Pub. 15 2016-2017 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 19 new jersey auto retailer W W W . N J C A R . O R G regulation. Last year, it proposed regulat- ing the finance charges such dealers may charge and specified payments that need to be included in calculating the finance charge for its purposes, even though some of those payments are not typically included in the finance charge in a retail installment sales contract. How far this proposal will go in the new year remains to be seen but dealers who have “buy here – pay here” operations need to keep abreast of what may be happening. Federal vehicle fuel economy standards (“CAFE”) is another area that may get a different look by a Trump Administration. The Obama Administration has set stringent standards formanufacturers tomeet in the up- coming years. Their purpose is topushhybrid and alternate fuel, especially electric, vehicles. Manufacturers and distributors are con- cerned about their ability to meet the CAFE requirements and dealers are concerned that the manufacturers and distributors will push hybrid and electric vehicles on themthat consumers do not want, and that they will not be able to sell. With average fuel costs currently low, customers are trending away from electric and hybrid vehicles to SUVs and light trucks which are less fuel efficient. Given thenewPresident’s predilectionagainst regulation, a Trump Administration may be willing to take another look at the require- ments and either relax them or extend the compliance date. How a change in CAFE at the Federal level will affect New Jersey is less certain. The California’s Air Resources Board (“CARB”) can set vehicle emissions standards indepen- dent of Federal regulation, and a number of states, including New Jersey, apply the CARB requirements. As a result, if the Federal CAFE requirements are scaled back, CARB may step into the breach. Then, the push to sell more hybrid and elec- tric vehicles than consumers may want may remain, even if the Federal CAFE standards are relaxed. Over the past few years, the Federal Trade Commission (“FTC”) also has been active with respect to motor vehicle dealers. It has brought charges against a number of dealers around the country for unfair and deceptive advertising and has forced those dealerships CRYSTAL BALL  continued on page 20