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March 31, 2016 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT

Inside this issue
Video: NADA Donates Delivery Van to Three Square Food Bank in Las Vegas
NADA Fights ‘Unintended Consequences’ with DC Efforts
Feeling Right, Lenders Fight Federal Regulator
VW Dealer Class Action Hinges on Make Meeting, Lawyer Says
NADA Releases Comprehensive Update to Dealer Tax Guide
Updates on the NADA Retirement Program from Empower Retirement
Top Stories
Video: NADA Donates Delivery Van to Three Square Food Bank in Las Vegas

 

NADA shows its support of the Las Vegas community, which has hosted the NADA Convention and Expo 15 times since 1965

NADA donated a new delivery van valued at $52,000 to Three Square Food Bank on March 29. “NADA’s donation will truly make an impact on our mission to reach more children who struggle with hunger in Southern Nevada. Their great partnership and generosity will touch the lives of many, and we cannot thank them enough for their support of Three Square,” said Brian Burton, president and CEO of Three Square Food Bank. The donation will have a direct impact on Three Square’s childhood nutrition delivery route, which include Kids Cafe and the BackPack for Kids programs. Three Square will also utilize the delivery van for its summer food service program, Meet Up and Eat Up, Burton added.

The 2016 NADA convention runs from March 31 to April 3 at the Las Vegas Convention Center. More than 23,000 new-car and -truck dealers and their managers, as well as dealers from 30 countries, auto industry executives and exhibitor staff will attend the NADA convention.
Source: NADA

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NADA Fights ‘Unintended Consequences’ with DC Efforts

The unintended consequence.

That’s what Jeff Carlson, the 2016 chairman of the National Automobile Dealers Association, said NADA is trying to prevent through its policy work in Washington, D.C. The Colorado Ford and Subaru dealer said many of the federal government’s regulatory and policy moves related to the car business have good intentions, but could end up hurting consumers. This plank of NADA’s platform was part of a wide-ranging emailed Q&A between Carlson and Auto Remarketing three weeks prior to the dealer association’s annual convention. “NADA’s policy engagement efforts all have a common theme — and that’s protecting consumers from the unintended consequences coming out of Washington, D.C., and informing other key stakeholders about the tried-and-true benefits of the dealer franchise system,” Carlson said when asked about NADA’s goals and focus for 2016.
Source: Auto Remarketing

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Feeling Right, Lenders Fight Federal Regulator

When you’re right, you’re right, American Financial Services Association President and CEO Chris Stinebert says while explaining why the automotive-finance industry is battling a federal regulatory agency. He believes his side is gaining ground in its ongoing fight with the U.S. Consumer Financial Protection Bureau, a creation of the Dodd-Frank Act of 2010. Stinehart tells why he thinks the tide is turning. But in explaining the financial community’s determination in the dispute, he tells an anecdote about a conversation he had with CPFB Director Richard Cordray. “He asked me, ‘Why hasn’t the industry changed more (on this issue)?’

“I said, ‘I’ve worked in Washington for 35 years. Usually when there is a (regulatory-driven) change, our members knew they had done something wrong. But here, the big difference is the industry doesn’t think it has done anything wrong. That’s why it is fighting so hard.’” At issue is the CFPB claim that an analysis it did showed auto-financing discrimination against minorities. The bureau says the alleged disparity stems from a practice of dealers adding extra percentage amounts to car-loan rates as compensation for acting as the middleman between lenders and borrowers.

The bureau wants to replace the so-called dealer-reserve compensation with flat fees. Critics of those say they would make lending less competitive and lead to higher consumer loan rates. An AFSA-commissioned study involving more than 8.2 million auto-financing contracts says data fails to support the CFPB’s disparity allegations of differences in the amount of dealer reserve charged to minorities and non-minorities. The study cites flawed methodology in the CFPB analysis. 
Source: WardsAuto

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VW Dealer Class Action Hinges on Make Meeting, Lawyer Says

A prominent dealer attorney says he is prepared to file a class-action lawsuit against Volkswagen on behalf of U.S. dealers who have sustained damage in the wake of VW’s emissions scandal. The attorney, Leonard Bellavia of Mineola, N.Y., says he has “a complaint already drafted. It’s just waiting on my desk.” Whether the lawsuit is filed depends on whether the company can reach a settlement with dealers that compensates them fairly for the financial impact of the emissions crisis, Bellavia said. VW executives are expected to discuss such a reparations proposal with dealers at a meeting Saturday during the National Automobile Dealers Association convention in Las Vegas. “My goal is that VW and the dealers can reach a settlement on amicable terms without the added distraction of litigation,” Bellavia said, noting that he and his clients would take action only after hearing what VW executives have to say at the NADA make meeting, if they do at all. He declined to identify his clients.
Source: Automotive News

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NADA Releases Comprehensive Update to Dealer Tax Guide

NADA released today an updated edition of A Dealer Guide to Federal Tax Issues. This edition provides a primer on 23 federal income tax topics affecting franchised new car and truck dealers along with current federal income tax thresholds.  

The updated publication covers such topics as dealer accounting methods, advertising expenses, bonus depreciation and section 179 expensing, cash reporting, employee v. independent contractor classifications, estate and gift tax, factory franchise agreements, insurance and reinsurance, a suggested records retention schedule, and UNICAP. 

The authors, Joe Magyar and Bob Zwiers of Crowe Horwath LLP, who also authored the prior edition of the same publication in 2006, have extensive experience advising dealers on federal income tax compliance.

Mr. Magyar will be part of a panel of dealer CPAs who will address the most salient federal income tax issues affecting dealers at the NADA convention workshop entitled “Explore Hot Tax Topics,” which will take place Friday, April 1, at 10:30 a.m. (N202) and Saturday, April 2, at 10:15 a.m. (N103). 

NADA members can click here to access A Dealer Guide to Federal Tax Issues. (Once logged in, click the “Continue” button to access the guide.)
Source: NADA Regulatory Affairs

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Updates on the NADA Retirement Program from Empower Retirement

The NADA Retirement Program from Empower Retirement is adding new features every day!

Several enhancements have been introduced to ease administrative tasks and prepare your employees for retirement using state-of-the-art features. Get the details here:

If you haven’t already joined the program and you are interested in learning about our retirement plan enhancements, visit the new website - www.nadaretirement.com - which is rolling out during convention. Stop by the NADA Pavilion, booth 501C, to learn how the NADA Retirement Program is working for you and your employees!
Source: NADA Retirement Program
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