The National Automobile Dealers Association (NADA) actively works on behalf of dealers across the country. Below is a brief review of some of the most critical issues NADA is addressing.
NADA Joins With Multiple Groups to Urge Congressional Action on Catalytic Converter Thefts
The National Automobile Dealers Association recently joined with 20 other industry partners and sent a letter to the leaders of the U.S. House and Senate Commerce Committees in support of the “Preventing Auto Recycling Theft (PART) Act” (H.R. 621/S. 154). This bipartisan bill was introduced to combat the dramatic rise of catalytic converter thefts nationwide, including right here in New Jersey.
Senators Amy Klobuchar (D-Minn.), Mike Braun (R-Ind.), Ron Wyden (D-Ore.) and JD Vance (R-Ohio) introduced the Senate bill, and Representatives Jim Baird (R-Ind.), Betty McCollum (D-Minn.), Angie Craig (D-Minn.), Randy Feenstra (R-Iowa) and Michael Guest (R-Miss.) reintroduced the companion bill in the House.
According to the National Insurance Crime Bureau, catalytic converter thefts increased by 1,215% between 2019 and 2022. Due to valuable precious metals used in the devices, stolen catalytic converters can garner anywhere from $20 to $350 on the black market. In contrast, the replacement cost to vehicle owners can be as high as $2,500. These thefts are currently difficult to combat as catalytic converters are not easily traceable and can be stolen from unattended vehicles in mass quantities, including at dealership lots.
The PART Act would give local law enforcement additional resources to prosecute thieves by requiring new vehicles to have traceable numbers stamped on the catalytic converter during assembly. The bill also increases record-keeping requirements for purchasers and establishes a federal criminal penalty for the theft, sale, trafficking or known purchase of stolen catalytic converters with a penalty of up to five years in jail. NADA and the other organizations who signed the letter have urged Congress to pass this legislation to begin combating catalytic converter thefts.
You can read the full letter here: www.nada.org/media/8004/download?inline.
NADA Market Beat: May 2023 is the 10th Consecutive Month of YOY Sales Increases
New light-vehicle sales in May 2023 were up 19.6% compared with May 2022. The 15.1 million Seasonally Adjusted Annual Rate (SAAR) for May 2023 represents the 10th straight month of year-over-year sales increases. While the May 2023 SAAR was down compared with April, total sales reached 1.36 million units.
As vehicle availability has improved, manufacturer incentives have increased. According to J.D. Power, average incentive spending per unit reached $1,788 in May 2023, an increase of 88.1% compared with May 2022. Incentive spending varies greatly by OEM and vehicle segment. As expected, OEMs and segments with the most in-demand vehicles still have very low incentive spending, while those OEMs and segments where inventory levels are higher have more available incentives.
According to J.D. Power, average transaction prices in May 2023 reached $45,838, an increase of 0.7% year-over-year. OEMs have increased the builds of more affordable vehicles, but many of these units are flowing to fleet customers.
Looking ahead, NADA predicts year-over-year sales increases in the coming months as new-vehicle availability continues to improve, with a forecast for new light-vehicle sales in 2023 of 14.6 million units.
Review the entire NADA Market Beat report here: www.nada.org/media/8084/download?inline.
FBI Cyber Division Issues Updated Ransomware Guide
Ransomware is a form of malware designed to encrypt files on an electronic device, rendering them (and the systems that rely upon them) unusable. Malicious actors hijack the systems and demand a ransom in exchange for decryption. Businesses of all kinds and sizes have been victimized in recent years, and dealers are not immune.
The FBI Cyber Division, through the Multi-State Information Sharing and Analysis Center (MS-ISAC), which includes the Department of Justice, Cybersecurity and Infrastructure Security Agency, and National Security Agency, has issued a #StopRansomware Guide, which can be found here: www.cisa.gov/stopransomware/ransomware-guide.
The guide provides best practices, prevention checklists, and other steps that dealers could consider as part of their efforts to combat ransomware. The guide can also be found at www.ic3.gov and the internet crime complaint center, which contains additional guidance and resources. Dealers and their IT vendors should review this guide and consider applying these practices in dealerships.
NADA Show 2024: The Industry Event of the Year Takes Place February 1-4, 2024, in Las Vegas
The NADA Show and ATD Show are the largest and most prestigious automotive industry events of the year. They attract tens of thousands of attendees and feature prominent keynote speakers, educational workshops, dealer/manufacturer franchise meetings and more. Each Show also features hundreds of exhibitors offering cutting-edge products and services. Learn more about NADA Show 2024 here: www.nada.org/nada-show.
