100 Years! - Mada

Trouble viewing this message? View as Webpage CELEBRATING 100 YEARS OF SUPPORTING DEALERS LIKE YOU. MADA Fast Facts January 15, 2021 Vol. 23, No. 2 NEWSLETTER SPONSOR The original 1907 business card for a young Guy. S Garber. He was one of the original 13 Buick distributors, personally hired by William (Billy) Durant, founder of General Motors. Mr. Garber would later become the first president of MADA. (photo provided by Garber Management Group) 2021 OFFICERS thank you for serving! Specialized Dealer-ops Insurer Robust F&I offerings Side-by-side & virtual training F&I, Sales, Service Advisor Traditional F&I products & Vehicle marketing programs 6 Profit participation options unprecedented returns All products built, backed & administered by 1 source Stop the confusion. Eliminate the middleman. GO DIRECT. zurichna.com With 2020 now officially behind us, MADA would like to thank Mr. Steve Brown for serving as our 2020 association president. The "behind-the-scenes" effort this past year was more demanding than the average year! In addition to keeping his Petoskey dealership operating during a pandemic, Mr. Brown made himself available whenever the association needed his input, guidance and advocacy. We appreciate his commitment to dealers throughout Michigan and look forward to working with him in his final year on the executive committee, as he transitions into his role as MADA's immediate past president. continue reading below 2021 MADA Executive Leadership Team Each year, the MADA executive committee works closely with the MADA board and association staff to guide and advise on issues important to dealers. They communicate with their colleagues around the state, speak to government officials when regulatory topics require dealer involvement, help guide association policies and procedures, and stay informed on many other topics and issues. The support and involvement of these individuals is critical to the success of our association and helps us

maintain a positive and prominent presence in Michigan. Next time you have the opportunity to speak with the following dealers, please express your appreciation for their leadership. President Bill Perkins First Vice President Cliff Cicotte Second Vice President Chris Graff Immediate Past President Steve Brown MOTOR BELLA 2021 - AN OUTDOOR MULTI-SENSORY EXPERIENCE A New Mobility Event While NAIAS Pauses for 2021 The North American International Auto Show (NAIAS) announced it will not hold its 2021 auto show as planned. Instead, show officials revealed a “bridge to the future” with an auto-centric event called Motor Bella. The new event will bring nextgeneration mobility and exciting vehicle debuts to media, show-goers and the automotive enthusiasts’ world in a never before experienced way while also addressing continued COVID-19 concerns about indoor events. All-outdoor venue with track activities and a full complement of OEM and technology exhibits 1.6 million square feet of dynamic vehicle and technology display space including terrain ideal for showcasing off-roading capabilities 1.5-mile hot track on the grounds for technology and vehicle demonstrations Offers the sights, sounds and even the smell of all that the new world of mobility has to offer Motor Bella will be held from Sept. 21-26, 2021, at the M1 Concourse in Pontiac, often referred to as an “87-acre playground for auto enthusiasts.” AutoMobili-D, Tuesday, Sept. 21 through a half-day Thursday, Sept. 23 Industry Preview, Wednesday, Sept. 22 and a half-day Thursday, Sept. 23 Public Show, Thursday, Sept. 23 through Sunday, Sept. 26 A charity initiative will also be part of the six-day Motor Bella. COVID-19 Vaccines & Registration Schedule Most local Michigan health departments have moved into Phase 1B of the COVID-19 vaccine timeline (click here or see graphic below) and many are also scheduling vaccines for residents 65 . Guidelines differ from one county to the next so please refer to the health department in which you live or work to see the specific requirements. Some health departments also have a registration option to notify residents when they become eligible for the vaccine. View the Michigan vaccine webpage here for links to all local health departments (scroll down the page a bit). Please note that it is requested that individuals do not call their local health departments for information unless the department has listed a phone number on the page linked above.

Form 8300 Cash Reporting Customer Notification As part of the IRS cash reporting rule, on or before the January 31st following the calendar year for which the Form 8300 was filed, dealerships must provide a written statement to each individual who has been identified on a Form 8300. Therefore, for transactions that were reported to the IRS for 2020, it is necessary to inform any customer of the Form 8300 filing on or before January 31, 2021. This notification must include the name, telephone number and address of the dealership, the amount of cash that was received by the dealership and that the information has been reported to the IRS. Please note: The law requires written notification. Merely informing the customer at the time of the sale that you will be filing the Form 8300 is not sufficient. If you sent the customer the notice letter at the time of the transaction, you do not need to send a notice at this time. Click Here for a sample letter that the dealership can use to notify the customer of the Form 8300 reporting. Failure to send written notice to customers as specified above can result in civil penalties ranging from 250 to 500 per customer. The IRS recommends that businesses keep a copy of every Form 8300 it files and the required statement sent to each customer for at least five years from the date filed. NADA Issues Analysis of 2020 Auto Sales, 2021 Sales Forecast 2020 came to a close with new-light vehicle sales of 14.46 million units, down 14.7% compared to 2019 The National Automobile Dealers Association (NADA) issued its 2020 analysis of U.S. auto sales and the economy. “The coronavirus pandemic certainly impacted new light-vehicle sales in 2020, not to mention the U.S. economy as a whole,” said NADA chief economist Patrick Manzi. “Our

forecast at the start of 2020 estimated new light-vehicle sales would fall by one to two percent compared to 2019 for a total of 16.8 million units sold, but once COVID hit, we knew this would be a different year than anticipated.” 2020 came to a close with new-light vehicle sales of 14.46 million units, down 14.7% compared to 2019. Despite the lowest monthly SAAR on record of 8.7 million units in April, signs of the new-vehicle sales recovery began in the second half of the year as retail consumers returned to dealer lots. While the overall new-vehicle market fell by 14.7%, consumer retail sales only declined by an estimated 9%. Given a stronger than anticipated sales recovery, manufacturing facility shutdowns, and robust new-vehicle demand, most U.S. dealerships faced significant inventory constrains on popular models and popular segments during the second half of the year, including crossovers and pickups. By mid-summer, tight inventory meant that OEMs and dealers pulled back incentive spending. Coupled with consumer preferences for more expensive light-trucks, this pushed average transaction prices to record highs throughout the year. In March, the Federal Reserve slashed interest rates to the 0% to 0.25% lower bound, helping vehicle buyers. Keep reading here More from NADA: Virtual NADA Show, Feb. 9-11 Make new connections and enjoy games and entertainment at the receptions and happy hours Franchise meetings offer dealers prime opportunity to connect and ask OEMs Sneak peek to many of the features of the virtual NADA Show platform HEADLINES FROM THE INTERNET news and information you may find interesting Fire station, school among 8 Michigan workplaces fined. Michigan has issued eight workplaces, including a school district and fire department, citations totalling more than 25,000 for failing to meet coronavirus safety precautions. In another round of COVID-19 safety fines, the eight businesses were. Read more www.freep.com Michigan's Slow Economic Momentum is Not Wholly. Michigan’s economic activity is lagging that of most other states, but the state government has been able to manage its finances, balance its budget, and minimize fiscal stress. This is the finding of. Read more crcmich.org

Michigan Legislative News from MIRS Provided by the Auto Dealers of Michigan, LLC KEEP READING Snyder, Ex-State Officials Arraigned On Charges In Flint Water Crisis Detroit Chamber Calls Charges Against Snyder 'Incredulous' Revenues Are Going Up; Are Happy Days Here Again? Washtenaw County Decriminalizes Consensual Sex Work CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES Deadline Reminders Michigan: driver's licenses and vehicle registrations that expired on or after March 1, 2020 are valid until March 31, 2021. (See SB 73 ) Federal: while no longer mandatory, employers who voluntarily provide emergency paid leave to eligible employees (as though FFCRA had been extended) will continue to receive reimbursement from the federal government through tax credits and/or refunds through March 31, 2021. (See US DOL #104) NADA (Jan. 27) Protecting Your Dealership From Cyber Threats BCBS (Jan. 21) Stay motivated and keep your 2021 physical, mental and dietary goals on track with the weekly BCBS webinar chat. Register now for next week's 30 minute session . (Jan 21, 9-9:30 am) DADA invites dealers to a virtual legislative presentation. Q'd Up will begin with "The Berryman Top 5" from the Capitol, an update of 5 things you must know from Lansing, followed by a live interview and Q&A with Senate Minority Leader Jim Ananich. WHEN YOU REVIEW YOUR VENDOR RELATIONSHIPS. please consider some of the many companies that support our association The automotive sector is on the rebound, with OEMs and dealerships in all tiers working through recovery from the global pandemic that shook the market. Automotive retailers are adjusting to a “new normal” that’s here to stay as the industry transforms. Forward-thinking auto brands are staying two steps ahead of consumer expectations, changing the way cars are sold by rolling out innovative technology – both online and offline – and challenging the traditional dealer franchise system. Combined with maintaining ad spend and visibility, strategic auto dealers are successfully continuing to grow throughout the pandemic. Download this guide with key marketing learnings. Michigan Automobile Dealers Association www.michiganada.org Have a topic suggestion for a future newsletter? Send us your ideas.

Trouble viewing this message? View as Webpage CELEBRATING 100 YEARS OF SUPPORTING DEALERS LIKE YOU. MADA Fast Facts January 22, 2021 Vol. 23, No. 3 NEWSLETTER SPONSOR July 1936 Motor Age magazine ad featuring Snethkamp Auto Sales on Gratiot Ave. in Detroit. (Photo provided by Snethkamp Automotive Family. Click image to see full advertisement.) 21 FOR '21 Legal Update from Charapp & Weiss, LLP Specialized Dealer-ops Insurer Robust F&I offerings Side-by-side & virtual training F&I, Sales, Service Advisor Traditional F&I products & Vehicle marketing programs 6 Profit participation options unprecedented returns All products built, backed & administered by 1 source Stop the confusion. Eliminate the middleman. GO DIRECT. zurichna.com What a difference a year makes. Last year’s article, Twenty for ’20, was upbeat. It warned of challenges for dealers but noted that dealers’ resiliency would lead them to success because of the strength of the overall economy. We could not foresee how resilient dealers would have to be. Once the pandemic struck, dealers had to change to address limitations imposed at the federal, state, and local levels and dramatically different consumer behavior. keep reading below 2021 brings a new set of challenges It is not clear when the pandemic conditions will finally recede. The pandemic is not the biggest driver of challenges for 2021, however. The federal election results will have an enormous impact on dealers and will require them to change the way they have done business over the last four years. ELECTION FALLOUT. From 2008 to 2016, dealers dealt with significant changes in the way they had to do business because of federal mandates. The last four years saw a dramatic shift away from those mandates. Given the results of the 2020 federal

election, however, the 2008-2016 mandates are coming back, and dealers must know what they must do. 1. Use a Fair Lending Program . The last four years saw a change in emphasis on fair lending programs. Earlier, the Consumer Financial Protection Bureau had challenged dealer reserve practices. The CFPB actions were highly controversial and ultimately led to congressional disapproval of the CFPB’s attempt at regulation. To deal with the criticisms, the National Automobile Dealers Association developed a template program for fair lending. It requires a dealer to establish a standard starting point above buy rate for all customers, with downward deviations for non-discriminatory factors. Fair lending oversight at the federal level is returning. If you did not adopt a policy, or if you adopted one and stopped using it because of lack of emphasis by the Trump administration, take steps to adopt the NADA Fair Lending Policy. 2. Sale of Voluntary Protection Products. Before the inauguration of the Trump administration, the federal government was reviewing pricing practices for voluntary protection products such as extended service contracts and GAP. The regulators claimed that inflated pricing was evidence of credit discrimination, since one has to analyze the overall costs of lending for a vehicle buyer under credit discrimination laws. To answer the criticisms, NADA, along with the National Association of Minority Auto Dealers, developed a template program for sale of voluntary. Keep reading here for all 21 issues to consider in 2021, including more on election fallout, as well as: POST-PANDEMIC OPERATIONS. Dealers were consumed in 2020 by the pandemic. For much of 2021 they will face similar concerns. However, there will come a point when dealers need to look beyond the pandemic to see what changes will be permanent and how to adjust to those. FRANCHISE CHALLENGES. Vehicle manufacturers and distributors were not exempt from pandemic-driven changes. Changes undercut many assumptions that drive manufacturer policies, yet they will continue to insist on implementation of policies to achieve their goals. Additional resources from NADA (login codes required): Fair Credit Compliance Policy & Program A Dealer Guide to Federal Truth in Lending Requirements Voluntary Protection Products: A Model Dealership Policy A Dealer Guide to Federal Advertising Requirements Saturday, January 23, 11:00 am - 1:00 pm Planned outage for SOS MiLogin affects eServices On Saturday, January 23, 2021, there is a planned outage of MiLogin from 11:00 am to 1:00 pm for system upgrades. During this period, users will not be able utilize MiLogin to access their dealer eServices account. However, if an authorized user logs into their eServices account prior to 11:00 am they will be able to maintain account access. Please note, eServices is programmed to automatically log a user off after 30 minutes of inactivity. If a user selects anything on the eServices screen before 30 minutes has lapsed they will remain logged in. Failure to maintain activity on the eServices screen for 30 minutes or more will automatically log

the user off. The user will not be able to log back in until MiLogin is operational again, after 1:00pm. The state appreciates your understanding and apologizes for any inconvenience this may cause. Please contact the Business Regulation Section at BLRD@Michigan.gov with any questions you may have regarding the MiLogin planned outage. Seeking Input: are there other ways MADA can support your dealership? The COVID-19 pandemic forced some quick rethinking of business operations last year. We all learned a lot - what worked, what didn't, what we need to do differently. Now that business is getting back to whatever "normal" is, we ask you to reflect on your relationship with MADA. We'd like your feedback on what benefits of our service you have found really helpful. On the other end, what else could we do to bring more support to you and your team? We are completely open to your thoughts and suggestions - big ideas or small changes. We created this short, anonymous questionnaire to get your feedback. ALERT: Catalytic Convertor Theft A mid-Michigan dealer would like to alert MADA members that they recently had 10 catalytic convertors cutoff or attempted to be cutoff. The local authorities have been notified, but as you know, this is likely not an individual incident. These criminals tend to target multiple dealerships. Please contact MADA if you have questions. As always, thank you for keeping us informed so we are able to spread the news and hopefully minimize this activity. MADA Partners with BCBSM to Help Members Maintain Their Health Take charge of your health care plan Many people use the new year as a fresh start to implement healthy goals, which makes this a great time to check out the tools in your online BCBS account . (And remind employees of the available resources.) Find the right information to manage your health care plan and your health securely online. Use your Blue Cross member account to: Check your coverage, claims and out-of-pocket balance. Search and find an in-network primary doctor or specialist. Show your member ID card, and order more when you need them. Compare health care service costs* and doctor and hospital quality. *Cost estimates are available for most nonMedicare members. Don’t have an account? Regis

On May 19, 1921 the Michigan Automobile Trade Association was incorporated. In 1937 the association moved from Detroit to Lansing and changed its name to the Michigan Automobile Dealers Association. NEWSLETTER SPONSOR Specialized Dealer-ops Insurer Robust F&I offerings Side-by-side & virtual training F&I, Sales, Service Advisor