Pub. 12 2013-2014 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 9 new jersey auto retailer w w w . n j c a r . o r g Chairman’S MESSAGE  continued from page 4 NADA Director’s Message  continued from page 7 This new service eliminates the costly and time-consuming efforts to verify coverage and will reduce the amount of money dealers spend on spot insurance. The majority of spot insurance policies aren’t even necessary, since most customers have good insurance in place, but the process of verifying that coverage at the time of delivery is sometimes difficult. This online systemwill enable deal- ers to confirm coverage and immediately print a confirmation. It is still the responsibility of the consumer/dealer to make sure the new vehicle is added to the policy. The dealer will pay a flat fee for each policy it looks-up and can pass this cost on to the consumer as long as it is properly disclosed on the Retail Order Form. While 70% of New Jersey insurance minorities paying more for auto loans. The Bureau’s guidance could drastically change how auto finance sources compensate dealers for arranging auto loans. The problem is that the industry has no idea how the CFPB con- cluded disparate impact exists in today’s marketplace, since it can only be proven through a statistical analysis of past transactions. The CFPB has not revealed how it is conducting its analysis or what data it is relying upon. There is also no indication that the Bureau has studied how moving to a “flat fee” compensation method would impact the marketplace. The industry contends that eliminating a dealer’s ability to discount the credit rates would ultimately affect the amount consumers pay for credit. Dealer-assisted financing—which is optional—increases access to and reduces the cost of credit for millions of Americans. Automotive customers overwhelmingly choose dealer-assisted financing because it is convenient and competitive. Before this consumer-friendly model is disrupted, the CFPB should explain how it is conducting its analysis and should also demonstrate the effect flat fees would have on today’s intensely competitive auto financing market. The CFPB also needs to provide the public an opportunity to comment on its assumptions and proposed actions. FTC Revises Online Advertising Disclosure Guidelines The Federal Trade Commission (FTC) recently released new guid- ance for mobile and other online advertisers that explains how to make disclosures clear and conspicuous to avoid deception. Updating guidance known as Dot Com Disclosures, which was released in 2000, the new FTC guidance, .com Disclosures: How to Make Effective Disclosures in Digital Advertising, takes into account the expanding use of smartphones with small screens and the rise of social media marketing. It also contains mock ads that illustrate the updated principles. Like the original, the updated guidance emphasizes that consumer protection laws apply equally to marketers across all mediums, whether delivered on a desktop computer, a mobile device, or more traditional media such as television, radio or print. Relief Efforts Continue Months after Hurricane Sandy When Hurricane Sandy slammed into the Northeast last fall, hundreds of dealership employees were hit hard. Dealers across the nation rallied to help. The day after the storm, the NADA Charitable Foundation mobilized its Emergency Relief Fund, established in 1992 to help dealership employees affected by natural disasters. NADA and the Greater New York Automo- bile Dealers Associations jump-started the fundraising with significant contributions so that the Foundation could begin helping dealership employees right away. Within days, dealers and state and metro dealer associations all over the country sent donations. To date, the Fund has assisted nearly 700 dealership employees whose lives were disrupted by Sandy. The need is ongoing. To donate or apply for assistance, please visit the fol- lowing website: http://www.nada.org/CharitableFoundation/ EmergencyRelief Fund. providers are in the Insurance Services Organization (ISO) sys- tem, which houses the data that will be accessed by ADVIS, not every provider currently utilizes ISO. Dealers will not pay for inquiries that don’t produce a hit. More information about this valuable program will be distributed to members as the launch date approaches. Sometimes technology can give us fits and make us wish for the “good ole days,” but the three new online products created by NJ CAR can help us operate more efficiently and profitably. Please take a closer look at howeach of these services can benefit your dealership as they are rolled out this Summer.