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 7 new jersey auto retailer W W W . N J C A R . O R G NADA Launches National Ad Campaign Against Stair-Step Incentive Programs NADA recently kicked off a national print ad campaign detailing the many negative aspects of manufacturer stair-step incentive programs. The full-page ad, “Stair-Step Incentive Programs are Bad for the Auto Industry,” began running in the September 10 edition of Automotive News. The ad points out that “stair-step programs create too many negatives to justify their use.” Stair-step programs “harm brand credibility; hurt dealers of all sizes; under- mine relationships between dealers and their customers; have an adverse effect on CSI scores; and destroy consumer confidence in dealers – and in manufacturers’ brands.” The ad concludes: “There are better ways to structure incentives.” NADA Retains Search Firm to Identify Candidates for President NADA has formed a search committee to identify candidates for consideration as NADA’s next president, following the July resig- nation of Phil Brady. Former NADA Chairman John McEleney will lead the search committee and NADA has recently hired a search firm to assist with the process. NADA is expected to an- nounce its next president by the end of the year. Congressional Bill to Repeal ‘Obsolete’ Government Mandate on Dealerships Passes House The House of Representatives recently passed legislation repeal- ing a federal mandate that requires dealers to provide car buyers with a booklet comparing vehicle insurance repair costs upon request. The bill eliminates a potential $1,000 fine, which dealers currently face for not providing copies to their customers. NADA will continue searching for additional ways to reduce regulatory burdens on dealers. Dealers Urged to Contact Congress About Tax & Spending Concerns Now that Congress has returned from its annual summer recess, a major legislative battle over taxes and debt reduction is likely to extend through a post-election session. NADA encourages dealers to contact their Representatives and Senators to warn them that unless federal action on taxes and debt reduction is taken, there may be local economic consequences. Prior to the summer recess, the House passed legislation extending the current individual tax rates through 2013 and maintaining the estate tax at current levels ($5 million per spouse exemption and a 35% rate). Incentives and Declining Used-Car Prices to Boost Auto Sales New-vehicle incentives and rebates as well as declining prices on used vehicles are a couple of factors pointing to steady auto sales heading into the fall. Dealers and manufacturers are expected to offer incentives and rebates to sell remaining inventory at dealer- ships and to make room for new model year vehicles arriving in the next few months. NADA Director’s MESSAGE | BY MARCY H. MAGUIRE, NADA DIRECTOR FOR NEW JERSEY nada director’s message  continued on page 8