Pub. 11 2012-2013 Issue 3

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 11 new jersey auto retailer W W W . N J C A R . O R G lation Z (Truth in Lending Act) and Regulation M (Consumer Leasing Act) for exempt consumer credit and lease transactions will increase to $53,000 beginning January 1, 2013. This means that beginning January 1st, consumer credit transactions and consumer leases at, or below $53,000, are subject to the protec- tions of the regulations. These increases are consistent with the Dodd-Frank Act amendments to the Truth in Lending Act and the Consumer Leasing Act to adjust these thresholds annually by the annual percentage increase in the Consumer Price Index. Used Prices Remain Essentially Unchanged Market prices for nearly all NADA segments in November were noticeably stronger than what is normally seen for the period as prices remained essentially unchanged fromOctober’s levels. On a whole, market prices have fallen by a barely noticeable 0.1% compared to October, which is a significant improvement over the 2-3% average fall for the month. Prior to Hurricane Sandy, it was expected that the already taunt relationship between used- vehicle supply and demand would see little change in the trend of depreciation outperforming historical levels, but the destruction left by the storm has exacerbated this relationship and there has been a predictable reaction in used prices. On the car side, compact and luxury prices fell a slight 0.6% and 1.0%, respectively. Following in similar fashion, the rate of decline for large pickups and large SUVs was 1.1% and 1.6%, respectively. Compact and luxury utilities also declined slightly at 0.2% and 0.7%, respectively. In the coming weeks, NADA expects that price movement will deviate little from the present course. Considering the prevailing relationship between used-vehicle supply and demand along with the disruption caused by Sandy, used prices will likely remain flat through December instead of progressively softening as is typi- cally the case. For more information, visit www.nada.com/b2b. DCH Auto Group Promotes Teen Driving Safety through NADA Foundation The DCH Auto Group has allocated its grants from the Ambas- sadors program of the National Automobile Dealers Charitable Foundation to preventing the No. 1 cause of death among teens: car crashes. To help fund its safety programs, DCH contributed $10,000 to name each of its dealerships (31 at the time) as NADA Foundation Ambassadors. DCH currently operates 29 dealerships in New Jersey, New York, Connecticut and Southern California. The dealership group, which holds a record number of ambas- sadorships, recently received a $62,000 grant from the program to promote its safe driving programs for teens through education and advocacy. To become an NADA Foundation Ambassador, a dealer, company, association or individual makes a tax-deductible contribution of $10,000 in their name or in recognition of a loved one, living or deceased. Ambassadors are then eligible to pro- vide $1,500 grants every three years in perpetu- ity. Benefactors who have made three or more $10,000 donations are designated Ambassadors of Distinction and can present $2,000 grants every year in perpetuity. put, this is the practice of advertising an attractive deal that is not actually available. The goal is to bring customers in and sell them a vehicle at less favorable terms than those advertised. When examined in light of the regulation, Tesla’s advertising and sales practices are nothing more than an attempt to return to the bad old days that prompted the adoption of New Jersey’s current system of consumer protections. The most critical point is that Tesla is advertising vehicles at a stated price when these vehicles do not yet exist and, in fact, will not be manufactured for many months. There is no guarantee that the vehicles, when and if they are finally built, will actually be sold at the prices advertised. The traditional motor vehicle dealership, one with inventory on hand and the ability to actually service vehicles, would be shut down for doing business this way. The dangers these practices present to customers are obvious. New Jersey’s consumers have a right to demand that Tesla Motors, Inc. be held to the same standards that govern every other motor vehicle retailer doing business in the State. The State of New Jersey should have never granted Tesla a license, let alone two of them. But, now that they have, and we have seen the way they intend to do business, the State should pull the licenses and shut this operation down. PRESIDENT’S MESSAGE  continued from page 5