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Our Industry Advocacy
By Jeb Balise, MSADA President
Next month a contingent of MSADA representatives will head to our nation’s capital to wave the dealer flag for our industry and provide our Members of Congress with our insights on some of the pressing matters of the day.
Our industry is regulated at all levels – by municipalities, state agencies, and the federal government. Anyone paying attention can see that government never stops growing. State and federal budgets continue to increase, as more regulators are hired to implement an expanding maze of rules making business more difficult. Without our constant input, misconceptions and assumptions can get in the way of sound policy
Our industry is regulated at all levels – by municipalities, state agencies, and the federal government.
Each year, the businesses that make up the fabric of our communities are being tugged at the seams. Nature abhors a vacuum. If we do not stand up for ourselves, the inevitable bad policy will emerge and negatively impact all of us. That means we must make the effort and communicate with our elected officials to provide our side of the story.
As part of our on-going efforts, dealers from around the country with their dealer association executives and staff – almost 500 strong – will attend NADA’s Washington Conference to collectively remind the Members of Congress of the extent of our economic footprint. While there, we will be addressing such matters as the EPA’s emissions standards, misguided right to repair proposals, and federal efforts to combat the nationwide scourge of catalytic converter thefts.
It is vital to have our young dealers and key managers participate in this process. This year, we will have at least five Next Gen dealership folks attending the Conference.
Every little bit helps in our perpetual advocacy to promote our industry. We may not agree with our legislators on every issue, but, when the chips are down, the time put into establishing these relationships can pay off. It is important to remember that relationships matter, whether we are talking about the local zoning board, our state reps or senators, or Congress.
I encourage you to get involved, even if it is just to pick up the phone and make a call or send an email to your legislators. While you may worry that time spent with legislators who may seem less than sympathetic is wasted, nothing could be further from the truth. When we do not make our presence felt, we lose by default.
Feel free to reach out to me or our Executive Vice President Robert O’Koniewski for talking points or other tips for representing your business. We are here to help.
MSAdA BoArd
Barnstable County
Brad tracy, tracy Volkswagen
Berkshire County
Brian Bedard, Bedard Brothers Auto Sales
Bristol County
richard Mastria, Mastria Auto group
Essex County
William Deluca iii, Bill Deluca family of Dealerships
Paul Bertoli, Priority chryslerJeep Dodge ram
Franklin County [open]
Hampden County
Jeb Balise, Balise Auto group
Hampshire County
Bryan Burke, Burke chevrolet
Middlesex County frank Hanenberger, MetroWest Subaru
Norfolk County
Jack Madden, Jr., Jack Madden ford charles tufankjian, toyota Scion of Braintree
Plymouth County
christine Alicandro, Marty’s Buick gMc isuzu
Suffolk County [open]
Worcester County
Steven Sewell, Westboro chrysler Dodge ram Jeep
Steve Salvadore, Salvadore Auto
Medium/Heavy-Duty Truck Dealer
Director-at-Large [open]
Immediate Past President
chris connolly, Jr., Herb connolly chevrolet
NADA Director
Scott Dube, Mcgovern Hyundai rt.93
OFFICERs
President, Jeb Balise
Vice President, Steve Sewell
Treasurer, Jack Madden, Jr. Clerk, c harles tufankjian
MSADA A SS oci Ate M e M ber S D irectory
ACV Auctions
Steve Sirko (856) 381-3914
ADESA
Elizabeth Morich (508) 270-5400
Albin, Randall & Bennett
Barton D. Haag (207) 772-1981
Allied Recycling Center
Joseph Castaneda (781) 316-7180
Ally
Maryanne Recupero (617) 997-9574
American Fidelity Assurance Co.
Kathleen Weisenbach (402) 523-5945
America’s Auto Auction Boston
Chris Colocousis (774) 218-8930
ArentFox LLP
Paul Marshall Harris (617) 973-6179
Sarah Decatur Judge (617) 973-6184
Armatus Dealer Uplift
Joe Jankowski (410) 391-5701
Auto Auction of New England
Steven DeLuca (603) 437-5700
Bank of America Merrill Lynch
Stephen Delaney (781) 981-9370
Nancy Price (781) 534-8543
BCI Financial Corp.
Timothy Rourke (860) 302-7127
Bellavia Blatt
Leonard Bellavia (516) 873-3000
Broadway Equipment Company
Fred Bauer (860) 798-5869
Cambridge Trust
David Sawyer (617) 620-3484
CBIZ
Nichole Rene (203) 781-9690
CDK Global
Rob Steele (508) 564-1346
Citrin Cooperman
Ron Masiello (508) 757-3311
Clifton Larson Allen
Nick Chappell (508) 930-2199
Cooperative Systems
Scott Spatz (860) 250-4965
Cox Automotive
Polly Penna (303) 981-1298
CVR
John Alviggi (267) 419-3261
Dave Cantin Group
Woody Woodward (401) 465-7000
Dealer Pay
Shannon Wischmeyer (636) 293-8038
Downey & Company
Paul McGovern (781) 849-3100
DP Sales Distributors
Andrew Prussack {631) 842-7549
Driving Dealer Performance
Kimberly Guerin (978) 760-0322
EasyCare New England
Greg Gomer (617) 967-0303
eDealer Services, LLC
Tom McKinnon (617) 631-3293
Ethos Group, Inc.
Drew Spring (617) 694-9761
EVready Energy
Chris Nihan (978) 406-1578
Federated Insurance
Kevin Sundberg (559) 547-9694
Fisher Phillips LLP
Jeff Fritz (617) 532-9325
Josh Nadreau (617) 532-9323
Freedom Solar Power
Ryan Ferrero (970) 214-4433
GW Marketing Services
Gordon Wisbach (857) 404-0226
Harris Beach Murtha Cullina
Thomas Vangel (617) 457-4072
Hilb Group
James Pietro (508) 791-5566
Huntington National Bank
Mark Flibotte (781) 724-3749
JM&A Group
Chris “KC” Hwang (954) 415-6961
Key Bank
Tom Flynn (716) 998-6247
M & T Bank
John Federici (401) 642-5622
Maverick Document Signings
Lisa Spring (310) 739-6967
McWalter Volunteer Benefits Group
Shawn Allen (617) 483-0359
Merchant Advocate, LLC
Dan Giordano (973) 897-2778
Mintz Levin
Kurt Steinkrauss (617) 542-6000
Nancy Phillips Associates, Inc.
Nancy Phillips (603) 658-0004
National Business Brokers
Peter DiPersia (603) 881-3895
National Grid
Nicole Caruso-Carlin (347) 426-6331
NEAD Insurance Trust
Charles Muise (781) 706-6944
Northeast Dealer Services
Johna Cutlip (401) 243-7331
OCD Tech
Michael Hammond (844) 623-8324
Performance Brokerage Services
Jacob Stoehr (847) 323-0014
Performance Management Group, Inc.
Dale Ducasse (508) 393-1400
Piper Consulting
Jim Piper (207) 754-0789
Plug In America
Joel Levin (237) 925-1364
Pullman & Comley LLC
James F. Martin, Esq. (413) 314-6160
Reynolds & Reynolds
Austin Ziske (802) 505-0016
Rockland Trust Co.
Joseph Herzog (508)-830-3241
Santander Bank
Richard Anderson (401) 432-0749
Chris Peck (508) 314-1283
Schlossberg, LLC
Michael O’Neil, Esq. (781) 848-5028
Southern Auto Auction
Joe Derohanian (860) 292-7500
Sprague Energy
Steve Borelli (508) 768-5252
The Towne Law Firm P.C.
James T. Towne, Jr. (518) 452-1800
TrueCar
Lauren Bailey (703) 909-1625
Truist
Andrew Carmer (401) 409-9467
Twelve Points Wealth Management
Taylor Duffy (978) 318-9500
Wells Fargo Dealer Services
Rich DeFreitas (857) 205-2780
Withum
Kevin Carnes (617) 471-1120
Zurich American Insurance Company
Steven Megee (774) 210-0092
Mass. AG’s Junk Fees Rules Commence Sept. 2
Dealers Exempt from Most of the Rules, But Violations Could Result in Severe Financial Treble Damages
By Robert O’Koniewski, Esq.
MSADA Executive Vice President
rokoniewski@msada.org
Follow us on X (formerly Twitter) • @MassAutoDealers
Dealers will need to pay attention to a new regulatory obligation beginning September 2 as well as recommit their compliance efforts to several current requirements under longstanding rules. (Comments regarding this and other following topics are provided for informational purposes and do not constitute legal advice. Dealers must always consult competent counsel to review their own business practices and compliance efforts.)
A simple warning – can you afford to be non-compliant with any of the rules?
As we have reported numerous times this year, Massachusetts Attorney General Andrea Campbell, on March 3, issued a new set of regulations, under the state’s Consumer Protection Act, to target certain businesses’ junk fees that ultimately boost the total price of a product beyond the advertised price. Such businesses the Attorney General seeks to regulate include ticket sellers, hotels, car rentals, food and grocery deliveries, gyms, and landlords, just to name a few.
The purpose of the regulations, 940 CMR 38.00, is to establish standards, by defining certain unfair and deceptive acts and practices governing the imposition of fees in connection with the marketing, solicitation, and sale of products as well as trial offers, subscriptions, and contracts with “negative option features”.
The regulations are scheduled to take effect on September 2, 2025. While motor vehicle dealers are mostly exempt, the rule still poses real compliance risks in certain matters. Dealers’ compliance with the AG’s current regulations on
vehicle advertising (found at 940 CMR 5.00), including the proper presentation of the doc prep fee amounts to consumers, is a key component of dealers’ compliance with the new junk fees regulations and maintaining exempt status that is not related to activities concerning subscriptions, trial offers, and recurring fees. (Advertising rules and doc prep fees are covered later in this column.)
Reminder – The AG also has promulgated regulations over the years under the Consumer Protection Act that generally cover all advertising practices by retailers.
AG Campbell first proposed the draft junk fees regulations in December 2023 in a form that comprehensively captured more businesses and their various practices, including the disclosure of dealership pricing, advertising, marketing, and sales practices related to vehicles, services, and aftermarket products. Your MSADA lobbied extensively against the broad reach of the draft regulations, especially their duplication of current state and federal rules and statutes as well as their unworkability.
The new regulations issued on March 3 exempt auto dealerships and vehicle manufacturers as far as their activities are covered under the AG’s motor vehicle regulations at 940 CMR 5.00, including motor vehicle advertising and sales requirements. Any activity involving subscriptions, trial offers, and recurring fees will be governed under today’s rule at 940 CMR 38.05.
When presenting a trial offer, the AG’s regulations require businesses to clearly disclose: any
charges a consumer may incur as a result of accepting a trial offer; any products for which charges may be incurred as a result of accepting a trial offer; instructions for consumers to reject or cancel a trial offer before being charged; the calendar date by which a consumer must reject or cancel a trial offer to avoid being charged; and the calendar date on which a consumer will be charged if the consumer fails to reject or cancel a trial offer.
Further, prior to the purchase of a product involving a recurring charge or subscription, the AG’s regulations require businesses to clearly disclose: what consumers will be charged for and if any charges will increase after a certain period, including trial periods; if charges will occur on a regular basis unless cancelled by a consumer; and instructions on how to cancel a recurring charge or subscription.
The AG’s regulations also require businesses to implement simple processes for consumers to cancel subscriptions and other recurring charges, including ensuring that consumers are able to cancel subscriptions just as easily as they are able to enroll in them.
Given the varied extent to which dealers’ practices occur across the spectrum, dealerships should consult with competent counsel to review their own business practices to assess whether your own activities may be regulated under the new rules. Remember, the Chapter 93A Consumer Protection Act allows for private rights of action, and violations could result in a minimum of double damages and a maximum of treble damages, plus attorney’s fees.
Check out this month’s cover story for more information on the new rules.
Also, check out MSADA Bulletin #119, issued on 8/22/25, to access additional support materials, including:
• a link to the junk fee regulations themselves (a hard copy of the regs is included in the cover story);
• a link to the ComplyAuto compliance webinar we did for dealerships on August 6 to explain the regulations and dealership duties, plus a link for the webinar slide deck;
• a link to a guidance document from the Massachusetts Attorney General’s Office regarding the junk fees regulations;
• a link for a YouTube video webinar posted by the Massachusetts AGO regarding the regulations; and
• a link for a refresher on the existing motor vehicle regulations, at 940 CMR 5.00, under which dealerships presently operate, and as discussed next.
Print Vehicle Advertising Rules
On a regular basis we provide reminders to our member dealers of the various obligations they have under existing law, including compliance with the Massachusetts Attorney General’s regulations governing print advertisement practices. (This is layered on top of the well-publicized enforcement actions by the Federal Trade Commission against dealers’ ad practices, which we have documented in several bulletins over the last decade and magazine articles, including, for example, our 2025 Bulletin #1 issued on January 2.)
Under the Massachusetts Consumer Protection Act (MGL Chapter 93A), the Attorney General several decades ago promulgated regulations to protect consumers from an “unfair or deceptive act or practice” by merchants. The AG’s regulations governing the advertising of motor vehicles can be found at 940 CMR 5.02 in the state’s regulatory code.
The various Attorney General regulations address advertising retail sales generally and motor vehicle sales in particular. The definition of an advertisement is very broad and means any oral, written, or graphic statement made by a seller in any manner in connection with the solicitation of business or which encourages a person to make a purchase. It includes statements and representations made in a newspaper or other publication, on radio or television or contained in any notice, handbill, sign, circular, pamphlet, letter, or otherwise.
Some of the specific regulatory requirements (violations of which may subject the dealer to actions under Chapter 93A) are:
• Advertisements must disclose the business name and address of the dealer;
• Advertisements for used motor vehicles must disclose that the vehicle is used, the stock number, and must disclose if the vehicle was formerly a demonstrator, taxicab, police car, lease car or rental vehicle;
• If advertising price, the advertisement must include all charges necessary or usual prior to delivery (e.g. freight, handling, vehicle prep and documentary prep fees);
• Dealer may not use terms such as “dealer’s cost”, “wholesale”, “invoice price”, “factory billing” or other similar terms unless the cost or price standard represents the total consideration paid by the dealer to the manufacturer, where no hold back or rebate has been or will be paid and the advertisement discloses the exact figure of the standard;
• Dealer must sell a motor vehicle in accordance with any terms (e.g. price or warranty) advertised or represented;
• Advertised price must include all equipment on a particular motor vehicle unless clearly and conspicuously excluded;
• Sales or promotions must be advertised with expiration date and limitation of supply (if any);
• Advertisement must not contain any representation or statement of fact which is false or misleading or which dealer does not know to be true;
• If dealer represents price to be paid for trade-in, price of vehicle to be sold must be within range at which such vehicle is usually sold and may not be increased because of trade-in amount;
• Dealer may not advertise specific price to be paid for trade-in unless price will be paid for all trade-in vehicles, regardless of age or condition unless clearly and conspicuously disclosed what conditions vehicle must meet before price will be paid;
• Dealer may not advertise a range of prices for trade-in vehicles such as “up to $500” or “as much as $500” unless the dealer clearly and conspicuously (if printed document, must be in at least 10 point type) discloses the criteria (such as age, condition or mileage) which the
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dealer will use to determine the amount to be paid for a particular trade-in vehicle;
• Dealer may not use terms such as “standard factory equipment” or “fully equipped” or similar terms but may list any or all of the specific equipment or accessories with which the advertised vehicle is equipped.
Further, dealers may recall that, beginning in 2007, the Attorney General initiated enforcement actions against several dealers who the Attorney General alleged violated the advertisement regulations. (At the time, we wrote about this issue in Bulletin #1 of 2008, and Bulletins #3 and #6 of 2007, each of which is available on our website.) The Attorney General had reached agreement with the franchised dealers who consented to change their advertising practices and pay civil penalties to resolve allegations that the dealers used false and misleading prices in their print advertisements. The Attorney General acted pursuant to her authority under Chapter 93A and its companion regulations, 940 CMR 5.00 et al.
Under the terms of the agreement, the dealers were specifically prohibited from using three types of advertising practices:
• “Asterisk pricing” where a dealer advertises a price for a vehicle with an asterisk and in small print at the bottom of the advertisement indicates the material terms and conditions that must be met to receive the advertised price and that the advertised price presumes cash or trade of $X amount, thereby providing an advertised price that is deceptively low and not actually available;
• Displaying the advertised price for a vehicle in a manner that was artificially lowered to reflect a cash or trade value required to be paid by the purchaser; and
• Advertising rebates in such a manner where the terms are not clearly disclosed but give the impression that they are universally available, and hiding the terms and conditions in small print when the terms affect the actual price of the vehicle.
The AG’s actions only involved print ads. The enforcement actions did not address radio or television ads. Nor was lease advertising considered. However, the issues raised by the AG could arguably be applied to both purchase and lease advertising, and in any form of media.
Dealers continually should review all their advertisements and check for compliance with the applicable regulations. If necessary, dealers should consult with learned counsel. If one needs assistance in seeking guidance from counsel, give us a call for suggestions.
The link to these regulations at 940 CMR 5.01 is included in MSADA Bulletin #119 (8/22/25) and Bulletin #2 (1/5/25) as well as on the MSADA website (www. msada.org).
Then, if one travels in the wayback machine, recall that in September 2021, during the Covid-caused market chaos, in response to consumer complaints and media reports of alleged unscrupulous pricing practices by Massachusetts franchised and used motor vehicle dealers, Massachusetts Attorney General Maura Healey issued an Advisory on Automobile Advertising, Pricing and Lease Buyouts, which was a restatement of key laws and regulations regarding dealer pricing and marketing practices.
At that time, The Covid pandemic and related shutdowns had significantly impacted both the new and used car markets. The fear of Covid transmission led to a decrease in the use of public transportation and an increase in the demand for used cars. Also, a global shortage of the semiconductor chips used in automobiles and outbreaks in factories were slowing, and in some cases halting, vehicle production. As a result, manufacturers had significantly cut production of new vehicles.
Due to those conditions, the prices on new and used cars increased significantly. Dealerships were refusing to sell vehicles at their advertised prices, demanding additional fees and costs for “market adjustments” and refusing to honor the buyout terms of lease agreements with consumers so that leased vehicles can be turned
over and sold at a higher price. Regulators feared that this type of conduct could target members of historically marginalized populations and vulnerable consumers. In light of these concerns, the Attorney General’s advisory reminded automobile dealerships of their legal obligations and consumers of their rights in automobile sales transactions, including:
• Automobile dealers must clearly and conspicuously disclose all included and excluded charges in any advertised price of a vehicle as well as the expiration date of any advertised price, and it is unfair or deceptive to refuse to sell a vehicle for the price advertised. 940 CMR 5.02(3)(4), (6), & (8); 940 CMR 3.02(3).
• It is unfair or deceptive for automobile dealers to make misrepresentations, including misrepresentations about the value of a vehicle by, among other things, posting or advertising inaccurate prices or prices they will not honor. 940 CMR 3.02(2); 940 Code Mass. Regs. 3.04; 940 CMR 3.05; 940 CMR 5.02(9).
• Automobile dealerships have a contractual obligation to honor the terms of any contract with a consumer regarding the lease of a vehicle, including a consumer’s right to purchase the vehicle under the contract, and failure to do so may constitute an unfair or deceptive act or practice. G. L. c. 93A, § 2, Anthony’s Pier Four, Inc. v. HBC Associates, 411 Mass. 451, 474 (1991) (“We have said that conduct ‘in disregard of known contractual arrangements’ and intended to secure benefits for the breaching party constitutes an unfair act or practice for c. 93A purposes.”), citing Wang Laboratories, Inc. v. Business Incentives, Inc., 398 Mass. 854, 857 (1986).
• Automobile dealerships must comply with existing statutes, rules, regulations, and laws, meant for the protection of the public’s health, safety or welfare that is intended to provide protection to consumers. 940 CMR 3.16(3).
• Automobile dealerships are public accommodations and may not discriminate against consumers based on their race, color, religious creed, national origin,
sex, gender identity, sexual orientation, physical or mental disability, or ancestry.
MGL c. 272, §§ 92A & 98.
Circumstances may change but the rules never do.
Finally, dealers should consider re-familiarizing themselves with the pertinent federal rules. NADA has issued a number of publications regarding the Federal Trade Commission’s advertising rules, especially in the area of lease and credit advertising. NADA members can go to the NADA Website (www.nada.org) to access such publications. NADA’s Management Education section can be reached at (800) 252-6232 if you have any questions about the publications. Further, dealers can reference on the MSADA website our bulletins discussing various FTC enforcement actions going as far back as 2013.
MSADA and NADA membership is worth the price considering the comprehensive access to state and federal compliance information one can have. Membership dues are a relatively inexpensive insurance policy. After all, the easiest way to stay out of the Massachusetts AG and FTC’s crosshairs is to follow the rules.
Doc Prep Fees – A Reminder
As stated previously, doc prep fee compliance goes hand-in-hand with print advertising compliance which itself is a foundation of the exemption dealers have from most of the new junk fees rules.
With our Attorney General and Governor, who was the previous Attorney General, both now in their third year in office and most likely preparing for re-election in 2026, it is important to avoid activities that could shine a spotlight on onerous doc fee practices at dealerships. Additionally, the Federal Trade Commission sets its rifle scope on dealers pricing and fee practices across the nation deemed questionable and potentially deceptive.
Several times we have beaten back previous legislative efforts to regulate the doc fee. Once again, we are facing a legislative proposal that would cap a dealer’s documentary preparation fee at $400; a dealer also would be prohibited from charging
a doc fee on a vehicle priced at $2,500 or below. The bill received a favorable recommendation from the Joint Committee on Transportation and is now before the House Ways and Means Committee. Each year, a growing number of complaints from car buyers to legislators fuels interest in this proposed law.
As we have written over the years, the Federal Trade Commission and our Attorney General are aggressively pursuing regulatory actions against retailers’ sales practices, “junk” fees, and other so-called user fees deemed questionable and potentially deceptive. Such scrutiny from activist regulators is not going away. Please do not let fee abuses cause additional scrutiny from legislators and regulators. [Also, reference MSADA Bulletin #1 (1/2/25).]
Finally, as we highlighted earlier, the doc prep fee must be included in any advertised prices you have put out to the public whether in print ads or on your own website. See Massachusetts the regulations at 940 CMR 5.02(3):
(3) It is an unfair or deceptive act or practice for a motor vehicle dealer to advertise the price of motor vehicles unless such price includes all charges of any type which are necessary or usual prior to delivery of such vehicles to a retail purchaser, including without limitation any charges for freight, handling, vehicle preparation and documentary preparation, but excluding taxes and optional charges for the dealer’s preparation of title and assistance in registering a vehicle.
The “Documentary Preparation Fee” can be passed on to the consumer but only if it is (1) part of the total purchase price advertised to the customer, and (2) a fee associated with legitimate costs that you incur. There is no maximum amount set in law that a dealer can charge for “doc fees.” However, you must make sure that any doc fee charged to a customer has a reasonable relationship to the actual costs you incur in preparing the necessary documents for the customers, except for titling and preparation of finance-related documents, as explained below.
Cost recovery consists of passing on to
the customer the expenses incurred in doing the following: for example, preparing a P&S, an appraisal document, odometer statements, insurance verifications, etc.; storing or archiving documents; privacy act and security expenses; facility overhead expenses; and personnel and computer costs associated with these tasks.
Dealers need to practice restraint and discretion when setting the fee. The fee is allowed for cost recovery; it is not intended to be a “profit-making” component of the vehicle purchase. Your Association has provided previously a calculation matrix based on recoverable costs divided by vehicles sales and leases. It is a good starting place for dealers.
Two items that may never be included in the “doc prep” fee: (1) preparation of the Retail Installment Sales Contract cannot be part of the fee’s calculation as you would then need to wrap it into the APR calculation; and (2) if you are on the EVR system, you cannot include the EVR fee in the “doc prep” fee.
“Doc fees” charged to customers should be uniform in amount. If you are aggregating your costs and apportioning these costs to each of your customers on a pro rata basis, excluding a customer will throw the formula off and strengthen a customer’s argument that the fee is arbitrary. Be sure you can justify the fee’s total amount that you are charging a customer on the P&S.
Dealers must also NEVER represent to customers that any portion of the “doc prep” fee is required by or remitted to the RMV or any other state agency. Dealers should not aggregate any state fees into the doc prep fee.
Furthermore, dealers must note that the “doc prep” fee cannot have anything to do with the Title Preparation Fee. The Title Preparation Fee (which is on a separate line on the P&S) has been capped by the Legislature at $5. You cannot charge a titling fee higher than $5, nor can you roll your costs above the $5 into the doc prep fee. Any cost you incur in preparing or procuring title above the $5 amount CANNOT be passed on to the consumer other than through the gross profit earned on the vehicle.
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Finally, as of January 2014, as a result of a ruling from the Massachusetts Department of Revenue, the doc prep fee is part of the taxable amount of the vehicle sale transaction. Make sure the doc prep fee is clearly stated on the motor vehicle purchase contract and it is included in the amount on your motor vehicle purchase contract that will be subject to the state’s 6.25% sales tax.
In short, if you are charging a “doc fee,” it can be passed on to the consumer but only if (1) it is part of the total purchase price advertised to the customer and (2) it is a fee associated with legitimate costs that you incur. Be sure you can justify the amount and charge every customer the same amount. Do NOT charge anyone a title preparation fee higher than $5. Do NOT include any other state fees in the doc prep fee amount. Finally, be sure the fee is part of the transaction’s sales taxable amount.
Customer Brochure: In addition to the scrutiny the doc prep fee receives from legislators, regulators, and the media, your own sales people and customers can generate confusion and questions about the fee. For example, over the course of the year how often have your salespeople heard the following: “Why are you charging me a documentary preparation fee, and why is it $(fill in the blank)?” More importantly, what does your sales team tell your customers? That can be the really scary part of the story. In order to assist you in explaining the need for the “doc prep” fee to your customers, your Association has developed a brochure you can provide to them. A sample brochure can be obtained at the MSADA website (www.msada.org) which you can use as a template and print for yourself.
Dealer Plates Usage Compliance
One of the more “obvious” violations of the existing dealer plate law (to law enforcement) that dealers create for themselves is driving a dealer-plated vehicle without the required window stickers. Law enforcement can readily ascertain this by viewing the dealer plate yet no window stickers.
Recently, your MSADA has received calls from dealers who had an individual driving a dealer plated vehicle stopped by the state police and cited for a violationnamely, no window stickers. The penalty is loss of the plate for at least 30 days.
This is our periodic reminder to dealers to commit to proper dealer plate usage compliance and avoid the headache of a police citation and a Section 5 hearing (and potential loss of plate privileges).
The law and rules essentially have not changed in over 25 years, so please be diligent with your dealer plate compliance.
Here is a discussion of the key points regarding dealer plate usage. For the full RMV Advisory on Dealer Plates posted to the RMV’s website, go to www.mass.gov/ doc/advisory-on-dealer-plates.
Who Can Drive a Dealer Plated Vehicle? The “Dealer” plate designation is just one of several types of General Registration Plates regulated by the Registrar of Motor Vehicles. Beginning January 1, 1999, the Legislature expanded the law (MGL Chapter 60A, §1) to allow for unrestricted personal use by the dealer and other individuals who occupy certain positions in relation to the dealer. The following individuals, and only those individuals, may have unrestricted use of a dealer-owned motor vehicle being operated with the general registration plate assigned to the dealer:
• The motor vehicle dealer;
• the spouse of the motor vehicle dealer;
• a co-owner of the dealership entity (a person who holds at least a 40% proprietary interest in the dealership);
• the spouse of a qualifying co-owner; and
• any employee of the motor vehicle dealer who works at least 20 hours per week as a salesperson for the dealership.
“Unrestricted use” means that only those individuals occupying one of the positions described above (and no others) and using the vehicle with the permission of the dealer, may use the vehicle at any time and for any purpose, including for personal use. Except for demonstration or sales related purposes, no other person, in-
cluding other relatives of the dealer, other dealership employees, friends, or customers, may operate a dealer-owned motor vehicle with a dealer plate attached.
The RMV’s existing regulations prohibit a dealer from operating a motor vehicle with a dealer plate attached “as equipment utilized in the operation of the business of the dealer, such as a courtesy bus or parts or service vehicle” (except to plow snow from the dealer’s business property). If a dealer-owned vehicle is used as a courtesy bus or as a parts or service vehicle, it must be registered with “commercial plates,” even if operated by one of the above-mentioned parties.
“Equipment utilized in the operation of the business” includes a “loaner” vehicle to a service customer. A dealer assigned Dealer Plate cannot be used on a “loaner” vehicle provided to a customer whose own vehicle is in for service; such vehicles must be separately registered, titled, and insured.
Do NOT Forget the Window Stickers. The dealer-owned vehicle that is to be driven with a dealer plate is technically part of the dealer’s inventory and, thus, available for sale or lease. Current state and federal laws dictate that certain stickers be affixed to vehicles offered for sale. Therefore, under the Massachusetts dealer plate law, these required vehicle consumer information stickers must be displayed on any vehicle being operated with a dealer plate. Such stickers, based on being a new or used vehicle, are variously required as described below on passenger vehicles, sport utility vehicles, and pickup trucks.
New Motor Vehicle Stickers:
• “Manufacturer’s Suggested Retail Price” label (the “Monroney Label”), required by federal law to be placed on the windshield or side window of passenger vehicles, station wagons, passenger vans, and recreational vehicles. It is not required on pick-up trucks, although manufacturers voluntarily have chosen to place it on them. This sticker lists the suggested price, options, etc.;
• EPA Fuel Economy label, which may be included in the MSRP label, re-
quired by federal law to be placed on the windshield or side window of passenger vehicles, station wagons, passenger vans, recreational vehicles, and pick-up trucks; and
• “New and Lease Car Warranty Law” sticker (yellow in color), required by state law (MGL Ch. 90, §7N½, and 201 CMR 11.23), providing information on a purchaser’s new vehicle warranty rights under state law.
Used Motor Vehicle Stickers:
• “Used Car Buyer’s Guide” sticker, required by the Federal Trade Commission, informing a potential purchaser of the warranty protection that accompanies the sale of the used vehicle by that dealer. The Buyer’s Guide must be posted prominently and conspicuously on or in a vehicle when a car is available for sale. It must be in plain view and both sides must be visible. You can hang the Guide from the rear-view mirror inside the car or on a side-view mirror outside the car. You can also place it under a windshield wiper or attach it to a side window. A Guide in a glove compartment, trunk, or under the seat is not conspicuous because it is not in plain sight. You may remove the Guide for a test drive, but you must replace it as soon as the test drive is over.
• “Used Vehicle Warranty Law” sticker (yellow in color), required by state law (Ch. 90, §7N¼, and 201 CMR 11.22), informing a consumer of his or her rights under the state used vehicle warranty law. Must be affixed to a window or placed on the dashboard.
• “Refund Rights” Sticker. When you ultimately sell a dealer-plated used motor vehicle to a customer who intends to use it for personal or family use, you must attach, at the time of delivery of the vehicle to the buyer, a “Refund Rights” sticker. This sticker is required under state law, MGL Ch. 90, §7N, and advises the buyer to have the vehicle inspected within 7 days after purchase. This sticker must be displayed in the left front window of the used motor vehicle at the time of delivery to the buyer. (No law prohibits you from placing this sticker on sooner if you
choose to do so.)
[NOTE: If you want to operate with a dealer plate, the required stickers must be on or in the vehicle. Failure to do so will likely result in a traffic citation and an RMV “Section 5” hearing, which may result in the suspension or revocation of one or more of your D-plates.]
No Inspection Sticker Required on Dealer-Plated Vehicle. Vehicles held for sale by dealers that are being used for demonstration purposes do NOT need, and should not have, an inspection sticker. This includes demos being driven by dealers (and others authorized to use D-plates) for PERSONAL purposes, as allowed by the law as described above. The regulation, 540 CMR 4.03, reads as follows:
“General Registration Holders. Every motor vehicle owned by a General Registration holder, except for motor vehicles held for sale and demonstration by a dealer, [emphasis added] shall be inspected pursuant to 540 CMR 4.00.”
However, every “regularly plated” vehicle operated by a dealership in Massachusetts must have an inspection sticker.
Vehicle in Transport? Customer Loaner? – What to Do. In April 2010, the RMV issued “An Advisory on Dealer Plates” to remind dealers of proper dealer plate usage and to address a number of issues that have arisen over time regarding the plates’ usage.
One issue we heard from dealers on was that of vehicle transport, for example, between the dealership and an auction or between a dealer’s different stores. In the 2010 Advisory, the RMV affirms, “…a dealer can use a Dealer Plate on vehicles the dealer buys or sells and transports to or from auctions, to or from other dealers’ lots and during delivery to a buyer.”
In the same Advisory, the RMV clarifies Dealer Plate usage for vehicles loaned to a customer interested in purchasing a particular vehicle: “A dealer can loan one of its motor vehicles with the Dealer Plates attached for the use of a customer for sale or demonstration purposes but, by law, it cannot do so for more than five (5) consecutive days. (Any attempt to extend the pe-
riod of use by re-loaning the vehicle for an additional period may subject the dealer’s action to review by the Registrar and result in disciplinary action against the dealer by the RMV.) When a dealer has signed a Purchase and Sale Agreement for a vehicle, the buyer can no longer operate the vehicle with the Dealer Plate.”
IRS Fact Sheet on EV Tax Credits
On August 21, the Internal Revenue service (IRS) published a Fact Sheet (available at www.irs.org) providing guidance on the 25E, 30D, and 45W clean vehicle tax credits terminating on September 30, 2025, under the One Big Beautiful Bill Act.
The Fact Sheet answers some, but not all, key questions for dealers and consumers regarding the September 30 deadline. The Fact Sheet explains:
• Acquisition and Claiming a Credit: If a taxpayer acquires a vehicle by having a written binding contract in place and a payment made on or before September 30, then the taxpayer will be entitled to claim the credit when they place the vehicle in service (namely, when they take possession of the vehicle), even if the vehicle is placed in service after September 30.
• Definition of “placed in service” versus “acquired”: A vehicle is “placed in service” when the taxpayer takes possession of the vehicle. A vehicle is “acquired” as of the date a written binding contract is entered into, and a payment has been made. A payment includes a nominal down payment or a vehicle trade-in.
• Credit Transfer Election: Taxpayers should wait until the time of sale (when the taxpayer takes possession) to make the credit transfer election.
• Time of Sale Reporting: Dealers should provide customers with a time of sale report when the customer takes possession or within three days of taking possession of the vehicle.
• Access to the Energy Credits Online Portal: While new user registration through the portal will close on Septem-
t he r oundu P
ber 30, the portal will remain open after September 30, so successfully registered users can submit time of sale reports, update such reports, and use the portal for other limited purposes.
Some key unanswered questions include:
• How the definition of “acquisition” operates in the context of leases under 45W;
• Whether the IRS will approve the late time of sale reports in “pending status” before the end of this calendar year; and
• How long dealers will be able to submit untimely time of sale reports, including through the spring of 2026 or prior to the April 15, 2026, tax deadline or October 15, 2026, extension period.
NADA remains in close contact with the Department of the Treasury and the IRS to determine answers to key questions and issues dealers face. NADA will update its members on any additional guidance regarding the clean vehicle tax credits as the information becomes available.
Local IRS Contact: In Massachusetts, Jeffrey Latessa, IRS - Communications & Stakeholder Liaison, is our local contact for these matters. Many may recall he was a guest speaker at last year’s annual meeting. Should you have questions, his email address is Jeffrey.L.Latessa@irs.gov.
New EPA Guidance to Mitigate Truck Engine Power Loss
On August 12, the Environmental Protection Agency issued voluntary guidance for engine manufacturers to update software on diesel trucks to eliminate the sudden loss of power and speed that can result under current diesel exhaust fluid (DEF) inducement protocols.
Manufacturers were already required to prevent engines from drastically losing power or shutting down after running out of DEF for MY 2027 and beyond.
Current DEF protocols, which are designed to support compliance with EPA’s 2010 NOx standards, can significantly reduce engine speeds to 5 mph, leading to safety and logistical disruptions. The EPA worked with manufacturers to develop new protocols that give truck operators more time to address faults before any decrease in vehicle performance occurs.
The California Air Resources Board released similar guidance and issued a Manufacturers Advisory Correspondence (MAC) informing manufacturers that the new EPA guidance “is consistent with California laws and regulations”, and manufacturers may seek approval for the strategies in the EPA guidance.
What is next: Manufacturers are developing software updates to be deployed as retrofits for engines across many different model years and configurations. Truck dealers should anticipate receiving communications and software updates from manufacturers to execute this update on vehicles in the field and in dealer inventory.
Annual Meeting – Oct. 10, Encore Boston Casino
We will be holding our annual meeting on Friday, October 10, at the Encore Boston Hotel and Casino, in Everett. We are in the process of developing our speakers line-up, running 1-5pm after our Noon welcome reception. The day will conclude with our cocktail reception, 5-8pm. Please use the registration information that we have emailed to you, or the registration form included on page 2, to sign up. We look forward to seeing you on October 10.
Our PACs - NADAPAC & NCDPAC
We appreciate the contributions we receive from our member dealers who answer our calls for donations to our PACs.
Each year MSADA expresses itself politically through NADA’s federal PAC, NADAPAC, and through our state PAC, the New Car Dealers Political Action Committee (NCDPAC). We depend on contributions from our dealers to keep these PACs strong, as we need to have an active voice in Washington and on Beacon Hill. Contributions to our PACs are an inexpensive insurance policy. Since by law we cannot use our membership dues or other association revenues for political contributions, the PACs help us to remain strong politically as we advocate for our dealers’ interests in the political process.
If you have not yet given to the PACs this year, please contact me at rokoniews-
ki@msada.org and we can make sure your contributions happen. Thank you.
MSADA Endorsed Vendor Services
Your Association has engaged several vendors this year for newly agreed upon endorsed services:
• Merchant Advocate works with retailers to analyze the credit card fees those businesses are charged and assessed in processing transactions. The savings can be considerable, as Merchant Advocate uncovers duplicate or unsubstantiated fees from the credit card companies. Over the last several years, they have saved retailers across the country over $400 million.
• Plug In America, through its PlugStar program, works with dealerships to train personnel, including salespersons, to be able to best address your customers’ needs and questions regarding electric vehicles. They presently work with dealerships in over 30 states to assist dealerships in the transition to EV sales and servicing.
• ComplyAuto works with dealers’ compliance efforts on privacy and cybersecurity platforms, FTC Safeguards Rule, advertising, AI-powered sales, workplace safety and OSHA-related rules, and HR policies and employee training.
• Sprague Energy works with businesses to analyze their electric and gas charges in an attempt to provide them with reduced charges for such services. Sprague works with a number of Massachusetts dealerships currently in those efforts. In addition, we want to remind you of several vendors who have been long-time partners of your Association:
• Ethos Group, who can improve your F&I products, services, and compliance.
• Reynolds & Reynolds, who, through its LAW Library program, is our partner for forms sales and compliance.
• Withum (formerly O’Connor & Drew), who is our accounting partner.
• American Fidelity, who can assist you with health and other insurance-based benefit products for your employees. Check out the ads for most of these companies in this month’s Auto Dealer. t
EGISLATIVE S CORECARD
AUGUST
2025
BILL# SPONSOR SUBJECT
S201
H406
H398
S271 H342
H365
S202 H424
Amendments to Ch. 93B, the auto dealer franchise law.
Rep Chan
Rep Finn Rep Howitt
S291
Sen O’Connor
Sen Crighton Rep Lewis
H474 Sen Velis
Rep Walsh
RTR Law amendment to fix consumer notice requirement.
Creates process to appeal improperly issued Class 1 license.
Modernize on-line vehicle purchase process.
S266 Sen Moore Amends definition of heavy-duty trucks in RTR law.
Open safety recalls notifications.
S228 Sen Feeney Protects consumer choice in vehicle service contracts.
S797 H1260 H1285
H1293
H1139 S812
H3406 S2185
H2386
H3535
Sen Crighton Rep Hunt Rep Puppolo
In Joint Committee on Consumer Protection; no hearing scheduled yet.
In Joint Committee on Consumer Protection; no hearing scheduled yet.
In Joint Committee on Consumer Protection; no hearing scheduled yet.
In Joint Committee on Consumer Protection; no hearing scheduled yet.
SUPPORT In Joint Committee on Consumer Protection; no hearing scheduled yet.
SUPPORT Joint Committee on Consumer Protection held public hearing on 4/14/25. H4284, redraft of H474, reported favorably and referred to House Ways and Means.
SUPPORT In Joint Committee on Consumer Protection; no hearing scheduled yet.
Sen Moore Rep McMurtry Rep Philips
Creates process to increase the insurance reimbursed labor rate paid to auto body repairers.
Protects consumer choice in vehicle service contracts.
Rep Donahue
Sen Oliviera
Rep Puppolo
Sen Moore
Rep Muradian
Rep Muradian
Regulates motor vehicle servive contracts
Creates process to delay ACT.
H3572 Creates process to delay ACC II and ACT.
S2360
H3603
Rep Soter
Sen Cronin
Rep Arciero
Eliminates initial state inspection for new vehicle.
In Joint Committee on Financial Services; no hearing scheduled yet.
Joint Committee on Financial Services held public hearing on 5/13/25.
SUPPORT Joint Committee on Financial Services held public hearing on 5/13/25.
SUPPORT Joint Committee on State Administration held public hearing on 7/22/25.
SUPPORT Joint Committee on Telecommunications, Utilities and Energy held public hearing on 5/14/25.
SUPPORT Joint Committee on Transportation held public hearing on 5/13/25. H3603 reported favorably and referred to House Ways and Means.
H3690 Rep Howitt Limit doc prep fee to $400. OPPOSE Joint Committee on Transportation held public hearing on 5/13/25. Reported favorably and referred to House Ways and Means.
H3676
H3677
S2371
S2374
H78
H80
H104
S29
S33
S45
Rep Gregoire
Rep Gregoire
Sen DiDomenico
Sen DiDomenico
Rep Farley-Bouvier
Rep Hogan
Rep Vargas
Sen Creem
Sen Driscoll
Sen Moore
Establishes requirements for e-titles and e-signatures on RMV and sales docs.
SUPPORT Joint Committee on Transportation held public hearing on 5/13/25.
Mass. Consumer Data Privacy Act OPPOSE Joint Committee on Advanced Information Technology, the Internet and Cybersecurity held public hearing on 4/9/25. Redraft S2516 reported favorably on 5/12/25, referred to Senate Ways and Means.
Massachusetts Junk Fees Regulations
New Duties Effective September 2, 2025.
Treble Damages in Play for Violations.
By Lauren Bailey Vice President State Legal and Regulatory Affairs, ComplyAuto
The Massachusetts Attorney General has issued new regulations targeting so-called “junk fees” along with subscription services and negative option features. Issued under the Massachusetts Consumer Protection Law (MGL Chapter 93A), the regulations reflect the Commonwealth’s comprehensive response to growing consumer concerns about hidden fees and subscription abuses.
Importantly, Chapter 93A provides a private right of action, meaning that consumers may bring individual legal claims for unfair or deceptive practices, including violations of these regulations. Courts can award up to treble damages, plus attorney’s fees and costs.
Dealers are generally exempt from the new “junk fees” requirements of the new regulations – as long as they comply with the current Massachusetts dealer advertising requirements – but will need to understand and comply with new disclosure and other requirements for any subscriptions, recurring charges, or similar products.
“Junk Fees” Rules: Dealers Exempt IF They Comply With Current Law
The cornerstone of the new regulation is the “Total Price” requirement, defined as the maximum price a consumer must pay for a product, inclusive of all fees, charges, and expenses. While it is important to understand these requirements and concepts, again, a dealer is not subject to the “junk fees” requirements of the new regulations covered under 940 CMR 38.04(1) through (4) and (6) so long as he or she complies with current Massachusetts dealer advertising law requirements. However, dealers can be held liable under 38.04(5) for misrepresenting that any fees, charges, or other expenses are required by law.
Remember, that includes the current requirement that an advertised price of a vehicle must include all non-governmental fees, including doc prep fees. Of course, that also means that if you fail to comply with this or any other of the current dealer advertising requirements, you will be subject to these new requirements.
Key new “junk fees” requirements include:
• Initial Price Presentation: Businesses must clearly and conspicuously disclose the Total Price at the time of initial presentation, along with the nature, purpose, and amount of all fees. For optional fees, companies must explicitly state their optional nature and provide clear instructions for avoidance.
• Final Transaction Disclosure: Before completing any sale, businesses must present the final transaction amount including
all products, shipping charges, and government charges, again identifying optional fees and avoidance methods.
• Prominence Requirements: Total Price must be displayed more prominently than any other pricing information, ensuring consumers can easily identify the true cost.
Subscription Services/Negative Options/Recurring Charges — Dealers Are Subject to New Rules
The regulations under 940 CMR 38.05 also place new requirements on recurring charges for products - whether a subscription, a negative option, or similar arrangements. These include new disclosure requirements as well as structures to streamline cancellation options for consumers. DEALERS ARE subject to these new requirements and should ensure that any product or service they sell or offer for sale, or present for sale meets these new requirements before September 2, 2025.
Pre-Purchase Disclosures: For any such product, businesses must provide clear written disclosure before purchase, including notification that charges will occur after trial periods, information about recurring billing, and detailed cancellation instructions.
Simple Cancellation Mechanism: Perhaps most significantly, the regulation mandates that cancellation must be “at least as easy” as the original sign-up process. This requirement includes:
• Same-medium accessibility (e.g., if consumers signed up online, they must be able to cancel online);
• For internet cancellations, availability through the same website or application;
• For telephone services, prompt answering during business hours at no additional cost; and
• For in-person sales, internet or telephone options plus, where practical, in-person cancellation.
Advanced Notice Requirements: For negative option fea-
MaSSaChuSETTS Junk FEE
Extended warranty products or maintenance subscription services fall under the negative option rules if they include automatic renewal features
tures exceeding 31 days, companies must provide written notice 5-30 days before the cancellation deadline, including financial obligations, affected products, cancellation mechanisms, and specific deadline dates.
Short-Term Subscriptions: For contracts of 31 days or less, businesses must provide either the advance notice described above or regular disclosure of charges and cancellation instructions at least as frequently as billing occurs.
Preparing for Implementation
Dealers should pay particular attention to any subscription-based services they offer, such as:
• Connected Vehicle Services: Many modern vehicles include subscription-based connectivity, entertainment, or safety services. These offerings must comply with the full negative option requirements, including simple cancellation mechanisms and advance notice provisions.
• Maintenance and Warranty Programs: Extended warranty products or maintenance subscription services fall under the negative option rules if they include automatic renewal features.
• Digital Service Subscriptions: Any dealer-offered digital services with recurring billing must meet the comprehensive subscription disclosure and cancellation requirements.
While many of these products and services may be presented for sale on behalf of a vendor, other third party, or even an OEM (for in-vehicle subscriptions for example), dealers may be brought under the new requirements depending on their role in the sale, offer, or presentation.
With the September 2, 2025, effective date approaching, businesses should audit their pricing presentation practices, subscription offerings, and cancellation processes. Auto dealers should verify their compliance with existing motor vehicle regulations while separately reviewing any subscription-based services for compliance.
Specifically, dealers are urged to work closely with their vendors and OEM partners to ensure that any such products offered by the dealer to a consumer include the required disclosures and cancellation mechanisms. While the regulations do not specifically require written disclosures, a written form signed by the consumer, is the best way for dealers to demonstrate compliance.
The full set of regulations (940 CMR 38.00) and a FAQ document from the Massachusetts AG’s Office follow this article.
A webinar from the AG’s Office is available at: https://www. youtube.com/watch?v=oePhQDNqxng.
“Merchant Advocate found a costly error—our software was not passing along all the necessary information—and worked directly with our provider to resolve the issue. We’ve already saved more than $70,000 as a result. I recommend having Merchant Advocate look at your account.”
–Denise Devoe, Corporate Controller
“Not only did Merchant Advocate uncover a significant optimization opportunity, but they also helped us replace 100 out-of-date terminals—for free! We are looking forward to more than $60,000 in savings in our first year. Merchant Advocate took care of everything—the process couldn’t have been any easier for us.”
–Jeb Balise, President
“Within the first two months of working with Merchant Advocate, we’ve saved over $4K in credit card fees across our 9 Merchant IDs! I wholeheartedly endorse Merchant Advocate for any business seeking to optimize their payment processing costs and enhance their financial health. Their vigilant monthly oversight of our statements ensures that we are not subjected to the pitfalls of an unregulated industry.”
–Joe Bonofiglio, C o r
Dealership Valuations – Optimizing Your Results
By Matt Marcoullier
CPa, albin Randall & Bennett
Many dealers we talk to might have a general idea of what it would take to get them to sell their store or what they would pay to acquire a new store. Few of them, however, are able to explain how they got to that number.
There are a lot of variables involved. When you are dealing with a family-owned business, there is also a subjective or emotional aspect to what you would be willing to accept or pay for a store.
This is where valuation experts come into play, providing an independent and objective measure of what a business is worth. Not all valuations are created equal, however, and it is important for dealers to use those familiar with the industry and its many nuances.
While dealers are often interested in what their store might be worth, there is generally a triggering event or requirement before a valuation is undertaken. Although there are many different reasons a valuation may be needed, it is important to understand your objectives and the implications of the valuation, and to make sure the valuation is being performed by a qualified professional that is familiar with the industry. Valuations can be fairly intensive, cost thousands of dollars, and have an indefinite shelf life (think about 2019 vs 2022 vs 2025), so you want to be confident in the product you are receiving.
The two most common situations where we see dealers seeking a formal valuation are for a transaction or in estate and gift tax planning.
In a transaction, you are going to want an objective measure of what your store is worth so that both parties can at least agree on a starting point. The seller wants
to maximize the value, and the buyer wants to pay as little as possible, which may necessitate each party obtaining an independent valuation and using some composite of the two.
In estate and gift tax planning, you are typically trying to arrive at the lowest justifiable value in order to use as little of your lifetime exemption as possible. The IRS requires the valuation to be performed by a qualified, independent specialist, but those who work with auto dealers regularly will have a better understanding of the operations.
By using a qualified appraiser that is familiar with the industry, you can be more comfortable that they are capturing the types of adjustments that are commonplace to auto dealerships. For example, if using an income-based approach, some of the common adjustments we would expect to see would be for fair market rent; related party fees or income; dealer/executive salary; inventory adjustments; etc.
experienced in auto dealerships will know to look for these and other similar items to make sure they’re addressed.
Additionally, other factors, like the franchise, will have a significant impact. Aside from the underlying product being sold, there are other key aspects in dealing with any particular OEM. Facility requirements, inventory allocation, investment in EV or other programs, and overall difficulty in dealing with an OEM can all impact what someone is willing to pay. Purchasing a store becomes a very different deal when you need to put $10 million into a new or updated facility or worry that the
The two most common situations where we see dealers seeking a formal valuation are for a transaction or in estate and gift tax planning.
It is not necessarily wrong to pay a dealer through W-2 wages vs management fees and/or distributions, but those will all appear in different areas of the financial statements and have different impacts on the bottom line. Such impacts need to be identified and quantified before arriving at a normalized earnings figure that could be used with blue sky multiples or similar approaches.
There may also be balance sheet items or off-balance sheet items that typically need to be adjusted. Are there any unusual items in inventory or dealer vehicles? Is there a reserve for chargebacks or “lifetime oil changes”? We do not typically see these items recorded, but they are potentially significant liabilities that can have a major impact on the valuation. A specialist
factory may veto a future sale.
Every industry has its own nuances, and the auto dealer industry is no exception. Although stores may seem interchangeable to the outside observer, those involved in the industry are familiar with the complex operations and circumstances that make each dealership different. Whether you are trying to expand your footprint, liquidate, or transfer to the next generation, these are all significant life events that should be carefully considered. When a valuation is necessary, you should consult your advisors to ensure they are helping you to identify an appropriate and knowledgeable specialist.
The Art of Selling – Mastering Solutions Through the Customer Interview
By Tim Marbut
Ethos group
In today’s competitive retail automobile marketplace, selling cars is no longer about persuasive talk or high-pressure tactics. The modern car buyer is well-informed, often walking into the dealership after hours of online research, equipped with comparisons, reviews, and even price quotes. They do not want to be “sold”; they want to be understood.
The true art of selling cars today lies in providing real solutions, and the foundation of that lies in one of the most powerful yet underutilized tools in the salesperson’s process: the customer interview.
From Pressure to Partnership: A New Sales Philosophy
For years, auto sales had a reputation for being high-pressure, fast-talking, and transactional. But that model is outdated and ineffective with today’s customers. Buyers now want to work with someone who listens, understands their needs, and helps them make a smart decision.
The modern automotive salesperson is not a persuader but a consultant. Their job is not to “push a car” but to uncover what matters most to the customer, whether that is safety for their family, fuel efficiency for a long commute, towing capacity for a boat, or technology for convenience. Selling becomes a partnership, not a battle.
The Customer Interview: The Heartbeat of Car Sales
The most important part of any vehicle sale is not the walk-around or the negotiation. It is the customer interview, the
initial conversation that uncovers what the customer truly needs, wants, and values in their next vehicle.
A rushed or shallow interview leads to generic presentations and misplaced recommendations. But a thoughtful, well-executed customer interview opens the door to trust, relevance, and ultimately, the sale. This interview is not a script; it is a conversation. It requires genuine curiosity, patience, empathy, and, most of all, active listening. The more insight the salesperson gathers, the more precise and impactful their presentation can be.
Asking the Right Information Gathering Questions
The effectiveness of the customer interview depends on the questions asked. Great salespeople do not just ask, “What
you are not selling; you are solving. You are helping the customer make a smart, informed decision based on their priorities. And in doing so, you remove objections before they even arise.
brings you in today?” and stop there. They explore deeper to personalize the experience:
• “What are you driving now, and what do you like or dislike about it?”
• “Who else will be driving or riding in the vehicle?”
• “Tell me about how you typically use your vehicle during the week.”
• “Second to price, what is the most important thing in your new car: safety, performance, appearance, comfort, economics, dependability or technology concerns?”
• “What does the ideal vehicle look like for your lifestyle?”
Each question peels back a layer. Instead of guessing or assuming, the salesperson uncovers exactly what matters to the customer. And more importantly, they show the customer that they care.
Listening: The Ultimate Competitive Advantage
Too often in automotive sales, salespeople ask questions only to jump into their pitch. True professionals know that listening, not talking, is what builds trust and rapport. When a customer feels heard, they begin to relax, share, and engage more deeply in the process.
As Zig Ziglar once said, “Selling is essentially a transference of feeling.” If the customer feels respected, valued, and understood, they are far more likely to make a confident buying decision, and to make it with you.
Matching Vehicles to Needs, Not Quotas
After the interview, the real magic begins, not in showing the most expensive vehicle on the lot, but in showing the right one. When you have taken the time to understand the customer’s situation, your presentation becomes personalized and purposeful.
Instead of saying, “This is one of our most popular models,” you are able to say, “Based on what you told me about needing space for your kids and weekend camping trips, this SUV has the third-row seating and off-road package that fits perfectly.” What you show is based on their individual need and value language.
Now, you are not selling; you are solving. You are helping the customer make a smart, informed decision based on their priorities. And in doing so, you remove objections before they even arise.
Selling Without Pressure
When a salesperson truly understands the customer and presents the right solu-
This interview is not a script; it is a conversation. It requires genuine curiosity, patience, empathy, and, most of all, active listening.
tion, pressure becomes unnecessary. The customer does not feel manipulated; they feel served. They move forward not because they were “closed,” but because they were confident in their decision. This approach transforms the customer experience. It builds loyalty, earns referrals, and creates a reputation that draws others in. In a business built on relationships and reputation, that is invaluable.
Building Long-Term Success
Car sales should not be about one-time wins; they should be about long-term relationships. A customer who feels genuinely listened to and helped is far more likely to return for their next vehicle, send in
friends and family, and leave positive reviews online.
Pressure tactics may create short-term deals, but they rarely build a long-term business. A solution-based approach, rooted in a deep and honest customer interview, lays the groundwork for repeat success and lasting trust.
Final Thoughts
The art of selling cars in today’s market is not about being the loudest voice in the showroom or the fastest closer. It is about being the most trusted guide. It is about listening, understanding, and matching the right solution to the right person at the right time.
Every customer who walks into the dealership has a story. The great salesperson is the one who takes the time to hear it, understand it, and respond with a solution, not a pitch.
Master the customer interview, and you master the sale. In automobile selling, the most powerful engine is not under the hood; it is in the conversation. t
For more information on how Ethos Group can help your dealership develop more leaders in your F&I office, sales management tower, and your sales floor in 2025, please contact Drew Spring at dspring@ethosgroup.com or (617) 6949761.
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Dealer Win in Texas Termination Case Could Help All Dealers
By Attorneys Tom Vangel, Jamie Radke, and Lindsey McComber, Harris Beach Murtha Cullina
A recent decision from the Texas Court of Appeals blocking the proposed termination of a Texas Subaru dealership serves as a win for dealers across the country and in Massachusetts.
The Court of Appeals affirmed the decision of the Texas Motor Vehicle Board, which held that Subaru had not established “good cause” to terminate the dealership. The Court analyzed the good cause factors under Texas law, which closely mirror the good cause factors under the Chapter 93B dealer franchise law in Massachusetts. This decision, therefore, provides important insight into how a Massachusetts court might balance the good cause factors in a termination dispute in the Commonwealth.
After receiving a termination notice in 2020, Bert Ogden Subaru filed a protest with the Texas Department of Motor Vehicles Board. Although it admitted that it did not meet its minimum sales responsibility (MSR) as defined by Subaru, the dealership challenged the appropriateness of the MSR metric and noted that its area of responsibility poses geographic challenges that other Subaru dealers do not face. The dealership further argued that Subaru had failed to provide sufficient inventory to comply with its sales requirements.
After an administrative hearing, the Board concluded that Subaru failed to show good cause for termination and granted the dealership’s protest. Subaru appealed this decision, arguing that the Board’s explanation for its good-cause determination was deficient.
Under Texas law, the Board must consider “all existing circumstances” to determine whether good cause to terminate a dealership franchise exists. These circumstances include:
(1) the dealer’s sales in relation to the market;
(2) the dealer’s investment and obligations;
(3) injury or benefit to the public;
(4) the adequacy of the dealer’s service facilities, equipment, parts, and personnel in relation to those of other dealers of new motor vehicles of the same linemake;
(5) whether warranties are being honored by the dealer;
(6) the parties’ compliance with the franchise, except to the extent that the franchise conflicts with the statute; and
(7) the enforceability of the franchise from a public policy standpoint, including issues of reasonableness of the franchise’s terms, oppression, adhesion, and the parties’ relative bargaining power.
When balancing these factors, the Board determined that three factors weighing in favor of termination, which affected only the dealership and Subaru, were outweighed by two factors that weighed heavily against termination and affected the public. In evaluating whether the termination would result in “injury or benefit to the public”, the Board found that “actual, nonspeculative harm to the public [] would ensue” if the dealership’s franchise was terminated. The Court concluded that the Board had “reasonably assigned it more weight than the other good-cause factors” and upheld the Board’s finding that the adequacy of the dealership’s facilities, equipment, parts, and personnel carried less significance. Regarding the harm to the public, the Board found that there would be no Subaru dealership in the area providing convenient access to warranty, recall, and repair services for at least some amount of time and that Subaru owners would have to drive to other cities for warranty and recall work. Thus, the appellate court held that “the Board reasonably concluded that, during this transition period, Subaru owners in the [region] needing warranty or recall work would be harmed” and that “the Board reasonably afforded more weight to the non-speculative benefits of the status quo[.]”
Although Subaru argued that the deal-
PLLC
er’s inadequate parts inventory should have weighed in favor of termination, the Court concluded that the dealership’s market area could be handled with a lower-than-average parts inventory and agreed that the issue should be accorded less weight.
These factors are similar to those that the courts in Massachusetts weigh to determine whether “good cause” exists for a manufacturer to terminate a dealer’s franchise agreement. Among other things, Courts consider whether it would be injurious or beneficial to the public welfare if the franchise agreement were terminated and whether the affected motor vehicle dealer has adequate motor vehicle sales and service facilities.
Like the Texas Court of Appeals, courts in Massachusetts are likely to show strong concern if the dealer can demonstrate that the public will be harmed by the loss of a local dealer to perform warranty or other recall work.
The recent decision out of Texas provides another dealer-friendly precedent that can be used in defending franchise termination cases. Dealers across the country have rightly complained for years that sales metrics such as MSR are self-serving statistics that do not adequately represent their efforts to meet their sales obligations.
Every termination decision provides an opportunity for dealers and their counsel to assess how the various “good cause” factors resonate with the administrative boards and Courts that decide termination cases and help create a road map for dealers who find themselves in the unfortunate position of defending a termination case. t
Tom Vangel and Jamie Radke are partners and Lindsey McComber is an associate with the law firm of Harris Beach Murtha Cullina PLLC in Boston who specialize in automotive law. They can be reached at 617-457-4072.
Driving Success with Pooled Employer Plans
By Dave Clayman CEO, Twelve Points Business advisors
In today’s competitive auto retail industry, attracting and retaining top talent is just as important as moving vehicles off the lot. Dealerships invest heavily in marketing, inventory management, and customer experience, but an equally powerful – and often overlooked – tool for long-term success is the Pooled Employer Plan (PEP).
A PEP is a retirement savings plan that allows multiple unrelated employers to participate in a single, professionally managed 401(k)-style plan. Instead of each business managing its own retirement plan with the associated costs, paperwork, and fiduciary liability, dealers can join a larger pool, gaining scale, efficiency, and peace of mind. For auto dealers who constantly balance operational complexity and narrow margins, a PEP can be the difference between simply keeping up and truly standing out as an employer of choice.
Why Auto Dealer Owners Should Pay Attention
Lower Costs Through Scale: Managing an individual 401(k) can be expensive, with administrative fees, compliance costs, and investment management charges adding up quickly. A PEP pools multiple employers together, spreading costs over a larger base. This often translates into lower fees for the business and better investment options for employees. For a dealership with dozens or even hundreds of employees, savings can compound into thousands of dollars annually, dollars that be reinvested back into operations or workforce development.
Reduced Administrative Burden: As an auto dealer, your focus is on sales, service, and customer satisfaction—not the nuances of retirement plan compliance. In a
PEP, much of the heavy lifting, such as plan administration, compliance testing, recordkeeping, is handled by professional fiduciaries. That means less paperwork, fewer errors, and more time to run your business. For many dealer principals, this reduction in distraction can feel like a hidden return on investment, allowing leadership teams to devote their energy to growth and innovation rather than red tape.
No Need for an Individual Retirement Plan Audit: For employers with more than 100 employees, their plan would no longer be subject to its own audit. They would participate in the PEP’s single audit, which saves significant administrative burden and cost – often $10,000 or more annually. For growing dealerships, avoiding this recurring expense can be an important factor in maintaining financial flexibility.
Shifting Fiduciary Liability: Running a retirement plan makes you a fiduciary, legally responsible for its operation. In a PEP, that responsibility shifts to the plan provider, dramatically reducing your risk exposure while ensuring employees still receive a high-quality retirement benefit. This shift can be particularly valuable for family-owned dealerships where owners prefer to focus on legacy, customer relationships, and community involvement rather than navigating complex ERISA responsibilities.
Benefits for Owners
Attract and Retain Talent: A competitive retirement plan is a major differentiator for skilled salespeople, service technicians, and management staff. Younger generations of workers, in particular, value financial wellness programs and will often weigh retirement benefits alongside salary when making career decisions.
Tax Advantages: Employer contributions are tax-deductible, and new plans may qualify for substantial IRS tax credits, sometimes covering much of the start-up costs. For smaller dealerships, these credits can make the adoption of a PEP nearly cost-neutral in the first few years.
Retirement Security for You: A PEP is
not just for employees; it is also a powerful vehicle for owners to build personal retirement wealth efficiently and with lower fees. Owners may be able to take advantage of higher contribution limits while benefitting from the same economies of scale their employees enjoy.
Benefits for Employees
Lower Fees, Higher Returns: Larger pooled plans can offer institutional-quality investment options, which often perform better over time. Reduced administrative and investment fees directly impact longterm savings growth, creating greater retirement security for employees.
Portability: Employees can take their savings with them if they change jobs, maintaining control over their retirement journey. This flexibility reassures employees that their investment in the plan remains theirs, regardless of where their career takes them.
Confidence in the Plan: With professional management and oversight, employees can trust their savings are handled with care. Many PEP providers also offer participant education and digital tools, helping employees understand and manage their retirement accounts with confidence.
The Bottom Line for Dealers
In an industry where margins are tight and competition for skilled talent is fierce, offering a retirement plan that is affordable, easy to manage, and competitive can give your dealership a real advantage. A well-structured PEP can serve as both a retention tool and a recruiting strategy, signaling to employees and prospects that your dealership values their financial future.
At Twelve Points Business Advisors, we help auto dealers integrate Pooled Employer Plans into their benefits strategy— streamlining operations, protecting owners, and building a stronger future for employees. It is time to take your dealership’s benefits program from “standard package” to “premium feature.” Let’s talk about how a PEP can drive value for your business.
FTC Myths vs. Reality –A Cybersecurity Perspective
By Robbie harriman
CiSa, Director, iT advisory Services, OCD Tech
In 2024, many in the automotive retail industry, including dealer associations and industry consultants, speculated that a second presidential term for Donald Trump would bring sweeping deregulation, including a potential slowdown in enforcement of rules like the FTC Safeguards Rule. We heard that belief circulated through 20 Groups, dealer forums, and vendor channels, prompting some dealers to question whether continued investment in cybersecurity compliance was necessary. However, recent research and enforcement data show that the expectation of lighter federal oversight may be more myth than reality, especially when it comes to the Federal Trade Commission.
At OCD Tech, we analyzed FTC enforcement activity across presidential administrations and found that the agency’s actions have been strikingly consistent regardless of who is in the White House. Let’s look at the data.
Myth #1: FTC Enforcement Is More Lenient Under Trump
When we compared full-term FTC enforcement activity in the auto industry between President Trump’s first term and President Biden’s term, we found nearly identical numbers:
• Trump: 19 enforcement cases involving the auto industry
• Biden: 20 cases
The same pattern holds when we zoom out to FTC enforcement across all industries:
• Trump: 925 total FTC enforcement actions
• Biden: 926 actions
This shows no meaningful difference in enforcement volume or intensity between administrations. Regardless of changes in leadership, the FTC has remained active in pursuing consumer protection violations, including those tied to cybersecurity and data handling.
Myth #2: A Second Trump Term Will Bring Immediate Deregulation
Some in the industry believed that a second Trump term would quickly reduce or delay enforcement of the Safeguards Rule. But enforcement patterns during the first 100 days of each term suggest otherwise.
In the first 100 days:
• Trump’s second term (2025): 2 enforcement actions in the auto industry
• Biden’s first term (2021): 0 actions in the auto industry
Across all industries:
• Trump: 49 FTC enforcement actions
• Biden: 51 FTC enforcement actions
Again, the numbers are virtually identical. The FTC has proven to be a nonpartisan enforcement body, continuing its oversight work no matter the political landscape.
The Real Enforcement Mechanism: Breach Reporting
One reason some dealerships downplayed the risk of FTC enforcement is that, historically, few enforcement actions have directly cited the Safeguards Rule. However, that changed in May 2024, when a new FTC breach notification requirement took effect. This rule mandates that covered entities, including auto dealerships, must notify the FTC within 30 days of discovering certain security breaches involving customer information.
This change created a built-in enforcement mechanism. If a dealership suffers a
qualifying breach and fails to report it, they are now subject to regulatory scrutiny, not based on a random audit but due to a failure to comply with a mandatory disclosure requirement. Insult on top of injury for a breached dealership.
The FAQ That Raised Eyebrows
In May 2025, the FTC published a new FAQ addressing common questions about the Safeguards Rule, including which businesses are covered, how to meet encryption standards, and what a written information security program should include. While the agency has not published any formal cases against auto dealerships under the Safeguards Rule, the timing of this FAQ was notable given that we saw several dealerships fall victim to ransomware attacks within the past year.
It came almost exactly one year after the CDK Global ransomware attack, which disrupted operations at over 15,000 dealerships nationwide. Though the FTC has not stated that the FAQ was issued in response to events like these, it is reasonable to interpret the publication as a proactive reminder: dealerships are still very much subject to the Safeguards Rule, and enforcement may simply be a matter of time.
State Laws: The Hidden Threat to Noncompliant Dealers
Even if federal enforcement seemed to pause — again, the data does not support that — it would not mean dealers are in the clear. As of July 2025, 19 U.S. states have passed comprehensive data privacy or cybersecurity protection laws, with most others having some sort of basic protection laws for residents, and many industry-specific ones at the state level. More states are introducing bills every year, and these laws increasingly apply to businesses that collect consumer or employee data.
Just weeks ago, Oregon proposed an
Cybercriminals are increasingly aware of Safeguards Rule requirements and use them to their advantage.
amendment targeting cybersecurity and data protection responsibilities within the auto industry, starting with manufacturers but potentially extending accountability to dealers. This is a trend worth watching, especially as many of these state laws carry private right of action provisions, enabling consumers to file lawsuits independently of government enforcement.
Litigation Risk: Class Actions and Ransomware Fallout
In several high-profile ransomware cases affecting dealerships over the past year, we have seen a sharp rise in class action lawsuits—filed not only by consumers, but also dealership employees whose personal information (including Social Security numbers) was exposed. Even when regulators do not act, civil litigation can be financially devastating.
Cybercriminals are increasingly aware of Safeguards Rule requirements and use
them to their advantage. In some cases, attackers have threatened to report noncompliant victims to authorities if ransom demands are not met. While this tactic has not been widely seen in auto retail yet, it is a known trend in other industries and further underscores the importance of timely breach reporting.
A Practical Path Forward
Fortunately, there is good news. Most federal and state data protection rules overlap significantly. The FTC Safeguards Rule, state privacy laws, and even consumer litigation risk can all be addressed by adopting foundational cybersecurity practices that protect customer and employee data.
At OCD Tech, our approach is rooted in the Center for Internet Security (CIS) Controls, a set of prioritized actions developed by experts to reduce risk. We help dealerships build risk-based, evolving information security programs that align
with legal requirements but are also practical and scalable. That means no wasted effort — just smart, defensible security strategies.
Conclusion: Focus on Risk, Not Rhetoric
Dealers do not need to obsess over political cycles to make smart decisions about cybersecurity. Enforcement data show that FTC action has remained steady, regardless of administration. More importantly, the risk landscape, such as ransomware, litigation, and state laws, is growing more complex.
Rather than guessing what Washington will do next, the safer bet is to treat compliance as a business risk, not a regulatory checkbox. The FTC Safeguards Rule is not just about rules; it is about protecting your dealership, your customers, and your employees from real and growing threats.
Patrick Manzi NADA Chief Economist
July 2025 Sales Finish Better than Expected
New light-vehicle sales in July 2025 were stronger than expected. July 2025’s SAAR totaled 16.4 million units, up 7.1% from June 2025’s SAAR and an increase of 3.7% year-over-year. July’s yearover-year comparison may have been larger, but July 2024’s results included sales that would have occurred in June 2024 were it not for the massive software outage that affected many dealerships across the country.
With just a few months left before EV tax credits are set to expire, we expected to see increased activity in the EV space. While BEV sales in July 2025 increased by 22.7% compared to June 2025, sales were flat when compared to July 2024. The same is true for market share year-to-date for BEVs, which totaled 7.4%—also flat year-over year. Meanwhile, plug-in hybrids, some of which are also eligible for the EV tax credit, saw sales and market share decline slightly yearover-year. The most popular alternative-fuel segment continues to be hybrids, which posted a 37.7% year-over-year sales gain in July 2025. Year-to-date, hybrids have also picked up 3 percentage points of market share.
According to J.D. Power, average incentive spending per unit should total $3,051 in July 2025, an increase of $273 compared to June 2025 and up $52 compared to a year ago. As vehicle prices have continued to rise, so too have monthly payments. According to J.D. Power, the average monthly payment on a new-vehicle finance contract is expected to reach $742, up $12 year-over-year. The average new-vehicle finance rate in July 2025 is also expected to be up yearover-year by 30 basis points to 6.54%.
July’s sales results exceeded expectations. Despite this strong performance, one month is not enough to adjust our full-year sales forecast of 15.3 million units. J.D. Power estimates that tariffs are adding $4,275 in cost per vehicle on average. Many OEMs reported significant impacts to their bottom line due to tariffs. It remains to be seen how long OEMs can absorb the price hikes before passing the costs along to consumers. We expect to have more clarity on changing OEM pricing strategies in the fall as 2025 models transition to 2026 models.
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By Scott Pearson
Chairman, american Truck Dealers
Truck Dealers Prepare for Washington Conference; Register for ATD Show 2026
Yes, we were just in D.C. in June for our annual flyin. But, as I have stated repeatedly over my tenure as ATD chairman, our advocacy cannot be a once-a-year cameo appearance as Summer vacation season begins.
NADA is preparing for its annual Washington Conference, September 8-10. Many state ATD leaders make it a point to also attend the Conference. The September Washington Conference gives us a second bite at the apple, especially on issues that concern us just as much as our car dealer colleagues, such as Trojan horse-like right-to-repair proposals being pushed by Members of Congress on both sides of the political aisle, reforms for financing the Highway Trust Fund, and lingering EPA emissions rules that could prove adverse to our industry. Following this column, check out the letter your ATD leadership sent to Congress regarding the right-to-repair legislation.
Check out the registration materials at www.nada. org if you wish to visit Members of Congress in September along with our auto dealer colleagues.
Finally, registration is now open for our ATD Show in Las Vegas next year, February 3-5. See the info below to sign up today.
Registration & Housing Now Open for ATD Show 2026!
By Maryann Malesardi NADA, Senior Manager, Event Marketing
Put the pedal to the metal: registration and housing are now officially open for ATD Show 2026! Join us at the luxurious Wynn Las Vegas, February 3-5, 2026 — that’s right, ATD Show 2026 starts on Tuesday! You spoke, ATD listened!
Register today to connect with fellow truck dealers and managers, OEM representatives, and industry leaders for three dynamic days of education, networking, and business solutions designed to move your dealership forward. And do not forget to bring your crew! Together, we are driving success.
Las Vegas is an exciting backdrop for both ATD Show 2026 and NADA Show 2026. And only ATD Show registrants get access to it all! And, with a high-octane NADA welcome reception at F1 Grand Prix Plaza, one of Las Vegas’ hottest new venues (see below), you will want to race to register!
Visit atdshow.org to secure your spot and book your hotel. See you at the Wynn Las Vegas in February!
NADA Show 2026: On Track to Wow
We could not keep this under the hood any longer.
Spoiler alert — yes, we do love a good racing pun — the welcome reception at NADA Show 2026 will be held at none other than the F1 Grand Prix Plaza in Las Vegas!
That’s right, on February 3, we are kicking things off in pole position with a high-octane evening of networking, entertainment, and fast-track fun in one of the city’s most exciting new venues.
Get ready to feel the adrenaline as you take in the sights, sounds, and even the smells of the raceway — with the iconic Las Vegas Strip as your backdrop. Expect a dazzling blend of LED displays, cutting-edge décor, and top-tier culinary offerings that highlight the very best of Vegas.
Join us for an exclusive look into the inner workings of Formula 1, with unparalleled access to the track, garages, and pit lane. The immersive experience features kart racing on part of the Las Vegas Strip Circuit®, driving simulators, and a showcase of classic memorabilia.
F1® DRIVE: Ready to get behind the wheel?
This high-speed karting adventure lets you race on part of the Las Vegas Strip Circuit®, marking the first time a karting attraction has operated on part of a Formula 1 track. Plus, enjoy a unique perspective inside the official team garages.
F1® X: Explore the most cutting-edge and interactive Formula 1 experience ever created. Get an up-close look at artifacts never-before-seen in North America from 75 years of the sport, including historic Ferrari, Lotus, and Red Bull cars. Also, design your own Formula 1 car, and experience the Las Vegas Strip Circuit® from the driver’s seat in a 4D environment.
The NADA Welcome Reception is known for delivering major horsepower, and 2026 will be no different. From pitstop challenges to cocktails and mocktails with your crew, expect thrilling entertainment, winning connections, and a turbocharged start to the Auto Industry Event of the Year.
Whether you are a longtime dealer or first-time attendee, you will want to be on the grid for this unforgettable night.
EPA Issues New Guidance to Mitigate Engine Power Loss from DEF System Faults
ATD Compliance Alert
On August 12, the EPA issued voluntary guidance for engine manufacturers to update software on diesel trucks to eliminate the sudden loss of power and speed that can result under current diesel exhaust fluid (DEF) inducement protocols.
Manufacturers were already required to prevent engines from drastically losing power or shutting down after running out of DEF for MY 2027 and beyond.
The California Air Resources Board released similar guidance and issued a Manufacturers Advisory Correspondence (MAC) informing manufacturers that the new EPA guidance “is consistent with California laws and regulations,” and manufacturers may seek approval for the strategies in the EPA guidance.
Current DEF protocols, which are designed to support compliance with EPA’s 2010 NOx standards, can significantly reduce engine speeds to 5 mph, leading to safety and logistical disruptions. The EPA worked with manufacturers to develop new protocols that give truck operators more time to address faults before any decrease in vehicle performance occurs.
Manufacturers are developing software updates to be deployed as retrofits for engines across many different model years and configurations. Truck dealers should anticipate receiving communications and software updates from manufacturers to execute this update on vehicles in the field and in dealer inventory.
Another One of California’s Trump-Proofing Planks Just Broke
The FTC is cancelling the trucking industry’s agreement to abide by California’s emissions rules.
By Alex Nieves, Politico
The Trump administration is taking away California’s backstop Trump-proofing tactic.
On August 12, the Federal Trade Commission announced an agreement with four heavy-duty truck manufacturers and their trade association, declaring California’s agreement with them to continue meeting the state’s zero-emission sales targets “unenforceable.”
With that, the Trump administration has kicked out one of the last remaining legs in California’s strategy to protect its nation-leading climate regulations — its voluntary deals with industry.
“The Commission’s swift action will put the Clean Truck Partnership squarely in the rearview mirror and prevent repeats of CARB’s troubling regulatory gambit,” Taylor Hoogendoorn, the deputy director of the FTC’s Bureau of Competition, said in a statement.
To recap: The California Air Resources Board signed a deal in 2023 with nine truck manufacturers to abide by California’s rules “regardless of whether any other entity challenges California’s authority to set more stringent emissions standards under the federal Clean Air Act” — i.e., in case President Donald Trump returned to power and tried to dismantle the state’s special authority to set
stricter-than-federal vehicle rules, as he did during his first term (and as he did again in June).
On August 11, prior to the FTC’s announcement, the companies (“original equipment manufacturers,” or “OEMs” in industry parlance) filed a lawsuit in federal court in Sacramento, arguing that they did not foresee this particular regulatory twist.
“The OEMs are in an impossible position,” Daimler, Volvo, International Motors, and PACCAR argued in the lawsuit. “The OEMs are subject to two sovereigns whose regulatory requirements are irreconcilable and who are openly hostile to one another. Each wields a hammer to enforce its will on industry, leaving OEMs — who simply seek to sell heavy-duty trucks in compliance with the law — unable to plan with the necessary certainty and clarity where their products need to be certified for sale and by which regulatory authority.”
Environmentalists say that argument, which came just days after the U.S. Justice Department sent a cease-and-desist letter to CARB, doesn’t pass the smell test.
“The Clean Truck Partnership was designed exactly for a moment like this,” said Adam Zuckerman, senior clean vehicles campaigner with Public Citizen’s Climate Program.
CARB declined to comment on the litigation or the FTC’s move. But a former CARB official who helped negotiate the 2023 deal said it represents a significant softening of California’s regulatory hammer, especially after the loss of its EV sales mandate for light-duty vehicles.
“It’s bad,” former CARB deputy executive officer Craig Segall said about the potential impacts to the state’s pollution-reduction efforts. “They’re still going to sell some electric trucks, but it’s somewhere between bupkis and inadequate.”
It is unclear how the other companies that signed on to the deal, including Cummins, Ford, General Motors, and Stellantis, will react after not joining the lawsuit or being named in the FTC announcement. A spokesperson for Hino Motors declined to comment, while the other companies did not respond immediately to requests for comment. The Truck and Engine Manufacturers Association, which joined the FTC agreement but not the lawsuit, also did not respond.
California still has one of the companies on its side, at least in the light-duty sector. Stellantis, which inked a deal last year to follow the state’s EV sales rules even if they went away, reaffirmed its commitment in June after Trump signed a resolution revoking the EPA waiver California needs to enforce it.
Segall argued that the four truck makers’ retreat from their ZEV commitments will not stop a long-term global trend towards zero-emission models that will benefit California. He said the state still has tools at its disposal, like offering incentives for companies and fleets that buy electric trucks, and excluding those who do not.
“It’s not like there’s any statute making California buy from these [companies], or any statute requiring it to provide particular incentives to them,” Segall said.
California could put that plan into action soon. State agencies are supposed to deliver recommendations for bolstering the EV
market to Newsom’s office, after the governor signed a June executive order that directed CARB to start developing new regulations and suggested the state offer preferential treatment to companies that continue to work towards electrification goals.
Tariffs and Trucking: A Look at Where We Are Now
By Beth Colvin Associate Editor, Trucks, Parts, and Service
A new spate of tariffs came out of Washington, D.C., in early August, including higher levies on India and Brazil, and a pause, at least for now, on higher tariff rates on China. The results of these tariffs remain to be seen on a global, interconnected supply chain, both inside of trucking and out.
“Suppliers are essential to keeping more than 14 million trucks on the road, building, maintaining and repairing the vehicles that move critical goods and services,” says Shannon O’Brien, aftermarket commercial vehicle lead, MEMA Aftermarket Suppliers.
“The commercial vehicle aftermarket depends on a complex global supply chain that takes time to adjust to tariff changes. While suppliers are working to respond to recent announcements, many small- and mid-sized companies are already feeling the strain and lack the resources to absorb sudden cost increases.”
Here is where we stand now.
Which countries are affected?
Brazil and India, as of press time, face some of the highest tariffs at 50% each. China, which earlier this year faced triple-digit tariffs, is holding steady at 30%, for now. Negotiators are working on a permanent agreement between the U.S. and China, with Trump signing another 90-day pause on additional Chinese tariffs on August 11.
Mexico is facing a 25% tariff with a possible increase to 35%, which is where Canada sits. However, goods covered by the U.S.-Mexico-Canada Agreement, negotiated during the first Trump term, are exempt. For now, this covers many commercial vehicles and parts.
Other tariff rates include Australia at 10%, Germany at 10%, Thailand at 19%, South Africa at 30%, and Japan at 15%. There are exceptions, such as some energy products from Australia and the USMCA-covered goods.
Will commercial vehicles stay exempt?
That’s still up in the air. The Bureau of Industry and Security, part of the U.S. Department of Commerce, initiated an investigation in April to determine if imports of medium- and heavy-duty trucks and truck parts are a threat to national security.
“A strong and resilient automotive and truck industry is vital to our national security,” says Under Secretary of Commerce for Industry and Security Jeffrey Kessler. “Under President Trump’s leadership, the Commerce Department will work to support this vital sector and carefully assess the risks posed by external threats and supply chain vulnerabilities.”
Section 232 investigations, which is the part of the federal code that allows for these inquiries, often preceded tariff rulings from
the Trump administration. A copper investigation was ordered in March; the White House issued a universal 50% tariff was issued August 1.
“Additional measures, such as potential Section 232 tariffs on commercial vehicles and parts, could further threaten an industry already facing a prolonged freight recession,” O’Brien says. “Rising costs may cause fleets to buy fewer trucks, delay safety technology investments, and postpone maintenance or parts replacement.”
Are any other goods exposed to a universal tariff?
Yes. And it could affect the transportation industry.
As of August 11, there is a 50% tariff on all steel and aluminum imports and steel derivative products, excepting those from the United Kingdom. Steel and aluminum are critical materials for the trucking industry, especially trailers. This could put upward pressure on trucks and parts.
The Budget Lab at Yale shows a 10.8% increase in transportation equipment in the short-term and a 6.4% increase in the long run. Certain are set to go up 41% and 17.3%. Amid those increases, transportation costs are expected to hold steady in the short-term and rise a mere 0.7% over the long run.
What does this mean for the U.S. economy?
It is really tough to say. Consumers have not faced tariffs this high since the 1930s, and it is still not an apples-to-apples comparison. The Budget Lab says it expects prices to rise 1.8% because of tariffs, or about $2,400 per American household. This assumes the Federal Reserve holds the line on interest rates.
Yale’s analysis also says tariffs will weigh on U.S. GDP growth, nudging it 0.5% lower in 2025 and 2026. Longer term, it predicts a 0.4% smaller U.S. economy, the equivalent of $125 billion. There is bad news for the labor market too. The Budget Lab shows 0.3% higher employment rising to a 0.7% increase by 2026. By the end of this year, it says 505,000 jobs will be struck from payrolls nationwide.
The consumer price index jumped 2.7% in July, which is an increase, but still slightly less than many analysts expected. Is it all depressing news?
Depends on who you talk to.
In the long run, Yale does see an expansion of U.S. manufacturing by 2.1%. But there will be an offset, with construction output contracts declining 3.6% and agriculture dropping 0.8%. The government is also collecting a lot of money from these tariffs. The Budget Lab predicts collections of $2.7 trillion from 2026-2035. However, $475 billion in negative dynamic revenues bring the total down to $2.2 trillion.
Treasury data shows that, in June, customs duties jumped 301% year over year to $27 billion in collections. It seems like a huge amount of money — and it is — but it pales in comparison to where most of the federal tax receipts come from. For instance, the largest share of federal taxes come in the form of individual income taxes, FICA and Social Security taxes. That collection for June was $424 billion.
NADA Preps for Washington Conference While Show 2026 Is Right Around the Corner
Scott Dube, Partner at McGovern HyunDai rt. 93, rePreSentS naDa’S MaSSacHuSettS MeMberS on tHe naDa boarD of DirectorS He can be reacHeD at SDube@ McGovernauto.coM.
As Team MSADA prepares to head to our Nation’s capital for our annual NADA Washington Conference, registration is open for our NADA Show 2026 in Las Vegas, running February 3-6. Our Show staff are planning a great line-up of speakers, workshops, educations sessions, Super Sessions, a soldout expo hall, and our Thursday night kick-off night party at the F1 Race Grand Prix Plaza. Register today at www.nada. org/nada-show-attend so you do not miss out on our 2026 Show.
A Message from NADA Chairman Tom Castriota
First, I want to sincerely express my gratitude in serving as this year’s Chairman. If there is one thing I have learned since taking on this role, it is that we can accomplish anything when we work together.
As you know, earlier this year, NADA, along with the Texas Automobile Dealers Association, successfully challenged the Vehicle Shopping Rule in a case against the FTC. And thanks to dealers nationwide who contacted their representatives, we stopped CARB’s harmful ZEV sales mandates that would have impacted dealers throughout the country. Just under a month ago, the president’s “One Big Beautiful Bill” secured critical tax provisions that will help dealers and our customers. 2025 has been a banner year for dealers!
NADA is now turning its focus toward EPA’s EV standards, Chinese automakers, tariffs, AI, and our consumer experiences.
MSA -
The Biden EPA’s EV standards, which would require 26% of new vehicles to be electric by 2027 and 56% by 2032, are not in line with market demand. Despite billions invested, EVs make up less than 8% of market share. Expecting 26% of car buyers to switch to EVs within two years is unrealistic. Instead of revising the rules, the Trump administration is proposing to eliminate the ability of the EPA to regulate greenhouse gasses (which are CO2 emissions) from vehicles entirely, based on their finding that greenhouse gasses may not “reasonably be anticipated to endanger public health or welfare.” NADA is
in the process of reviewing the proposed rule to assess the impacts it could have on dealers and customers.
Chinese OEMs present complex challenges to dealers and pose a threat to our national security and our legacy OEMs. NADA’s board completed surveys regarding Chinese automakers, and we are evaluating them so that we can formulate a policy that best represents our dealers and the country. After visiting China, Great Britain, Italy, and returning from Australia and Canada, I now have a better understanding of the economic threat China currently poses as a global automotive power.
In late August, I will travel to Brazil to meet with GM and Brazilian dealers who sell our brands as well as Chinese models. Since the Chinese government subsidizes the production of these cars, American manufacturers are less able to compete. Granting China access to this market could have serious and damaging consequences for many of the brands we sell.
We continue to address the effects of tariffs and hear from dealers (and OEMs) about how the situation affects their businesses. NADA is engaging in detailed discussions with the administration about the impact on car dealerships, consumers, and American-owned businesses. NADA will continue to keep our members informed about the evolving landscape of tariffs and update them on any significant developments.
Artificial Intelligence (AI) promises to transform the industry and the world as we know it, and no one knows precisely what those changes will entail yet. We need to continue learning about AI and explore how it can revolutionize our businesses and enhance the consumer experience. NADA Vice Chairman Rob Cochran heads a working group of dealers and staff to help NADA serve as the conduit for dealers and be a resource for them in this ever-changing (daily) technology.
We have had a tremendous year so far and have achieved some truly impactful wins (and I thank you for your support).
I look forward to the second half of 2025 and the ongoing success of NADA, and I am eager to share what I have learned during my travels and discussions with our global dealer partners, as well as their valuable insights and experiences as we confront major changes to our industry.
Semper Fi.
NADA Issues Update
Tom
The following is the August 2025 Issues Update from NADA President and CEO Mike Stanton Tariffs
The Trump administration in July announced agreements with Japan, the European Union, and Korea that will reduce the existing 25 percent tariffs on imported automobiles and
auto parts to 15 percent. On July 31, President Trump raised tariffs on about 70 countries that have not made new trade deals with the United States, effective August 7. We are still analyzing the orders, but it does not appear the new tariffs will apply to auto and auto parts.
Key Takeaways: First, while the tariff reduction provides some relief, 15 percent tariffs are still higher than previous tariffs and will still impact vehicle price and availability. Second, if the past is any indication of the future, this issue could still be evolving.
NADA has advocated against the imposition of tariffs on autos and auto parts from U.S. trading partners with the Administration, emphasizing the effect tariffs will have on vehicle affordability, vehicle sales, and dealership viability. NADA has met with the White House, Office of the U.S. Trade Representative, Department of Treasury, Department of Commerce, other government agencies, and Congress to discuss the impact of tariffs on dealers and consumers.
NADA remains committed to engaging the Administration to best inform its decisions. We will continue to urge decision-makers in Washington to acknowledge that franchised auto dealers are fully American businesses, predominantly small businesses, and that tariffs impact them regardless of whether they sell domestic or international vehicles.
EPA’s EV Mandates
On July 29, the Trump administration proposed a new rule that would eliminate the EPA’s ability to regulate greenhouse gasses from vehicles, which was the basis for the Biden-era EV mandate. If the rule is finalized, Biden-era EPA greenhouse gas rules will be revoked.
The proposed rule would create a seismic change in the regulatory environment regarding tailpipe emissions and could have significant impacts on the auto industry from changing the types of cars automakers manufacture to vehicle supply and consumer preferences. NADA is in the process of reviewing the proposed rule to assess the impact it could have on dealers and other federal tailpipe regulations.
The proposal will go through a lengthy review process before it is finalized, likely in 2026. If finalized, we expect a variety of court challenges. Although the Biden-era CAFE rule is unaffected by this proposed finding, NHTSA is expected to propose revised rules in the coming months.
NADA’s position: NADA CEO Mike Stanton released a statement following the announcement: “NADA, ATD, and their members thank President Donald Trump and the EPA Administrator Lee Zeldin for recognizing the need to reverse the previous Administration’s EV mandates and GHG rules. These policies would raise the prices of cars and trucks, reduce consumer choice, and limit fleet turnover. We look forward to stocking and selling safe, affordable, and reliable cars and trucks that customers want and that meet their budget.”
NADA is also supporting a bill that would prevent the EPA mandates from going into effect while the proposed rule is
being finalized. This bill is a separate effort to stop the EV mandates from the rule Trump proposed on July 29 but illustrates the variety of tracks NADA is taking to combat these mandates.
Catalytic Converter Anti-Theft Legislation
The PART Act (S. 2238) was reintroduced in the Senate by Sens. Amy Klobuchar (D-Minnesota) and Bernie Moreno (R-Ohio). Reps. Jim Baird (R-Indiana) and Betty McCollum (D-Minnesota) are expected to introduce companion legislation in the House soon. The reintroduced bill includes non-controversial revisions to help increase support for the legislation.
This legislation addresses a major concern for dealers as it will require new vehicles to have unique, traceable identifying numbers stamped on catalytic converters at the time of assembly. The bill also establishes a federal criminal penalty for the theft, sale, trafficking or known purchase of stolen catalytic converters.
Catalytic converters are being stolen at increasingly higher rates because they contain valuable metals, such as rhodium, platinum and palladium. Thieves can easily steal catalytic converters from vehicles. Since they are not readily traceable, there is a lucrative market for these stolen parts. These thefts are costing millions of dollars to businesses and vehicle owners alike. In addition, for consumers, replacing a catalytic converter is costly and often difficult due to the part’s high demand and supply chain shortages.
Despite the widespread support for the PART Act, the Alliance for Automotive Innovation is the only organization that is publicly opposing the legislation.
Tax Legislation
President Donald Trump signed into law the “One Big Beautiful Bill Act” (H.R. 1) on July 4. For NADA members, the passage of the bill represents another significant victory this year, as many of the association’s tax priorities were addressed.
NADA fought for many favorable tax provisions that were included in this landmark legislation such as making permanent the pass-through deduction, estate tax exemption, reversion to EBITDA for the interest deduction limit, and bonus depreciation. The Senate’s version of the bill would have retroactively repealed the EV tax credit for leased EVs; NADA strongly opposed this provision. The final bill included NADA’s request for a reasonable phaseout (September 30) for the tax credit.
Volkswagen/Scout
The California New Car Dealers Association (CNCDA) has filed a lawsuit with the Superior Court of California against Volkswagen Group and Scout Motors Inc., seeking to block the company’s plans to sell vehicles directly to consumers in the state. The lawsuit asserts that Volkswagen is illegally competing with its dealer partners through its affiliate, Scout Motors. CNCDA’s lawsuit follows the same legal action tak-
en by Florida VW and Audi dealers in Miami-Dade County Circuit Court earlier this year to block Scout’s direct-sales attempt in the state.
Since VW AG signaled the reemergence of the Scout brand in the U.S., NADA has directly and publicly communicated to VW and Scout leadership that the franchise system is the best and most-efficient way to deliver the customer experience that today’s marketplace demands.
NADA will continue to work with state and metro dealer associations to protect the franchise system and stand behind our Volkswagen and Audi dealers across the country.
CARB ZEV Mandate
In June, President Donald Trump signed into law three NADA-backed Congressional Review Act resolutions (CRAs) that revoked California’s ability to ban gas/hybrid cars and diesel trucks. NADA Chairman Tom Castriota and NADA President and CEO Mike Stanton attended the White House signing ceremony. Enactment of this legislation was a tremendous win for car and truck dealers and their customers.
Following the president’s signing, California’s Attorney General filed a lawsuit against President Trump and EPA Administrator Lee Zeldin, claiming that these actions are unlawful. Ten other states that were enforcing California’s now defunct car and diesel truck ban rules joined the lawsuit.
California’s EV mandates were completely out-of-step with consumer demand and economically unachievable. Had they remained, the result would have been higher car and truck prices, and diminished vehicle choice for consumers nationwide.
NADA/ATD continue to monitor California’s litigation, which is unlikely to succeed, and is prepared to intervene in defense of the CRAs.
Sony Honda Mobility
The California New Car Dealers Association (CNCDA) announced it was investigating Sony Honda Mobility’s direct-to-consumer distribution plan regarding its Afeela 1 electric sedan, to see if the joint venture between both Japanese giants violates the state franchise law. CNCDA took similar steps late last year with VW/Scout, which subsequently led to legal action. Earlier this year, Sony Honda Mobility announced the starting prices for its Afeela vehicles and its intentions to sell those vehicles directly to consumers.
Like the consequences with the Scout brand, any direct-sales model would, to say the very least, undermine any automaker’s relationship with its franchised dealers, all of whom have made significant investments in their current and any future brands. NADA has made it clear to Honda that any misguided attempt to bypass or undercut its U.S. dealers will be challenged in statehouses and courthouses across the country – with NADA’s full support.
NADA will pursue this issue with the same seriousness with which it is approaching the VW/Scout brand issue. This work is ongoing, and NADA will keep Directors and dealers informed as events warrant.
Hotels Are Going Fast — Register Today for NADA Show 2026
By Maryann Malesardi NADA Senior Manager, Event Marketing
NADA Show 2026 kicks off Tuesday, February 3, in Las Vegas, and with 20,000-plus attendees expected, discounted hotel rooms are filling fast. Don’t miss your first choice.
NADA partners with top hotels to offer you the best rates. How to choose? Think location, location, location. Properties close to the Las Vegas Convention Center offer unbeatable convenience. But the demand is high for these and other legendary properties.
Join thousands of dealers, managers, OEM reps, and industry partners for the Auto Industry Event of the Year.
From game-changing education sessions to an expansive Expo packed with the latest innovations, plus franchise meetings and more, there is something for everyone. NADA Show delivers the tools, insights and connections you need to drive your dealership’s success in 2026 and beyond.
Do not wait. Register online today at www.nada.org/nada-show-attend.
Main Stage Speakers Announced
We also recently announced our Main Stage speakers. These world-class keynoters are champions of resilience, leadership, and peak performance. And they are bringing bold insights, big energy, and a fresh perspective to Las Vegas. Here’s who’s taking center stage:
Jon Dorenbos: Best known as the long snapper for the Philadelphia Eagles, where he earned two Pro Bowl selections (2009 and 2014), Jon Dorenbos is a world-class magician who wowed audiences as a finalist on America’s Got Talent. Through humor, heart, and sleight-of-hand, Dorenbos shares unforgettable lessons learned in overcoming adversity with resilience, grit, and positivity.
Molly Fletcher: Hailed as the “female Jerry Maguire” by CNN, Molly Fletcher spent nearly 20 years as a top sports agent, representing more than 300 of the world’s elite athletes and coaches. She draws from her unique experience breaking barriers in a male-dominated industry to help others unlock their full potential.
Magic Johnson: From the court to the boardroom, Earvin “Magic” Johnson has built a billion-dollar business empire on hustle, heart, and vision. The two-time Hall of Famer, Olympic gold medalist, and Presidential Medal of Freedom recipient leads Magic Johnson Enterprises, with investments spanning sports, tech, infrastructure, and financial services. He offers a glimpse at his playbook for success and what it takes to lead teams to greatness — in sports, in business, and in life.
Finally, Main Stage will also feature exclusive updates from NADA leadership, compelling insights from industry thought leaders, and the presentation of the 2026 TIME Dealer of the Year.
