentive audits to 12 months; and Tightens up timeframes and limits opportunities for manufacturer to delay or place conditions on approval of a buy/sell. The passage of the amendments last year capped a two-year effort by NJCAR to identify themost pressing dealer needs and to incorporate them into the existing statute. With the additional new changes to the law, the Act is clearly one of the strongest in the Nation. Despite its strength, manufacturers continue to test the statute, in an effort tomodify key provisions of the new law they find undesirable. The effort to protect and enhance dealers’ rights remains a prior- ity for NJ CAR, it’s members and the legal minds who defend the industry’s interests.