New York State Automobile Dealers Association
P.O. Box 7347 Albany, NY 12224-7347 • 518.463.1148 phone • 518.432.1309 fax • 800.916.9723 toll free • www.nysada.com
New York State Founded in 1923 as the Empire State Automobile Merchants Association and renamed in 1943, the New York State Automobile Dealers Association actively represents nearly 1200 franchised new car and truck dealers in New York State. The association is dedicated to providing the highest quality service in the areas of education, insurance and legislative and regulatory matters for New York dealers. NYSADA, the statewide advocate for franchised dealers, is committed to promoting and maintaining a competitive automotive industry for our members across the Empire State.
For dealers in New York State, NYSADA’s Annual Convention and Business Meeting is the one, must attend meeting that should not be missed. During past annual meetings, the highest-level manufacturer executives have enlightened attendees on: the prevailing climate for automobile retailing, the future of certain franchises, manufactures’ restructuring, increasing operation profits, and on and on. We expect the same caliber of participation by factory representatives this year. Dealer after dealer has expressed the inestimable value of face-to-face talks with fellow dealers from across the state. In order to meet the challenge inherent in the day-today operation of a new car or truck franchise, there may be no better investment of your time and resources than NYSADA’s Annual Convention and Business Meeting.
What more perfect setting to become informed and relax with your family and friends than the Ritz-Carlton, Naples? Join NYSADA at this magnificent resort November 19-23 and experience all the first-class amenities that only a Ritz-Carlton can provide. Enjoy dazzling views of the Gulf of Mexico, warm golden sunsets and three miles of pristine beach. Choose from seven unique restaurants, a luxurious world-class spa and pool and beach activities; including a wide selection of water sports.
Only three miles away, accessible by convenient hotel shuttles, is the Ritz-Carlton Golf Resort. It is home to a pair of 18-hole Greg Norman signature golf courses at Tiburón that hosts the PGA TOUR Merrill Lynch Shootout.
The Ritz Kids area is a Nature’s Wonders sanctuary where guests are immediately transported to another world. The sanctuary is complete with seven aquariums, including two touch tanks where guests can hold live turtles and starfish.
On behalf of the New York State Automobile Dealer Association’s Convention Committee, officers, directors, and staff , we encourage you to join us for this very special event on Florida’s Paradise Coast. As always, the Convention Committee is working diligently to produce a unique and fun-filled event along with daily information-packed programs that you will not want to miss. Those who regularly attend NYSADA conventions will be intrigued to see how the Convention Committee once again met the challenge of topping the Association’s prior years’ meeting. First-time attendees will question why they ever missed such a cordial and informative event in past years.
After reviewing this convention brochure, please select a payment option, print out and complete the registration form and return it to NYSADA as soon as possible. For your convenience, you may opt to utilize our easy-payment plan and remit payment by either check or credit card.
We are looking forward to having an extraordinary convention in Naples, Florida with all our dealer friends from across New York and sincerely hope that you will join us.
NYSADA Convention Committee: Michael Caruso, Howard Kuperman, Charlie Morris and Bob Vancavage
Senate/Assembly Pass Landmark
Legislation To Enhance Dealer’s Franchise Protections!!!
On June 24, 2008, months of hard work culminated in the Dealer Franchise Reform Act being unanimously passed in the Senate 61-0 and in the Assembly 122-0. This bill highlights the ability for dealers and factories to work out their differences to produce meaningful legislative changes. This bill also demonstrates how NYSADA, GNYADA, ENYCAR, SADA, RADA, and NFADA can all work together with their dealers to produce a tremendous grassroots effort through letters and one-on-one meetings to achieve success.
The bill includes significant, consequential new protections and benefits for franchised dealers. The following is a condensed version of the important new changes:
Definition of “Franchise”
• Expands the definition of “franchise” to include peripheral or side agreements between franchisor and dealers.
Definition of “Relevant Market Area”
• Creates a “relevant market area” of 6 and 10 miles for counties above and below 100,000 people, respectively, for purposes of defi ning a territory around the dealership which provides some protection from a unilateral addition of a same linemake dealer by the franchisor.
Definition of “Termination”
• Creates a defi nition of termination in order to comport with the termination provisions in later sections.
Definition of “captive finance source”
• Creates a definition for “captive finance source” in order to comport with later provisions restricting franchisor use of their captive finance companies.
Prohibition on Monetary Participation in Training Program
• Prohibits unreasonable demands for dealers to participate in training
programs unless tied to unique aspects of a new model or similar item.
Limits on Changes to Facility as Precondition to Renewal of Franchise
• Requires franchisor to commit in writing that the dealer is expected to have sales increases suffi cient to support the enhancement of the dealership facility.
Enhancement of Termination Protections
• Provides in the case of a discontinuance of a franchise agreement due to a change in franchisor or distributor shall require that existing dealers either be offered a substantially similar franchise agreement from the new franchisor or distributor, or compensate the dealer the fair market value of the franchise.
Protest of Franchise Termination
• Provides a stay of any termination which is protested by a dealer.
• Sets out the issues to be considered in an action challenging a franchise termination to include factors to be examined in determining “due cause” and “good faith.”
• Provides a 180 day cure period which the dealer shall have to correct alleged sales and service deficiencies.
• Provides a dealer the continuing right to sell the franchise until a fi nal determination is made as to the appropriateness of the termination.
Restrictions on Sales Incentive Programs
• Requires the franchisor to present the terms of the incentive program in clear and concise terms.
• Requires that the incentive program be “reasonably available” to each dealer considering each dealer’s individual circumstances so as to prevent discrimination.
Restrictions on Parts/Accessories Incentive Programs
• Requires the franchisor to present the terms of the incentive program in clear and concise terms.
• Requires that the incentive program be “reasonably available” to each dealer considering each dealer’s individual circumstances so as to prevent discrimination.
Prohibition on Interference with Inventory Financing.
• Prohibits the franchisor from preventing a dealer from altering the means by which the dealer finances its vehicle inventory to include not utilizing the franchisor’s captive finance company.
Clarification of Requirements for Franchise Transfers
• Requires that the dealer make a written request to the franchisor for approval of the transfer.
• Limits the franchisor to consideration of the proposed transferee’s (i) moral character; (ii) general business experience; and (iii) financial capabilities.
• Requires that the franchisor respond within 30 days of receipt of transfer request. Restriction on Application of Foreign Laws
• Brings consistency to the treatment of new, existing and renewed franchise agreements in regard to a prohibition against the application of other states’ laws to a dispute arising between the dealer and franchisor.
Restriction on Franchisor Ownership of Franchise
• Clarifi es existing law by creating a presumption that a reasonable time period for a franchisor to own and operate a dealership is no more than eight years.
Right to Protest Add Point/Relocation
• Creates a relevant market area provision which provides a means by which a dealer may challenge the addition or relocation of a new dealership to within a relatively small radius surrounding the existing dealer’s location.
• Creates a list of criteria to be considered in determining the appropriateness of the addition or relocation into an existing dealer’s relevant market area which take into consideration the interests of the existing dealer, the franchisor and the public.
Restriction Against Unreasonable Denial of Relocation
• Prevents a franchisor from unreasonably denying a dealer’s request to relocate his dealership location within his or her relevant market area.
Reimbursement for Loaner Vehicles
• Requires a franchisor to reimburse dealers for the cost of loaner vehicles where the franchisor’s policy is for the dealer to provide loaners to service customers.
Sale of Retail Installment Contracts
• Prevents a franchisor from coercing a dealer to utilize the franchisor’s captive fi nance company in financing customer purchases.
Restriction on Unilateral Modifi cation of Franchise
• Prohibits a franchisor from adversely altering the rights and obligations of the dealer under the franchise without providing 90 days notice.
• Allows the dealer to protest any such adverse change in the franchise.
Procedures Relating to Performance Standards
• Restricts a franchisor’s ability to make participation in various pre-owned vehicle purchase programs contingent upon the dealer meeting minimum new car sales responsibilities.
Procedures Relating to Performance Standards
• Prohibits a franchisor from using an unreasonable sales performance standard in judging a dealer’s performance.
• Requires the franchisor to provide to the dealer in a clear and concise manner the underlying formula used to arrive at the dealer’s sales performance target.
Procedures Relating to Warranty and Sales Incentives
• Clarifies that a franchisor is to reimburse its dealers for the performance of warranty work at the dealer’s retail rate charged for nonwarranty work.
• Establishes a specifi c formula by which a dealer is to support the calculation of its retail rate on nonwarranty work.
• Restricts the franchisor from auditing a dealer’swarranty and sales incentive claims submissions beyond 1 year or, in the case of fraud, 2 years.
• Requires the franchisor to explain any proposed chargeback of warranty or sales incentive payments previously made to the dealer.
• Provides the dealer the ability to protest anychargeback.
• Provides a stay of the proposed chargeback until theprotest is heard.
• Places a reasonableness standard upon the basis forany proposed chargeback.
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If you have any questions please contact: Ed Richardson at 518.463.1148 (ext. 210) or Bob Vancavage (ext. 204).
The Equal Credit Opportunity Act (ECOA) applies to all creditors, and a dealership is typically defined as a creditor if it regularly participates in the decision of whether or not to extend credit, which may include: Signing a retail installment sales agreement before sending it to a finance source, deciding whether or not to to send a customer’s credit application to a lender, being involved in restructuring the terms of sale, and setting the APR regarding sales. more...
topThe Administrative Hearing Bill will take effect on February 26, 2008 and provide the following protections:
Besides the Administrative Hearing Bill, NYSADA worked for and against a number of other bills of interest to franchised dealers in 2007. These included:
Insurance for rental vehicles: A.192 Gantt/S.5301 Seward. NYSADA strongly opposed this bill. This bill, which would not otherwise been of concern to NYSADA, includes a provision that would restore vicarious liability to vehicles rented for less than one year if the rental company does not provide notice to the State Insurance Department that the vehicle was insured for the amounts set forth in the legislation.
Sale of salvaged air bags: A.7555 Destito/S.4719 LaValle. NYSADA has opposed this legislation, which is intended to create a mechanism for the sale and reuse of recycled air bags. NYSADA has been concerned that easing the rules for the sale of recycled air bags will lead to increase theft of the bags, and pressure on dealer operated body shops to install recycled bags rather than new ones.
Repair shop restrictions: A.48 Lafayette. NYSADA has opposed this legislation that would establish a repair shop complaint process within the Department of Motor Vehicles. Complaints would have to be made within 90 days or within 3,000 miles of the repair, or within 30 days of the discovery of an allegedly faulty repair, if, in the Commissioner’s judgment, the defect could not reasonably have been discovered within 90 days or 3,000 miles. Complaints ultimately could be made up to six years from the date of the repair.
Cancellation of sales contracts: A.343 Pheffer/S.5072 Fuschillo. NYSADA opposes this legislation that would allow a consumer purchaser to cancel the contract of sale within three days of signing. Delivery could be delayed until after the three days have elapsed. A purchaser could sign a written statement to waive this right in order to obtain immediate delivery of the vehicle.
Cancellation of sales contracts: A.346 Pheffer. NYSADA has actively opposed this legislation to permit consumers the right to cancel a motor vehicle sales contract within one day in the case of a sale or lease.
Restrictions on SUVs: A.49 Lafayette. NYSADA opposed this legislation, which would require any vehicle having a gross weight greater than 6000 pounds to be registered as a commercial vehicle. The vehicles would then be banned from the State’s parkways, and could be restricted by the City of New York.
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