Canadian Technician March 2012

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TaxTime

Keeping Revenue Canada happy without all the stress

Publication Mail Agreement #40063170. Return postage guaranteed. Newcom Business Media Inc., 451 Attwell Drive, Toronto, ON M9W 5C4

ALSO:

■ Resolved: That OE service procedures be considered standard.

■ Understanding GM evap system leak-checks ■ How the latest scan tool trend could help your pocketbook

MARCH 2012

WWW.CANADIANTECHNICIAN.CA

Snap-on Snap on is a tr ttra r demark ark of S Snap-o ap-on n Incorp Incorporat orated. ed. © Snap-o Snap-o p- n Incorp Inco orat ra e ed 2012.

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D O N ’ T F E A R T H E U N K N O W N.

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contents

Canadian Technician • March 2012 • Vol. 11 No. 2

FEATURES Tax Time......................................................................... 19 Settling up with Revenue Canada doesn’t have to be stressful. We’ve got a few tips on how to keep your numbers straight and your tax bill low.

Evap Testing .................................................................. 22 Jeff Taylor explains how GM’s evap system self-checks for leaks. Knowing the procedure will help you diagnose evap issues.

COLUMNISTS It’s Your Turn By Allan Haberman .................................... 12 Management S.O.S. By Kelly Bennett ............................. 15

The Car Side

By Rick Cogbill

30

22 DEPARTMENTS Service Notes................................................. 5 Letters ............................................................ 6 Out & About.................................................... 9 Eye Spy......................................................... 11 Products........................................................27 Ad Index ........................................................29

Our new international calling card. by

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P R E M I U M C ATA LY T I C C O N V E R T E R S

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CATALYTIC CONVERTERS

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SERVICE NOTES

We need more thought leaders Negativity is hurting this industry and it’s time someone called attention to it.

It needs to stop.

I

NUMBER 2

451 Attwell Drive, Toronto, Ont. M9W 5C4

By Allan Janssen

was talking to a technician yesterday who, completely unsolicited, sighed and offered the following observation: “Man, this industry sucks!” He slipped it in toward the end of our conversation, as if this is how he regularly wraps up phone calls. “This industry sucks.”

There is a lot of negativity in this industry. I hear it all the time and, quite frankly, it is hurting our industry.

It damages our reputation and makes it harder to recruit new talent. It needs to stop.

Now, I know that negativity in the workforce is nothing new. Millionaire hockey stars and Hollywood actors will whine about their lot in life, given half a chance. It’s natural, I suppose. But it’s not healthy.

I was, for a while, the editor of a trade magazine for truck drivers, and I had to deal with a lot of negativity there too.

It seemed to be mixed with confusion about why their fortunes have fallen so dramatically. It wasn’t that long ago that driving long haul was the ideal job for free-spirited mavericks with a taste for the open road. Now a lot of drivers feel like prisoners in their own cabs.

Well, I can tell you that some technicians feel trapped too. Trapped by stagnant wages, demanding customers, the rising cost of tooling up, the relentless need for skills upgrading, burdensome environmental laws, meddlesome governments, and a searing lack of respect from the general public.

But I also know there are technicians who love their jobs, love the industry, and love coming to work every day.

When I talk to them, I get energized. It is infectious.

In January, I met three technicians at the Worldpac training expo in California, who were like kids in a candy store.They made a big impression on me

VOLUME 17

because they were excited about their jobs. They soaked up the training and couldn’t wait to get back home to put what they’d learned to use.

Perhaps even more surprising was the way they spoke about their bosses – the shop owners who had sent them for training. They never once used the term “ESO,” which apparently stands for “evil shop owner” and is frequently found on technician forums.

There was no grumbling or frustration.

On the contrary, they all had stories that demonstrated the mutual respect that exists in their work places. All three had been asked to take over running the shop during personal crises in their boss’s lives.

All three rose to the challenge and added some management skills to their resumes.

These guys are not trapped or demoralized. They are not nay-sayers. They are true leaders in this industry. Thought leaders. Attitude leaders.

Every once in a while, when I’m talking to industry folks, we play the game, “If you could change one thing about this industry, what would it be.”

Truthfully? I would wish for rampant optimism among technicians. I would wish for positivity and confidence.

Think of all the cars out there that need to be maintained. Think of all the customers who rely on us to do what they cannot. Anyone with a head for mechanics and electronics will always be in high demand.

This industry has its challenges, and I’m as frustrated by the slow progress in dealing with them as anyone. But it doesn’t suck. Opportunities are everywhere. And the best way to find them is to start with a positive attitude.

Otherwise you’re beaten before you even start.

You can reach me at allan@canadian technician.ca

EDITOR Allan Janssen allan@canadiantechnician.ca (416) 614-5814 PUBLISHER Martyn Johns mjohns@newcom.ca (416) 614-5826 CIRCULATION MANAGER Lilianna Kantor lkantor@newcom.ca (416) 614-5815 DESIGN & PRODUCTION Tim Norton production@canadiantechnician.ca (416) 614-5810 GENERAL MANAGER Joe Glionna PRESIDENT Jim Glionna PUBLISHED BY Newcom Business Media 451 Attwell Drive Toronto, Ont. M9W 5C4 Canadian Technician is published monthly except for January and July by Newcom Business Media, Inc., 451 Attwell Drive, Toronto, Ont. M9W 5C4. The magazine serves the Canadian automotive repair and service industry. Subscriptions are free to those who meet the criteria. For others: single copy price: $5.30; one-year subscription in Canada: $42.00 ($40.00 plus applicable taxes); one-year subscription in U.S.: US$60; one-year subscription in all other countries: US$90. Copyright 2012. All rights reserved. The contents of this publication september not be reproduced by any means, in whole or in part, without prior written consent of the publisher. The advertiser agrees to protect the publisher against legal action based upon libelous or inaccurate statements, unauthorized use of photographs, or other material in connection with advertisements placed in Canadian Technician. The publisher reserves the right to refuse any advertising which in his opinion is misleading, scatological, or in poor taste. Postmaster: Send address changes to Canadian Technician, 451 Attwell Drive, Toronto, Ont., M9W 5C4. Printed in Canada. Second class mail: Postage paid at Toronto. Canadian Publications Mail Sales Agreement #40063170. ISSN 1710-7644.

We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund (CPF) for our publishing activities.

Kenneth R. Wilson Award Winner Member

Canadian Business Press

Tax Time

By Wayne Moore • (905) 632-8770

MARCH 2012 CANADIAN TECHNICIAN

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LETTERS what was done to repair the issue, but it also becomes a reminder for both on the next visit. It could be your best tool in your box if used correctly!

M. Remualdi Mario’s North York, Ont.

INVOICES ARE ALSO A GREAT RESOURCE

WHERE IS OUR RESPECT? I was recently in hospital for some testing and my doctor told me I needed a procedure that might or might not help with my symptoms. And, by the way, the procedure wouldn’t be covered

by B.C. health, so it would all have to be paid for out of my own pocket. It got me thinking about why it seems to be OK for a medical doctor to expect people to pay for something that might or might not work. If it doesn’t work, you can bet, they’ll come up with another idea that we should try, and it might cost us even more money.

The more I thought about it, the angrier I became. Because if we told a customer we were going to charge them to try something that “might or might not” fix their car, they would go ballistic and call us crooks. The general public expects us to diagnose their extremely complex and ever-changing vehicles with 100-per-cent accuracy. The human body hasn’t changed in thousands of years, yet highly educated doctors aren’t expected to be precise in their diagnoses.

In fact, they can take a wild guess when they don’t know the answer. And if it costs us money, well, that’s just too bad.

And that’s not where the unfairness ends. Think about how our customers expect to be serviced immediately, without any delays when they show up with or without warning. Yet even with an appointment, you will be expected to 6

CANADIAN TECHNICIAN MARCH 2012

wait in a doctor’s office until you can be seen. A wait of an hour seems to be accepted as normal practice.

When is the world going to realize we are highly trained specialists who have to read up on, understand, and put into practice more new procedures every year than a brain surgeon. Rather than getting respect for our skills and years of continual training, we are considered crooks, stupid grease monkeys, and the scourge of the earth.

Thanks for letting me vent!

Tom Hines Fountain Tire Richmond, B.C.

SERVICE HINTS WERE RIGHT ON! Absolutely great article on service advisors (December 2011). It was right on! After 40 years in this career, I’ve learned to use all of those hints at one time or another.

Helmuth Slisarenko Guelph Brock Road Garage Guelph, Ont.

INVOICES COULD BE MOST IMPORTANT TOOL IN YOU BOX I strongly agree with Bruce Eccles on the importance of a well-written invoice (December 2011). It is equally as valuable to the shop as it may be to the customer. It is a document in which you not only explain what you found and

Bruce, you are right on! Always give as much detail as possible. Many, many times we’ve been asked to recreate an expense report for a client for tax purposes. Try to do that with handwritten invoices. You’re only fooling yourself if you think it’s worth trying to hide income by not having a proper invoicing system.

- Comment on www.canadiantechnician.ca

GOOD INVOICES IMPRESS CUSTOMERS What a great article. Depending on the type of client you market to, or who visits your establishment, you cannot diminish the importance of good grammar, spelling, and the proper entry of customer name, address and phone information on your invoices.

If you think these things don’t matter, you’re sadly mistaken. And having the viewpoint that, “Hey I’m a technician, not a school teacher!” certainly won’t impress anyone, especially not those with higher education. Generally speaking, these are the customers that have the financial means to become your most lucrative customers.They are usually interested in forming long-term relationships of trust. Over time, when they’re presented with vehicle needs found on inspection, they’ll simply say, “Go ahead.”

These customers are the gravy in your shop. Take full advantage of every invoicing detail possible and you will impress your customers.

- Comment on www.canadiantechnician.ca

How to reach us We love to hear from our readers. Please send along your opinions to editor Allan Janssen at allan@canadiantechnician.ca.

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Now, We Do It All!

Valvoline® now offers a full line of Valvoline Professional Series automotive service chemicals. With Valvoline Professional Series, you get a comprehensive line of professional-grade products, services and solutions all backed by industry leading marketing programs.

Valvoline Professional Series delivers maximum value to consumers and helps grow your bottom line. ©, 201Ó, Ashland Canada Corp.

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OUT & ABOUT

OEM procedures are industry standards: NATA The National Automotive Trades Association of Canada (NATA) has acknowledged that repair standards suggested by original equipment manufacturers should be considered industry standards.

In a press release, NATA said most repairers assume the repair procedures suggested by original equipment manufacturers are standards by default, but it has never been officially established.

The associations cautioned, however, that repair procedures constantly change and develop. A joint position statement from the associations reads, in part: “Whereas we acknowledge the OEM repair procedures are incomplete in comparison to the full scope of vehicles and repair operations which exist in the marketplace, the OEM published repair procedures shall serve as the baseline for industry repair standards, with the recognition that further development of procedures will be necessary in areas

not covered by published procedures.”

NATA and its affiliate associations have now joined with other major associations in the United States and Australia in acknowledging as much.

Signatories with NATA include the Automotive Retailers Association of British Columbia (ARA-BC), the Automotive Service and Repair Association (ASRA), the Automotive Trades Association of Manitoba (ATA Manitoba), the Hamilton District Autobody Repair Associatino (HARA), the Automotive Aftermarket Retailers of Ontario (AARO), the Collision Repair Association of Nova Scotia (CRANS), the Automotive Recyclers of Canada (ARC), and the Saskatchewan Association of Automotive Repairers (SAAR).

Other associations signing on to this statement include 22 U.S. state associations, as well as the Alliance of Automotive Service Providers , the Automotive Service Association, the Society of Collision Repair Specialists and the Assured Performance Network.

Check out our new podcast We’ve created a new way for you to enjoy Canadian Technician. Now you can listen to it on your computer or MP3 player, whether you’re in your car on the way to work, in your office, or under the hood of a car.

Canadian Technician: In The Shop is a brand new podcast – a 30-minute radio show designed to entertain and educate.

And we’d like to include your views on upcoming shows, so we’ve set up what we’re calling The Newcom Hotline. Just call 1-866-222-6787 and you can leave a voice message that could make its way onto the podcast. Tell us what you thought of the show, give us your view of things, or leave a helpful hint for other listeners.You can be part of Canadian Technician: In The Shop.

We’re really excited about this new way of sharing what’s new in the automotive repair and service industry… and we hope you enjoy it.

Check it out at http:// tinyurl.com/CT-Episode01

MARCH 2012 CANADIAN TECHNICIAN

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OUT & ABOUT

Federal-Mogul launches mobile training Federal-Mogul is taking its automotive training courses on the road, offering educational opportunities throughout Canada and the U.S. The company, which has trained more than 200,000 technicians in the last decade at its St. Louis, Mo,Technical Education Center (TEC), will now take technical training directly to technicians through a fleet of mobile training units.

Federal-Mogul says the “Market Connect” training program is designed to make training more accessible and affordable, and will offer a competitive advantage to its customers.

One of the advantages will be less time away from the shop and greater return on investment for technicians and shop owners, says Paul Johnson, vice president, Federal-Mogul North American Aftermarket.

The mobile units will be centrally scheduled and dispatched over several

geographic territories throughout the U.S. and Canada.

The company plans to deliver core training to technicians using “experiential, on-site instruction and new webbased and virtual training technologies.”

The mobile training units are part of a broader strategy of bringing turnkey training services to the market, increasing curriculum penetration and maximizing customer value by delivering the best possible Federal-Mogul customer experience. The fleet will leverage and supplement the FederalMogul TEC as well as its online class offerings and technical hotline to bring Federal-Mogul training and innovations directly to the technician in the most efficient manner possible, raising training ROI for the installer community.

Federal-Mogul Corporation is headquartered in Southfield, Mich., employing approximately 45,000 people in 35 countries.

EYE SPY

The attached photo is from a Chrysler Caravan.

The customer was complaining of a loud noise from his exhaust! After consulting with the customer and bringing the issue to his attention he then remembered that two years ago the temporary fix was performed on the side of the road! Well, I guess it does pay to use factory parts (the metal ruler has a Chrysler emblem on it)!

Chris Sullivan, Tire Craft, Windsor, N.S.

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MARCH 2012 CANADIAN TECHNICIAN

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IT’S YOUR TURN

Scan tool decisions

The latest trend toward software-based tools is going to change the way you think about what equipment you need to own, and what you can lease

By Allan Haberman

D

o you need a factory scan tool or an aftermarket scan tool?

The debate has been going on for as long as there have been scan tools.

In fact, the debate raised its head in these very pages and on the Canadian Technician Forum not so long ago.

Maybe it’s time to look at the questions you need to be asking yourself when it comes to tooling up with the latest diagnostic equipment.

Would an aftermarket scan tool provide all the data and test capabilities you need to accurately diagnose and repair your customers’ vehicles? Would a factory scan tool make the process easier and or faster? What functions do you need to have? Data PIDs? Bi-directional testing? What cars do you work on? Is it a pretty even mix, or does it lean toward one or two manufacturers?

Is versatility a key skill for you, or are you ready to specialize?

There is clearly a lot to consider before making such a major investment.

One trend that is going to have a big impact on your decision is the move away from hardware-based tools towards software-based tools.The elimination of hardware has significantly reduced the cost of these factory scan tools.

Today, many tools require a customer-supplied PC or laptop to run the software and a VCI or Vehicle Communications Interface. When you purchase the scan tool, you receive the VCI and required cables as well as a disc with the software on it and a subscription to the vehicle manufacturer’s website. The software turns your computer into a factory scan tool, which communicates with the vehicle through the VCI. The subscription to the manufacturer’s website allows you access to factory information, including updates for the scan tool functions, 12

CANADIAN TECHNICIAN FEBRUARY 2012

factory wiring diagrams, and TSBs, as well as the ability to reprogram or reflash modules. A lot more too, in most cases.

Some manufacturers now offer their factory scan tool on a short term basis.

Instead of purchasing a VCI and software you can use your own J2534 interface to replace the VCI. You still need to purchase the software but it’s available on an as-needed basis.

Here’s how it works. You purchase a subscription to the manufacturer’s website and download a piece software.

This software stays on your computer and becomes your link to the scan tool.

Once the software has been loaded, you can access the scan tool software on the website. This turns your computer into a virtual factory scan tool that communicates with the vehicle using a J2534 pass through device. (This is the same device used to reprogram or reflash vehicles when an update is required and your shop may already have one.)

The scan tool is functional only while you are connected to the website with an active subscription. If you lose your Internet connection or your subscription expires, the scan tool function is also lost. The advantage to this system is that you can purchase the scan tool when you need it for as long as you need it.

If you don’t service a certain make of vehicle regularly but occasionally require a scan tool, you can purchase a short-term subscription and access the scan tool. Subscriptions are generally three days, one month, or one year, although terms may vary depending on manufacturer. For example one manufacturer charges $55 for three days and $1095 for a full year. This is an affordable option for purchasing a factory scan tool, when available.

I believe as more manufacturers adopt software-based scan tool technology, the trend towards J2534based tools will also increase. This will allow more technicians to have access to factory-level diagnostic tools.

For more information on factory scan tools and subscription costs go to www.nastf.org and click on the Information Access Charges and Tools Matrix links.

Allan Haberman is with Blue StreakHygrade in Winnipeg, Man. He is also a member of the Canadian Technician Advisory Panel.

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MANAGEMENT S.O.S. IN THIS SERIES OF FICTIONAL LETTERS FROM A NEW SHOP OWNER TO HIS FORMER BOSS, MANAGEMENT TRAINER KELLY BENNETT DISCUSSES BASIC BUSINESS PRINCIPLES THAT APPLY TO THE AUTOMOTIVE REPAIR INDUSTRY.

TO HIRE OR NOT TO HIRE THERE ARE A LOT OF FACTORS THAT GO INTO EXPANDING YOUR STAFF. GETTING THE RIGHT INFORMATION ABOUT YOUR BUSINESS IS THE FIRST STEP.

DEAR EROL:

DEAR KELLY: I’m in the process of hiring another technician… mainly because my existing techs can’t keep up with the car count.

Quite frankly, we’re getting really good at “rack ’em and stack ’em” management because we have so many carry overs on a daily basis. But I’m concerned I’ll be overloading our current advisor. She doesn’t have any free time during the day.

And if I have to hire another one, the economics might not make sense.

I’m trying to do some number crunching to determine how much I would need to increase my sales to pay those wages.

The last thing I want is to end up making less net profit.

Please help. All of this is starting to keep me awake at night!

—Erol

I figure that every time you bring on a technician, you’re half way to needing another advisor. Ideally, the ratio should be one service advisor for two technicians. In your case you have two techs and so you’re right, bringing on a third is definitely going to overload your advisor – especially with your car count.

There are a few options you may want to consider.

When you hire anther technician, you could hire an assistant service advisor. That’s someone who can help support the advisor by handling the bulk of the phone calls, estimating, parts ordering, and counter time during the morning drop off and afternoon pick up. That would be less costly than hiring a second advisor. We had a group member do this, and they allowed the advisor to interview the candidates and choose their own assistant. It worked really well.

Or you could take the hybrid approach. Not all shops can afford the extra wage of a full-time parts person.

But they can hire someone to be a service advisor during the crunch times and handle parts ordering the rest of the time. The timing works. Since they’re on the counter in the morning, they have a better handle on what is needed

MARCH 2012 CANADIAN TECHNICIAN

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Larry Dickison

MANAGEMENT S.O.S.

for the work and they can segue nicely into parts ordering. By the afternoon pick-up time, their parts job is done and they can help out again on the counter.

Some shops have solved the problem by hiring a receptionist. Their main task revolves around the phone – taking inquiries and appointments, calling customers for authorization and scheduling, and doing follow-up calls to thank them for their business. This frees up the service advisor to concentrate on the work at hand.

Or you can just bite the bullet and hire a second advisor. That’s certainly an option, especially if you get someone who is trained in selling so they’re helping to raise average hours per invoice. That way they’re helping to pay their own way.

All of this can be a tough decision, of course… and it’s just one of the hundreds you have to make in a average week.

16

CANADIAN TECHNICIAN MARCH 2012

Regardless of which approach you chose, I agree you need to do some number crunching.

I have to admit, though, that’s not my strong suit. When I last faced that decision, I knew had to get some more current data for my own business. I bought an Excel for Dummies book and tried to figure out exactly where I stood. It didn’t take me long to realize I was in way over my head. I guess I’ve always been a DIY guy. (I should have learned my lesson when I did my own plumbing a few years back. Fortunately, the deductible on the water damage was only $500!) Eventually I gave up and decided to PSE. Pay someone else!

I hired an Excel wiz named Les who was able to create an amazing tool that allows me to see how much labour and parts revenue I should generate for each technician. It also told me how much I can pay the tech, how much more I can pay for management or an advisor, how

much more I have to pay for advertising, and lots more, right down to how much profit I should see per technician every month. It is amazing tool. And since then he has created several other management tools. I don’t know how I made major decisions in the past with out this kind of data at my finger tips.

If you’d like, I can send you the main spreadsheet. It is amazing! And it is just a jumping off point for understanding your business better. Just send me an email at kelly@kellythecoach.com.

I’m confident you’ll be able to figure out whether or not to hire a service advisor. I can’t wait until you tell me you’ve solved the problem of the carryovers!

Well, I’m heading home. I have a wine-making class tonight. As you know, I’m bit of a compulsive guy. I went into a store last week to buy some bottled water and saw they sold wine kits. I thought, hey, now there’s an idea!

I left with bottled water and everything I need to make wine. I guess you never really shake your inner DIYer! I did take my own advice by the way.

When I got home, I ran the numbers. I can save 67.5% making my own wine versus buying it by the bottle. How cool is that! Actually I am having labels made with our company name and will hand them out to customers when we celebrate our 25th anniversary this fall.

Wow, how the years have flown!

As always, I’m only an email away.

— Kelly Kelly Bennett is a certified management trainer and has been coaching automotive repair shop owners since 1990.

You can reach him at kelly@kellythecoach.com.

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It’s Coming!

04-01-2012

Watch for an announcement in next month’s issue.

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TaxTime

By Allan Janssen

Seven ways to make your annual encounter with Canada Revenue Agency a little less stressful and a lot less painful.

I

f you’re like many independent repair shop owners who started off as technicians before taking the reins of the business, you know more about ABS than GAAP. This time of year, however, it’s worth turning your attention to things like Generally Accepted Accounting Principles.

That’s right. It’s tax time.

But filing doesn’t have to be stressful. There’s plenty of professional help out there – some of it free – and the more organized you are, the easier it’s going to be.

Here are seven tax tips from Mike Shellnut of Shellnut Professional Accountants in Dartmouth, Nova Scotia.

Among his clients are a number of automotive repair shop owners, so he knows a thing or two about our industry and the unique challenges we face.

11.

Track taxable benefits carefully Taxable benefits is “quite a little monster,” Shellnutt says.

It’s an issue that employers have to pay close attention to.

Company cars, in particular, can be tricky, and they’re of special interest to Canada Revenue Agency (CRA).

Any personal use of employer-provided vehicles is considered a taxable benefit and should be reported with income. (And, by the way, personal use includes going to and from work.You can’t claim your commute.)

By the same token, it is not uncommon for an employee of a business – or even a business owner – to use his own vehicle for business purposes without seeking compensation. If employees use their own personal vehicles for work-related purposes, whether it is picking up or delivering parts, or shuttling clients, they’re allowed to deduct expenses related to that use. For the 2011 tax

year, the formula is $0.52 per kilometer for the first 5,000 kilometers and $0.46 for every kilometer after that. (In 2012, that went up to $0.53 and $0.47 respectively.) You must keep a detailed log, a sample of which is available at the CRA web site. Compensation back to the owner of the vehicle is not taxable (since they used after-tax dollars to operate the vehicle).

Another potential taxable benefit is a loan from the company at less than the prescribed interest rate. This should be claimed.

And if you decide to use credit card points to go on a holiday, that’s a taxable benefit too. Does anyone claim it?

Probably not very often. But it’s a risk people have to think about. And if it happens a lot, you could get caught.

22.

Tool tax for apprentices Although many in the industry would still like to see technicians be allowed to write off the cost of their tools, that provision has only been offered to apprentices, and only to a maximum of $500 per year. The tools must be purchased by the apprentice and be for exclusive use in his work. The employer will have to provide a T2200 – a declaration of the conditions of employment. Claiming $500 doesn’t mean they get $500 back. It means they’ll get the tax back on the $500 they spent on tooling up. And, of course, they’ll need their receipts.

33.

Capital purchases Equipment that has a useful life of more than a year is deemed to be capital equipment, so your Capital Cost Allowance (CCA) comes into play here. Remember, only

MARCH 2012 CANADIAN TECHNICIAN

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a portion of it can be claimed each year, as depreciation and amortization need to be considered.

“We see that often that someone will spend $20,000 or $30,000 on equipment and they’ll try to expense it, which would create a business loss,” says Shellnutt. “But you can’t do that because that equipment has a useful life long beyond one year. You can’t just take it off the bottom line.”

As useful life goes down, the claim portion changes, and you’ll have to keep track of what you’ve claimed.

44.

Training costs When it comes to the cost of educating your workforce, you have to look at the nature of the training to know how to claim it. If you have to train your staff on the use of a new piece of equipment, that becomes part of the capital cost of the equipment. That training is essentially added into the price of the equipment and is amortized over the life of the equipment. If it’s an employer paying for professional development or skills upgrading, it is considered an expense to the business and can be claimed as such.

55.

Income splitting If the owner has a spouse that is involved in the business, and is capable of doing bookkeeping, there’s an opportunity for a shop owner to hire their spouse. It gives that couple the benefit of income splitting. Rather than the owner earning $100,000 a year which would be taxed in a high tax bracket, both partners can earn $50,000 and pay at a lower tax rate. Any wage you give to your spouse must be of fair market value. You can’t pay someone $50,000 to empty trash bins once a month just because you want to split incomes.

66.

Put yourself on the payroll Getting paid through dividends in the company is great, but there are some advantages to putting yourself on the payroll as well, even if it’s just a small salary. “Having yourself on the payroll shows anybody external to your business that the company can sustain you as an employee,” says Shellnutt. “That adds value to the company, particularly when it comes time to sell.”

Plus, you might find that financial institutions are more receptive to you if you’re a salaried employee of the company. Dividend income fluctuates and is subjective, so they like to see a T4 coming through the

20

CANADIAN TECHNICIAN MARCH 2012

business, with dividends on top of that.

And when it comes to taking dividends, remember, you cannot do it if you have a retained deficit.You have to have retained earnings.

77.

Stay organized!

Probably the biggest incentive to stay organized is the time and cost savings you’ll enjoy when you send your documents to an accountant.

“If you are bringing your files in the proverbial shoe box, it’s going to cost you a lot of money to have an accountant or even a clerk go through those records,” says Shellnutt.

As far as bookkeeping is concerned, it makes sense to have someone on site, organizing the paperwork, day by day, month by month. There is also a strategic benefit to keeping your numbers up to date. If you wait a year to get your results back, there’s no way you’ll be able to respond to problems in the business.

If you’re not computerized and CRA ever gets you in their cross-hairs, you’re going to face an uphill battle proving all your claims. In today’s day and age, handwritten invoices are really unacceptable. In fact, they look suspicious.

Computer software is inexpensive, and easy to learn.

And from a standpoint of management control, it offers huge advantages.

Need some automotive shop software for things like invoicing, cost tracking, accounts receivable, accounts payable, and inventory management? You can download a program called “Service Writer Express” for free at www.kinsac.com. It’s basic… but it will get you started.

Needless to say, you should keep records for at least seven year. That’s the general rule of thumb. On personal income, CRA doesn’t go back beyond three years unless they detect fraud and then they can go back as far as they want. Just saying.

These are things for employers to keep in mind as they get ready for tax season. If number crunching does not come naturally to you, it is worth seeking the advice of a professional. Not only can they find all the deductions to which you’re entitled, but if something is not clear, they can get between you and CRA and can help answer questions on your behalf.

Best of all, during the course of the year, they’ll be able to read your numbers and suggest ways of improving your business processes.

You can’t beat the one-two combination of minimizing taxes and maximizing profits!

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TECHNICAL FEATURE

Testing One Two

All the conditions have to be right for GM’s evap systems to check for leaks. Knowing the procedure will help you diagnose evap issues.

By Jeff Taylor The use of the Ideal Gas Law is not new when it comes to diagnosing evaporative system failures.

It’s been in common use since 1999 when enhanced evap systems were mandated on all vehicles. The enhancement was the ability to check for leaks… and most manufacturers did that by employing the Ideal Gas Law. You remember the Ideal Gas Law, right? It states that there’s a proportional relationship between the temperature and the pressure of a gas in a sealed container. In other words, in a sealed evaporative system, as the temperature decreases, so should the pressure. And as the temperature rises, so will the pressure.

When the enhanced system was first introduced, the allowable leaks size was 0.040” but by 2002 the allowable size leak had been reduced to 0.020”. That’s a pretty small hole. A fuel tank that is three-quarters full will contain about 600 cubic inches of vapour area (in the lines, tank, charcoal canister, valves and other parts). In all of that area, you have to be able to find and seal a hole the size of a pin.

GM’s first attempt at the enhanced system worked fairly well at detecting large leaks… but it’s not so good at 22

CANADIAN TECHNICIAN MARCH 2012

finding the small leaks.Why? Because it’s dealing with a very volatile substance (gasoline) in an enclosed tank that is subject to sloshing, fuel pump action, heat from the exhaust, heat from the road and even heat from returning fuel if it’s not returnless the system. All of these actions have an effect on the pressure inside the fuel tank and the evaporative system.

Want to know what kind of an effect it has? Put a little fuel inside a small jerry can, tighten the lid, and shake it.

Now carefully open the lid you’ll hear

the pressure escape. That pressure was generated by the shaking.

It didn’t take long for manufacturers to realize that the effects of movement, heat, and other factors were constantly generating false leak codes. They had to come up with a system that would eliminate those factors and still provide an accurate leak test on the evaporative system.

Well, they knew that the best time to test for a leak is after the engine has been shut off and the vehicle is parked.

This is one of the main reasons that manufacturers started using the Ideal Gas Law to look for leaks in the evaporative system.

In 2003, when GM engineers starting using the Ideal Gas Law to detect leaks in the evaporative systems, they called it “Engine Off Natural

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Delphi-Canister-With-HC-Sensor

o Three Delphi-Hybrid-Evap-Emissions-CanisterModule that is used on a hybrid.

Vacuum” or EONV. It was introduced first on light duty trucks and began phasing it into passenger car platforms in the 2004 model year, with the goal of having all models using the EONV system by 2006.

If you’re wondering if the car you’re working on uses EONV, it can be a little difficult to tell. That’s because none of the original components had to be changed. EONV even uses the same purge-and-vent valves. But the engineers at GM changed a couple of things to make the system work: For one thing, they had to provide fused B+ power to the vent valve.This is different from the previous hot in run or start modes, to allow the vent to be controlled by the PCM when the key is off. You should watch for this during your diagnostics. If the vent solenoid has failed or the wiring been compromised, it has its own dedicated 10 amp fuse.)

Another change they made involved the diagnostic strategy and the software inside the PCM. GM had to change the enabling criteria to allow for a small leak test to take place. There are many things that are needed to allow the PCM to run the monitor, but some of the highlights that affect the way that we perform diagnostics are: • The monitors for codes P0446, P0455, P0496 must run and PASS. This means the PCM has checked the integrity of the purge and vent solenoids and checked for a large leak; • A number of other trouble codes that could affect the test (IAT, ECT, FTP and others); • Startup IAT is 4°- 30° C (39°- 86°F); • Startup ECT is less than 30°C (86°F); • The IAT and ECT are within 8° C (15°F) of each other; • There can’t be a refueling event; • There is a minimum engine run time of 10 minutes; • The vehicle must have traveled at least 5K (3 miles); • Fuel level must be between 15 and 85%; and • The ECT has to be more than 70°C (158°F) when the key is shut off; Only if all these requirements are met will the PCM allow the test to run when the key is turned off. The test can take up to 45 minutes to complete, so a good battery is important.

And the PCM will only allow two attempted tests per day and must see several tests completed with a FAIL status and up to 17 hours between tests

before it will mature the code and turn on the check engine light.

So from this we can see that this test will only run after a cold soak drive cycle. This is to allow the fuel tank pressure sensor to re-zero, and it means the vehicle will likely have to stay overnight at the shop to verify the repair.This is important to know unless you’re willing to let the customer take the vehicle and hope that the drive home meets all the proper criteria to enable the test to run. Remember that if you perform a repair that requires a code to be erased, it may take four days for this monitor to run and PASS. This is an especially important consideration in areas that use OBDll testing for emissions.

If all these requirements are meet and the key is shut off, the PCM will go

This is a 1x1x1 (1 cubic inch) piece of wood.

The pin is a 0.020 leak the paper clip is the 0.040 leak. Show this to a customer to explain what you are up against.

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ahead and start the test, which is done in three phases: Volatility Test, Phase I Pressure, and Phase II Vacuum.

The volatility test determines how volatile the fuel is. The PCM uses this knowledge in its algorithms to decide if the test can continue or has to be aborted. If the volatility is too high, the test will be aborted. If it’s moderate, the PCM will change its pressure points to compensate when it enters Phase I. And if the volatility is low, the PCM moves on to Phase I without changing anything. During the volatility test the canister vent is open, so if the pressure in the evap system rises during this part of the test, a FAIL will set.

In the Phase I test, the PCM checks system pressure. The PCM commands the vent valve to close and it monitors the fuel tank pressure sensor (FTP). If the FTP notes a pressure increase that passes a calibrated value (calculated using temperature and fuel level), the test passes and everything shuts off. If the FTP senses a vacuum, the test moves to Phase II. But if the threshold pressure isn’t met, the PCM records the pressure, opens the vent valve and monitors the pressure. If the FTP records a decrease in pressure, the PCM will pass Phase I

Never underestimate the power of a vacuum!

This is an example of how the Ideal Gas Law works. This tanker was steam cleaned and then sealed, by mistake. As the inside cooled, the pressure inside was reduced and the tanker collapsed.

and move on to Phase II but it will use the pressures recorded in its pass-fail calculations in Phase II. Phase II is the vacuum stage of the EONV test sequence.The PCM watches for the FTP to reach a threshold vacuum level. If it reaches the right level, the test 24

CANADIAN TECHNICIAN MARCH 2012

Delphi-Evaporative-EmissionsCanisters can come in many sizes and shapes.

passes, the vent valve opens, and the system shuts down. If the pressure threshold isn’t meet in Phase I, the PCM will open and close the vent valve a few times to stabilize the system. (Customers may hear this clicking if they are near the vehicle while the test is being performed.You can tell them its normal).

The PCM will close the vent again and check for a vacuum reading. After a set amount of time, the PCM records this value and will use it in combination with values that it recorded in Phase I and make a calculation. It knows what a perfect pass, and a perfect fail looks like, so it can decide on a fail threshold from these values. If the calculated value falls into this threshold area the PCM records a fail, but remember it needs to see several reported fails and up to 17 hours between each test before it will set a DTC. Some late model GM cars, minivans and trucks were very sensitive to power spikes. This really doesn’t relate much to an evap problem, until you have cleared the codes and are trying to get the monitor to run. What would happen is this: The PCM has seen all the enabling criteria and is ready to run the test, the key is shut off by the customer and all is well until they hit the remote power door locks. This can send a power spike into the vehicle that can shut down the PCM. The result is the monitor never runs. If you’re using OBDII for emission testing (or just trying to verify your

repair) this could be very frustrating.

The way to watch for this is, after you have enabled to PCM to perform a keyoff evap test, leave your scanner plugged in and turn off the vehicle. If the test has been properly enabled the PCM should stay awake for up to 45 minutes or until the test sequence finishes. The fix for the problem was to replace the PCM. The importance of a good battery can’t be stressed enough; if the battery voltage drops or is too low, this test will not run or may be aborted. Remember the PCM is going to be awake (up to 45 minutes) during this testing period so you will see data on the scanner if you have it hooked up when the system is performing a test.

Also be aware that if you’re doing a repair and the test is running (you may be unaware that it is) and you unplug a sensor, you could set a false code.

The use of EONV to test the evap system on GM vehicles has eliminated a large number of false codes but it’s not without its pitfalls. If you understand what’s happening during this test it can make your diagnostics easier and you can be more confident on a repair before giving the vehicle back to your customer.

Jeff Taylor is lead technician at Eccles Auto Service in Dundas, Ont.

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TOTAL QUARTZ engine oil More protection and more kilometers.

With TOTAL QUARTZ and its friction reduction technology, protect your engine and go further.

www.total-lubricants.ca

The right choice in lubricants

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?-¼:- 5)316/ ) ,1..-:-6+-

Shad’s Chairman John Vanstone and board member Ray Osika accepting the first Annual Fred Shaddick Community Service Award.

Your continued support of SHAD’s and the almost $4M in donations has had a profound impact on MDC. So much so that MDC has recognized our efforts by creating the Annual Fred Shaddick Community Service Award.

Awarded annually, the Fred Shaddick Community Service Award will recognize outstanding contribution in the community.

Won’t you consider joining us in pushing SHAD’s over the $4M mark this year ?

Since 1954, Muscular Dystrophy Canada has been committed to improving the quality of life, mainly through donations, for the tens of thousands of Canadians with neuromuscular disorders and leading research for the discovery of therapies and cures.

Shad’s R&R has continually supported these efforts since 1973 by donating over $3.8M to Muscular Dystrophy Canada. Now entering its’ 39th year, the automotive aftermarket continues to fulfill founder Fred Shaddick’s original mission of “For the Kids”.

Mark your calendars for the 39th Annual Shad’s R&R Golf Tournament on June 14th with all proceeds to Muscular Dystrophy Canada.

Station Creek Golf & Country Club – Stouffville, ON If you would like to become a sponsor or make a donation to SHAD’s R&R “For the Kids”, please contact one of our board members directly.

Shad’s Board of Directors: John Vanstone, Chairman Luc Champagne Ken Coulter Mike Fazackerley Steve Gushie Mike Holland Ray Osika Brad Shaddick Scott Stone Cameron Young

john.vanstone@modernsales.ca luc.champagne@autosphere.ca ken.coulter@specialtysales.ca mike.fazackerley@matthewscott.com steve.gushie@carquest.com holland-m@hotmail.com ro8997@gates.com brad.shaddick@federalmogul.com sstone@mevotech.com cameron.young@ca.bosch.com This ad space generously donated by Rousseau Automotive Communication.

CT-March2012_Layout 1 2/22/12 11:55 AM Page 27

PRODUCT CENTRAL Engine leak sealer

Synthetic oil filter Purolator has developed an oil filter made specifically for vehicle owners using synthetic motor oils in their cars.

The Purolator Synthetic features 100percent synthetic media designed to perform for extended periods of time. http://tinyurl.com/ct-prod-108

Rislone says winter is the best time to combat the havoc that cold weather can play on a vehicle’s cooling system. Its Rislone Head Gasket Fix is a chemical solution added directly to the radiator to permanently repair head gasket and other major cooling system leaks. http://tinyurl.com/ct-prod-112

Automotive inspection camera

Steering and suspension The Moog line of steering and suspension parts from Federal-Mogul has been expanded by 39 new parts, offering additional coverage for millions of late-model foreign nameplate and domestic vehicles. http://tinyurl.com/ct-prod-109

Classic creepers

SPX says the new OTC 3880X Automotive Inspection Camera features a 5.5-millimeter camera, added wireless 3.5-inch high-resolution color display, and ability to record images and video. http://tinyurl.com/ct-prod-113

Lift retrofit Snap-on’s standard (JCW60) and standard adjustable (JCW65) creepers are now available in both black and red.

They feature high-density 80-pound foam padding on an 11-inch by 39-inch surface reinforced with steel-frame construction. http://tinyurl.com/ct-prod-110

Diagnostic and information system

Rotary Lift has introduced a retrofit performance package that enables current SmartLift inground lift owners to step up to the company’s new Shockwave system which improves the rise and descent times of the SmartLift: just 25 seconds up and 19 seconds down. http://tinyurl.com/ct-prod-115

Data bus fault finder

The Snap-on Verdict diagnostic and information system includes a wireless display, scanner and meter that allow technicians to view all of their readings and control the scanner and scope remotely from the display. http://tinyurl.com/ct-prod-111

Snap-on’s new Data Bus Fault Finder (EEFF500) diagnoses scan tool communication failures. It can isolate defects and find the failure location, eliminating rogue or defective modules or data circuits that lock up the data bus via 12 switchable data channels. http://tinyurl.com/ct-prod-117

Fast Orange® Hand Cleaner The leading biodegradable, waterless, petroleum free hand cleaner is now infused with MicroGel™, a patentpending hand cleaning technology developed by Permatex® to make Fast Orange® even better! The best choice for hardworking hands.

MicroGel™ is a revolutionary new non-solvent formulation that still has the same powerful cleaning ability to get those tough working hands clean.

www.permatex.com MARCH 2012 CANADIAN TECHNICIAN

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PRODUCT CENTRAL Automotive filters

Lifting points

Federal-Mogul has introduced Champion branded automotive filters for the DIY market. The Champion line includes 53 oil and 183 air filter SKUs that provide 98 and 90 percent coverage, respectively, of the North American passenger vehicle population. http://tinyurl.com/ct-prod-122

The Automotive Lift Institute, Inc. has released the 2012 edition of its “Vehicle Lifting Points For Frame-Engaging Lifts” guide. The 60-page guide for domestic and imported cars and light trucks uses over 200 images to cover the most recent 20 model years. http://tinyurl.com/ct-prod-126

Quick struts Tenneco has expanded its line of Monroe Quick-Strut replacement strut assemblies to cover nearly two dozen additional popular light truck and sport-utility vehicle models.

They’re designed to reduce the time needed to perform a complete strut replacement. http://tinyurl.com/ct-prod-123

Oil filters Bosch has introduced a new line of spin-on oil filters and cartridge oil filters called Workshop Oil Filters.

Ninety-seven Bosch Workshop Oil Filters provide a combined 98%coverage for domestic, Asian and European vehicles in operation in North America http://tinyurl.com/ct-prod-127

Fluid-exchange machines

Round-head ratchet

Snap-on says its new 1/4-inch drive 72tooth round head ratchet (TKN72) is a versatile and durable ratchet that works well in tight spaces and hard-to-get-at fasteners. It features a compact head and short handle, which provides great access in tight quarters. http://tinyurl.com/ct-prod-124

Brake pads The Wagner ThermoQuiet line of replacement brake pads now includes ceramic rear disc pad sets for the 2012 Fiat 500 and Ford Focus.The company also has introduced ThermoQuiet semimetallic front pad sets for 2011 Ford F250 Super Duty models, and Wagner SevereDuty disc pads for 2012 Nissan NV1500 models. http://tinyurl.com/ct-prod-125 28

CANADIAN TECHNICIAN MARCH 2012

Bosch has introduced a new series of automatic transmission fluid, engine coolant, brake fluid, power steering fluid, and differential fluid exchangers. With rugged steel construction, they’re designed to withstand the shop environment, and improve fluid exchange efficiency. http://tinyurl.com/ct-prod-128 1

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Congratulations to Vern Meckelborg of Auto Ethics Enterprise Ltd., in Humboldt, Sask. for correctly answering our November AutoPuzzle.

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continued from page 30

I grinned.“It also explains why the insurance company wasn’t involved.That would have brought in the Game Warden.”

We soon had the 2002 Dodge Durango figured out. Beefus needed a new Central Timing Module, or CTM. It controls things like interior lighting, the headlights, intermittent wipers, and the door locks.

“We disconnected the battery temporarily to reset the module,” I explained to Beefus when he came in. “It’s working right now, but it will fail again – it’s a common complaint.

Want me to order up a new one?”

“How much is that gonna cost?” he asked suspiciously.When I told him, he nearly leapt out of his boots. “What? You gotta be kidding me! How ‘bout a used one from the wreckers?”

I shrugged. “It’s possible, as long as it came from a truck with the same options. But it won’t last long, and you’ll have to get it reflashed for the remote door locks to work.”

He snorted. “I can live without them suckers. Where is this module anyway? I’m gonna change it myself.”

I sighed. “It’s behind the left-hand driver’s kick panel.” We’d left the panel off because we knew Beefus would want to see it for himself.

After paying his bill, Beefus climbed into the cab and began to drive away. I figured we’d be seeing him again; I just didn’t realize how soon. He only got 10 metres before his headlights started flickering and some relays began clicking under the dash. Wild expletives filled the air as Beefus jammed the truck in reverse.

He glared at me through his open window.“Is this some kind of joke, Shambles? Because if it is, I ain’t laughin’” In anger, he aimed a kick at the CTM with his left cowboy boot. Suddenly everything returned to normal. Beefus was flabbergasted.

“Y’mean all I gotta do is give this here box a little love tap once in awhile? Heck, that’s easy!” And with that he was gone in a cloud of dust and gravel.

Back inside, Basil was working on a crossword puzzle. “I need a six-letter word for ‘without intelligence.’”

“He just drove away,” I said. “With any luck, he’ll never come back.”

A few days later, Tooner was reading the morning paper.

“Listen to this, Slim. ‘Single vehicle accident blamed on driver inattention.’ It says here local resident B. Rube drove his pickup into an apple orchard off Simpson Road. His truck was totaled.”

“What was the cause? Bad road conditions?”

Tooner chuckled. “Nope. Witnesses say the driver was driving erratically, and that his headlights were flickering on and off. One lady walking her dog swore he was hollering and kicking at something under the dash as he went by.”

Basil stirred his tea. “Maybe we should have condemned his vehicle as being unsafe to drive.”

I shrugged. “If you ask me, any vehicle Beefus owns is unsafe to drive – simply because he’s in it.”

Rick Cogbill is a freelance writer and former shop owner. He lives in Summerland, B.C.

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Ross-Tech

Ross-Tech...................................28 www.ross-tech.com Shell ..........................................17 www.shell.ca Snap-On Tools of Canada ..............2 www.snapon.com 1-800-734-2676 Tenneco Automotive..........4, 11, 14 www.monroe.com Total Lubricants..........................25 www.total-lubricants.ca 800-463-3955 Valvoline ................................7, 13 www.valvoline.com 1-800-TEAM-VAL

WORLDPAC

WorldPac .............................21, 32 www.worldpac.ca 800-463-8749 MARCH 2012 CANADIAN TECHNICIAN

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The Car Side

By Rick Cogbill

Durango Redneck

One of Slim’s customers gives a whole new meaning to the phrase “kick-starting” when he gets an intermittent CTM problem.

Some customers are a real joy.They value their automobiles and are passionate about regular maintenance. Some, it’s rumoured, even have a budget for car repairs. Shocking, I know.

But this wasn’t one of those customers.This was Beefus Rube.

“So you gonna tell me what’s wrong with my truck or not?” Beefus eyeballed me shrewdly, a toothpick jammed tightly between his teeth.

“How can I?” I replied.“All you’ve said is ‘My truck’s broke.’”

Beefus rolled his eyes. “Sheesh. And you call yourself a grease monkey?” He removed the toothpick and rubbed his nose with the back of his hand. “Okay, here’s the scoop. I go to get in my truck this morning an’ the remote door locks don’t work.” He stabbed the counter with a stubby finger. “Not only that, the ‘service 4WD’ light is on.”

If Beefus was expecting sympathy, it wasn’t going to happen anytime soon.

“Why are you driving a Dodge anyway? I thought you were a Chevy man.”

Beefus looked away and shrugged. “Yeah, well, I had a little 30

huntin’ accident with my Chevy last fall. The insurance company stiffed me, so my brother-in-law sold me this truck real cheap.” He snorted. “Now I know why.”

“You’ll have to leave it with me, Beefus. I’ll call you when I know what’s going on.”

Over morning coffee I broke the news that Beefus had a new truck.

“Hunting accident?” Tooner laughed. “Yeah, you could call it that. Beefus was out deer hunting, only he don’t like the cold. So him and his buddy cruised the logging roads looking for game, with their guns loaded inside the cab.”

Beanie’s eyes grew wide. “But that’s against the law!”

Tooner nodded. “You got ‘er.”

“So what happened?”

“A nice buck jumped right out in front of them. Beefus got so excited that he accidently pulled the trigger and put a bullet right through the floorboards into the automatic transmission.”

Basil chuckled. “No doubt that caused some consternation inside the cab.” continued on page 29

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