Sometimes, new vehicle dealers want to spice up the new vehicle inventory using non-OEM items such as bed liners, tires and wheels, lift kits, and other modifications. Any modification of a new vehicle using non-OEM accessories or parts may pose complex issues for a dealer. Whether a dealer should modify its vehicles will require research
Exporter Sues to Challenge Non-Export Requirements
Most franchisors impose requirements on dealers to prevent sales of new vehicles for export. U.S. franchisors contend these limitations are necessary because their rights to distribute vehicles are limited to this country, and any dealer sales for shipment to other countries will cause a violation of contractual limitations. Many manufacturers regularly review port export reports,
Be Careful: That Unusual Request for a Credit App may be Legitimate
Have you ever had a request by your provider of credit reports to produce a copy of a signed credit application to justify your request for the report? If so, you probably thought it was bogus. You may have thought it was a scam artist, or an identity thief, or even the customer’s brother in
Downpayments – Does your Policy match your Master Agreement Requirements?
If a customer must stretch to come up with a downpayment by using a credit card or a hold check, does that pose a risk for your dealership? Apparently more than many dealers realize. A dealer’s master agreement with a finance source contains numerous representations and warranties, including assurances about the downpayment. If a customer
The Blind Leading the Sighted
What do you call it when people who know little about an industry insist on telling those who know a lot how the industry should operate? In the federal government, it is called “business as usual”, and it’s exactly what is going on with the Consumer Financial Protection Bureau’s efforts to regulate car dealer financing.
Short Cuts March 2013
FTC Requests Public Comments on Used Car Rule Revisions On December 4, 2012, the FTC sought public comment on proposed changes to the Used Car Buyers Guide required by the Used Car Rule. In effect since 1985 and last amended in 1995, the FTC has concluded that the Rule benefits consumers and will be retained.
Credit Card Surcharges
In recent weeks, dealers have been excited by the news headlines that businesses can begin surcharging their customers for credit card purchases. Credit card issuer rules have always been a thorn in the side for dealers in vehicle sales. “Can we add a surcharge?” “Can we limit the amount charged?” No federal law has prevented
Trust but Verify
When asked for the one piece of advice to give to a dealer on franchise relations, President Ronald Reagan’s often repeated phrase that characterized his relations with the Soviet Union is a good choice – “Trust but verify.” A cordial, professional rapport is important to the franchisor/franchisee relationship. But, a franchisor will always operate in
Lucky 13 in ’13
Oh, what a difference a few years make. In late 2008, many auto pundits lamented that we might never again see sixteen million annual new vehicle sales. Proving that their memories are as faulty as their predictions, in 2012 they told us that, just like they always expected, sixteen million annual sales are on the
Federal Government Update
“WE’RE FROM THE GOVERNMENT … AND WE CONTINUE TO HELP!” Employee versus Independent Contractor We have written frequently about classifying workers as independent contractors. The government wants people who work for you to be classified as employees. Why? You withhold taxes; They are eligible for benefits including health insurance for those who work sufficient hours;