rAteS inquire for multiple-insertion discounts or full Media Kit. e-mail jfabrizio@msada.org
oPs: SieM & Soc – Why your Dealership needs them
A Couple of Steps Closer to Resolution
By Jeb Balise, MSADA President
This month we saw our hard work trying to resolve our ZEV mandates problem come to fruition down in D.C. and back home at the State House.
For over a year we have been grappling with mandates imposed by the California Air Resources Board, which Massachusetts must follow under state law passed in the early 1990s, regarding zero-emission cars and trucks as well as stringent new rules on NOx emissions for heavy-duty trucks. The approach to resolving these problems took two paths: one, through the Trump Administration and the Republican-controlled Congress and, the second, via Beacon Hill and our state Legislature and the Healey-Driscoll Administration. Ironically, in the late innings, action occurred simultaneously in both worlds.
While the Healey Administration, several months ago, pushed off the NOx rule until January 1, 2026, the car and truck ZEV mandates lingered. Dealers and your lobby team met with legislators and the Administration throughout the year to request relief from the mandates, which began with MY25 for trucks and MY26 for cars at levels that no manufacturer had a realistic shot of attaining.
In the meantime, the Trump EPA, under the Congressional Review Act, teed up a longheld promise from the president – revocation of the CARB waivers allowing for the mandates. Ultimately, the U.S. House and Senate this month voted to rescind the waivers on the Advanced Clean Cars II, Advanced Clean Trucks, and the Heavy-Duty Omnibus NOx Emissions rules. The three resolutions now go before the president, who has said he will sign them.
The federal events did not happen without controversy regarding whether the matters were even before Congress appropriately. Although the CRA does not allow for judicial review of such matters, we anticipate litigation coming from California in support of their own rules and the EPA waivers.
While the federal drama played out, Gov. Healey, on April 14, pushed off for MY25 and MY26 enforcement of ACT, and then did the same for ACC II – for MY 26 and MY27 – on May 23. We are greatly appreciative of the governor’s efforts, especially as it will allow for an enforcement pause should any federal litigation enable the mandates to remain in place as any lawsuit flows through the courts. From the start, these are mandates that fall on the vehicle manufacturers, yet the ones who would suffer the most are our dealers, their customers, and employees.
A special thanks goes to our Executive Vice President, Robert O’Koniewski, for his stewardship and timeless efforts towards a successful result. Also, I want to express my thanks to the governor and lieutenant governor, legislators who supported us as we took the fight to Beacon Hill during the budget debates and legislative public hearings, and especially to our dealers and staff who made the calls, sent the emails, and attended meetings to push this matter to the forefront. Without those efforts, we would not have seen any success here or in D.C
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
ACV Auctions
MSADA A SS oci Ate M e M ber S D irectory
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
Electric Supply Center
Jennifer Williams (781) 265-4272
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
iHeart Media
Jane Cogliano (781) 844-8951
JM&A Group
Chris “KC” Hwang (954) 415-6961
JM Electrical Co.
Christopher Cedrone (781) 581-3328
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
Priority Payments Local
Andrew Pollina (732) 372-4352
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
US Bank
Vincent Gaglia (716) 649-0581
Wells Fargo Dealer Services
Rich DeFreitas (857) 205-2780
Withum
Kevin Carnes (617) 471-1120
Zurich American Insurance Company
Steven Megee (774) 210-0092
Governor, Congress Take Steps Toward ACC II Relief
By Robert O’Koniewski, Esq. MSADA Executive Vice President
rokoniewski@msada.org
Follow us on X (formerly Twitter) • @MassAutoDealers
Over a year of lobbying our state administration officials and legislators culminated this month with the Healey-Driscoll Administration announcing a pause for the third piece of the state’s current commitment to the zero-emission car and truck mandates as well as truck emissions issued by the California Air Resources Board.
On May 23, the administration’s Department of Environmental Protection announced enforcement discretion for manufacturers that are unable to meet minimum zero-emission vehicle (ZEV) and plug-in hybrid electric vehicle (PHEV) inventory mandates required under the Advanced Clean Cars II (ACC II) rule for Model Year 2026 and 2027.
Manufacturers that cannot meet those mandated requirements will receive relief for MY 2026 and 2027, provided they make internal combustion engine (ICE) passenger cars and light-duty trucks available to franchised dealerships seeking those vehicles. This approach gives manufacturers more flexibility and eases the challenges dealers are facing, while keeping the state on track to achieve critically important emissions reductions.
However, in order to enjoy enforcement discretion, in addition to supplying ICE vehicles to dealers, each manufacturer also must provide on a quarterly basis starting July 1, 2025, through July 1, 2027, reports detailing its efforts to: promote and market ZEVs; provide ZEVs for ride and drive events; increase deployment of charging infrastructure including investments in fast charging, level 2 charging, and home charging options; educate and train dealerships including sales and service staff on sales and maintenance of ZEVs; and
increase ZEVs in fleets and ridesharing and ride hailing services. Manufacturers that do not meet these conditions will continue to be subject to all regulatory requirements under the ACC II rule for Model Year 2026 and 2027.
This month’s DEP action followed its delay of the heavy-duty omnibus NOx emissions (HDO) rule late last year until January 1, 2026, and its April 14 decision to delay the Advanced Clean Trucks (ACT) rule for MY 2025 and 2026.
Almost simultaneous with Gov. Healey’s actions, while the requirements for ACC II are presently in effect, the U.S. House and U.S. Senate have voted, under the Congressional Review Act (CRA), to revoke the EPA waivers issued to the California Air Resources Board for ACC II as well as the Advanced Clean Trucks rule and the heavy-duty omnibus NOx emissions rule, thereby commencing the process to revoke those rules. (As detailed in previous bulletins, the House votes occurred on April 30 and May 1, and the Senate voted on May 22.) The Congressional actions occurred not without legal controversy, however, especially in the Senate. The three Congressional resolutions now go before President Trump for his consideration and signature; the president previously indicated he would sign them.
Although the CRA itself prohibits judicial review of Congressional and presidential actions to revoke a rule, we can expect litigation generated by CARB and other interested parties upon the president’s signature on the resolutions based, most likely, on at least one argument that the waivers were improperly before Congress. Hence,
regulatory relief from the Healey-Driscoll Administration on ACC II, as well as the previously granted relief on ACT and HDO, is greatly appreciated by MSADA and our member dealers while any litigation plays itself out in the federal court system, which operates under an indefinite timeframe. We thank all our dealer members who have been active with us in our discussions with the Administration and legislators as we advocated for relief from the onerous mandated requirements under ACC II.
See this month’s cover story for the full text of DEP’s May 23 announcement regarding ACC II.
State Budget Process Continues
The most important job our governor and legislature have is the funding and administering the mechanisms of government. Considering that over the last 40 years our state budget has grown from $6 billion to our current fiscal year (FY) 2025 appropriations of $58 billion, it is a massive undertaking.
FY 2026 begins on July 1, 2025. To kick off the budget process, Gov. Maura Healey unveiled in late January her proposed $63 billion budget, an almost 7% increase over current FY25 spending. Subsequently, House and Senate budget writers conducted a series of statewide hearings to receive input from the public on state budget priorities.
Subsequently, the House Ways and Means Committee put forth its FY26 plan on April 16. The House completed its three-day debate on April 30, approving on a 151-6 vote the $61.5 billion spending plan, which included no tax increases and came in at about $500 million below the governor’s initial proposal. House Democrats were united in their support of the bill while there were divisions within the 25-member House Republican caucus, where six members voted against the budget. (There is one vacancy, and one Cape Cod Democrat who is under legal investigation did not vote.)
The Senate then debated its version
during the week leading up to the Memorial Day holiday weekend. It approved, on a 38-2 roll call (two of the five GOP Senators voted “no”), its $61.4 billion spending package.
There are considerable spending and policy differences in the two documents, including the amount of one-time revenue redirection, how much money to provide to the MBTA as well as other transportation and education initiatives funded by the surtax, and whether to pause admissions reforms at vocational and technical schools.
A conference committee, led by Ways and Means chairmen Sen. Michael Rodrigues and Rep. Aaron Michlewitz, will have about five weeks to iron out the differences between the two documents before FY26 starts on July 1. The other committee members are Sens. Cindy Friedman (D-Arlington) and Patrick O’Connor (R-Weymouth), and Reps. Ann-Margaret Ferrante (D-Gloucester) and Todd Smola (R-Warren).
Massachusetts is unlikely to have a budget in place by July 1. House and Senate Democrats for years have stretched negotiations past the start of the fiscal year and, instead, used short-term holdover budgets to keep operations running. The last time a governor signed an annual state budget into law before the start of the fiscal year was in 2010.
The conference committee will have before it at least one matter of interest to new and used-car dealers: e-titles and e-signatures. During the House budget debate, we were able to successfully lobby the House to include in the bill three outside sections that would call for the Registrar of Motor Vehicles to establish a process for not only accepting electronic signatures on all vehicle transactional documents, including titles and all odometer statements but also creating an e-title process in lieu of the current paper title requirement. The Senate also included similar, but not exact, language, so some level of resolution will need to occur.
The House and Senate also had before it amendments to delay the Advanced Clean
Cars II rule until July 1, 2027. Although neither chamber accepted the language, the attention we were able to generate on the matter during budget deliberations went a long way toward the governor putting forth her administration’s enforcement discretion order for Model Years 2026 and 2027.
As we look to the start of FY26, we can expect the budget to be late. Regardless of the timing, we are optimistic that we will be one step closer to an electronic title program under the RMV.
Legislative Public Hearings Kick Off
The Legislature’s committees, almost 40 in number, have commenced in earnest the public hearing process to hear from interested parties on the over 6,000 bills that were filed in January.
• On April 14, the Joint Committee on Consumer Protection and Professional Licensure heard Senate 291 and House 474, which would include as part of the annual vehicle inspection process a requirement to check for open recalls. MSADA supports these bills.
• On May 13, the Joint Committee on Financial Services held a hearing on House 1293, which MSADA supports, regarding protecting consumer choice in the purchase of motor vehicle service contracts.
• On May 13, the Joint Committee on Transportation heard several motor vehicle-related matters:
• House 3603 and Senate 2360, regard ing eliminating the initial state inspection for a new vehicle, which MSADA supports.
• House 3676, House 3677, Senate 2371, and Senate 2374, which are bills MSADA supports to require the Registry of Motor Vehicles to establish requirements for electronic titles and electronic signatures on RMV and sales documents.
• House 3690, which MSADA opposes, that would cap the documentary preparation fee at $400.
the roundu P
• On May 14, the Joint Committee on Telecommunications, Utilities and Energy held a hearing on House 2386, House 3535, and House 3572, which would amend the state’s clean air law to create a process to review and potentially delay the implementation of the Advanced Clean Cars II and the Advanced Clean Trucks rules if manufacturer compliance could not be achieved. MSADA supports these bills.
• The Joint Committee on Advanced Information Technology, the Internet and Cybersecurity, on April 9, held a public hearing on several bills to establish the Massachusetts Consumer Data Privacy Act. MSADA opposes these bills and advocated for an amendment to exempt dealership operations as already being under the governance of the federal Gramm-Leach-Bliley Act. The committee put out a Senate redraft (Senate 2516) favorably, with a limited GLB exemption. The bill was then referred to the Senate Ways and Means Committee. The House bills remain in committee for now.
Complete the 2024 Economic Impact Survey
Please assist us again in creating our annual Economic Impact Report, which we use with legislators and opinion makers to demonstrate the real dollar and cents economic impact that dealers have on our Commonwealth and in their cities and towns. Please take a few minutes to complete the survey today for each of your dealerships. The survey is available on page 24 of this issue. Your submitted survey is strictly confidential. We will be collecting the surveys until June 30. Thank you for your assistance with this project.
MSADA Annual Meeting –Oct. 10, Encore Casino
Save the date – We have begun preparations for our 2025 MSADA Annual Meeting on October 10 at the Boston Encore Casino and Hotel in Everett. Be on the lookout for our registration and sponsorship materials.
Tariffs Update
The tariff landscape continues to change as increased tariffs on steel and aluminum go into effect, critical minerals from China continue to be restricted, and tariffs on imported automobiles and auto parts remain in effect.
On June 4, the Trump Administration increased tariffs on steel and aluminum from 25% to 50%. Goods subject to the 25% tariff on automobiles and auto parts are not directly subject to steel and aluminum tariffs. The increase, however, will impact the price of automobiles because suppliers will pay more for imported raw materials.
On May 28, the U.S. Court of International Trade unanimously ruled that the president cannot impose tariffs on foreign countries under the International Emergency Economic Powers Act of 1977 (IEEPA). The court struck down the tariffs, which include global “reciprocal” tariffs and “fentanyl” levies on Mexico, Canada, and China, because it determined the statute does not give the president unbounded authority to impose them. The next day, a federal appeals court paused the ruling pending initial arguments. This decision temporarily reinstates the tariffs.
Because goods that are subject to the 25% tariff on automobiles and auto parts are generally exempt from most IEEPA tariffs, the ruling does not change the tariff rate on most automobiles and auto parts.
If the IEEPA tariffs are struck down, it could significantly impact global U.S. trade negotiations because the tariffs are used as leverage in negotiations with other countries. Moreover, although the U.S. temporarily reduced tariffs on some Chinese goods, significant tensions continue. China has slowed down the flow of critical minerals and magnets to the U.S that are necessary to manufacture automobiles and other goods such as smart phones. If China’s restrictions on critical minerals and magnets remain, the U.S. could experience a significant stoppage in vehicle production. Automotive suppliers need the critical minerals and magnets from China to produce automatic transmissions, throt-
tle bodies, alternators, various motors, sensors, seat belts, speakers, lights, motors, power steering, and cameras.
In the near future, the U.S. Court of Appeals for the Federal Circuit will determine if the IEEPA tariffs can continue or not. The White House also has communicated that a call between the U.S. and China will “likely” occur this week as the U.S. seeks to increase the flow of critical minerals and magnets.
NADA has expressed its concerns about increased tariffs with the White House, Office of the U.S. Trade Representative, Department of Treasury, and other government agencies and Congress. In April, NADA joined a letter with several other industry groups to Trump Administration officials warning of the potential destabilizing effects of the 25 percent tariffs on automotive parts, and saying the president’s potential openness to reconsidering such tariffs would be “welcome relief.” NADA continues to communicate with government agencies regarding the impact of ongoing tariffs.
Upcoming Holiday Reminder –Juneteenth Day
Massachusetts will celebrate Juneteenth Independence Day on Thursday, June 19, as a partially restricted holiday, which, under state law, means the following:
• Dealership may be open – no permit required.
• Employees cannot be required to work.
• Employees cannot be punished or penalized for choosing not to work that day.
• Presently, as of January 1, 2023, under state law, there is no holiday premium pay requirement. Non-exempt employees, if working the day, need to be paid at least the state minimum wage of $15 per hour for any hours worked that day.
• Review your holiday policies under your Employee Handbook, including providing paid time off if closed for the holiday. Massachusetts created the state holiday in 2020. All 50 states and D.C. recognize Juneteenth Independence Day as a state holiday or a day of recognition.
EGISLATIVE S CORECARD
MAY 2025
BILL# SPONSOR SUBJECT
S201
H406
H398
S271 H342
H365
S202 H424
Sen Crighton Rep Hunt
Amendments to Ch. 93B, the auto dealer franchise law.
In Joint Committee on Consumer Protection; no hearing scheduled yet.
S291 H474
Sen O’Connor Rep Chan
Rep Finn Rep Howitt
Sen Crighton Rep Lewis
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.
Sen Velis
Rep Walsh Open safety recalls notifications.
S228 Sen Feeney Protects consumer choice in vehicle service contracts.
S797
H1260 H1285
H1293
H3406 S2185
H2386
H3535
Sen Moore
Rep McMurtry Rep Philips
Rep Puppolo
Creates process to increase the insurance reimbursed labor rate paid to auto body repairers.
Protects consumer choice in vehicle service contracts.
Rep Puppolo Sen Moore Creates process to delay ACT.
Rep Muradian
H3572 Creates process to delay ACC II and ACT.
S2360
Rep Muradian
Rep Soter
Sen Cronin
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.
SUPPORT In Joint Committee on Consumer Protection; no hearing scheduled yet.
In Joint Committee on Financial Services; no hearing scheduled yet.
Joint Committee on Financial Services held public hearing on 5/13/25.
SUPPORT In Joint Committee on State Administration; no hearing scheduled yet.
SUPPORT Joint Committee on Telecommunications, Utilities and Energy held public hearing on 5/14/25.
H3603 Eliminates initial state inspection for new vehicle. SUPPORT Joint Committee on Transportation held public hearing on 5/13/25.
Rep Arciero
H3690 Rep Howitt Limit doc prep fee to $400. OPPOSE Joint Committee on Transportation held public hearing on 5/13/25.
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.
COVER STORY ZEV MANDATES
A LIGHT AT THE END OF THE TUNNEL
Moving through the month of May, hope sprung eternal as Massachusetts and the other CARB states began to see some resolution to the anxieties caused by the looming zero-emission vehicle mandates beginning for MY 2026.
For well over a year Massachusetts car and truck dealers were facing down the barrel of a gun as vehicle manufacturers, dealers, consumers, legislators, regulators, and other affected parties came to the realization that, in theory, the California Air Resources Board’s rules sound nice on paper but the reality of the situation told a different story.
The Looming Crisis
For better or worse, Massachusetts, in the early 1990s, was one of the first state’s to fully commit itself to all things CARB –namely, the vehicle emissions policies and regulations promulgated by the California Air Resources Board. Under the Massachusetts Clean Air Act (MGL Chapter 111, Section 142K), the Commonwealth must adopt CARB’s motor vehicle emissions standards unless the state determines the California standards do not provide better pollution reductions than those imposed by federal laws and rules.
Under the U.S. Clean Air Act, states can either follow the emissions standards set by the Environmental Protection Agency or seek a waiver to establish emissions rules that are stricter than that which are set by the EPA. Many decades ago, California undertook the process and received a federal waiver. Over time, the EPA has granted CARB over 100 waiver requests for their various emissions rules. Thus far, 17 states have adopted all or part of CARB’s low-emission and zero-emission vehicle regulations, as allowed under Section 177 of the U.S. Clean Air Act, meaning over one-third of national
new light-duty vehicle sales presently meet CARB’s auto emissions standards.
In November 2022, CARB approved its Advanced Clean Cars II (ACC II) rule that required vehicle manufacturers to meet the delivery requirement of 100% new zero-emission vehicles to dealers by Model Year 2035. Beginning with a minimum requirement of 35% ZEVs and plug-in hybrid vehicles by MY 2026, the goal-line is increasingly adjusted each year by an additional eight percentage points (e.g., 51% by 2028; 68% by 2030; 82% by 2032, etc.) until a touchdown is scored of 100% in a decade from now.
In December 2022, Massachusetts regulators adopted the CARB ZEV ACC II rule, after the Legislature re-affirmed the state’s commitment to it in the 2022 Clean Energy Act that Gov.
Charlie Baker signed into law in August that year. That law also had a substantial carrot: The vehicle and consumer eligibility standards for the state’s EV rebate program – MOR-EV (Massachusetts Offers Rebates for Electric Vehicles) – was enshrined in law to be administered by the Massachusetts Department of Energy Resources, with a minimum rebate of $3,500.
Along with Massachusetts, ten other states also follow ACC II: Colorado, Delaware, Maryland, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, and Washington. None of the twelve states is on track to see the legacy vehicle manufacturers meet the ZEV mandates due to low consumer demand based on issues tied to vehicle price affordability or lack of available charging infrastructure.
As detailed in communications with the Massachusetts Legislature and the Healey-Driscoll Administration, the Massachusetts State Automobile Dealers Association has pointed out that, in order to meet the mandated thresholds, automakers must sell to dealers either more ZEVs or fewer gas cars, meaning internal combustion engine vehicles will be limited in the states following California’s rule.
In addition to the ZEV mandates for cars under ACC II, the vehicle manufacturers are facing in the so-called CARB states similar mandates for heavy-duty trucks under the Advanced Clean Trucks (ACT) rule and the Omnibus Low NOx (HDO) rule, with disastrous results thus far. (Massachusetts and nine states – Colorado, Maryland, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, and Washington – have adopted California’s ACT regulation.)
ACT requires truck manufacturers to sell an increasing percent-
Due to no manufacturer meeting the new emission standard, diesel trucks are capped at below market purchase rates, further tightening diesel truck availability
age of zero-emission trucks each year up to a 100% mandate by 2036 while HDO’s emission standards have increased the cost of a new diesel truck by upwards of $10,000. Due to no manufacturer meeting the new emission standard, diesel trucks are capped at below market purchase rates, further tightening diesel truck availability. In combination with a lack of truck charging infrastructure and the two- to three-times higher costs of EV trucks versus diesel, the two rules have killed heavy-duty diesel truck sales in California and the other CARB states.
Massachusetts Actions
Since the truck rules began a model-year earlier than the car-related ACC II, Massachusetts regulators and legislators were put on notice in 2025 of the impending issues resulting from ACT and HDO implementation. As a result of lobbying from a coalition consisting of the Trucking Association of Massachusetts, MSADA, and scores of fleet owners and other affected end-users, the Massachusetts Department of Environmental Protection (DEP) in the Fall of 2024 issued an emergency regulation to push off the implementation of the HDO rule for one-year until January 1, 2026.
Then, on April 14, the DEP announced enforcement discretion for manufacturers that are unable to meet minimum electric truck sales required under the ACT program. Manufacturers that cannot meet those sales requirements will receive relief for Model Years 2025 and 2026, provided they make internal combustion engine (ICE) trucks available to distributors seeking them. This approach gives manufacturers more flexibility and eases the challenges dealers are facing, while keeping the state on track to achieve
ZEV MANDATES
critically important emissions reductions. Through these two actions, Massachusetts is the only state amongst the ACT states with a MY25 start date to delay the rule.
Throughout the year the MSADA continued its lobbying of the Healey-Driscoll Administration and legislators to obtain relief from ACC II. Proposed amendments during the House and Senate budget debates did not pass but did generate considerable attention and bipartisan support as the compliance problems had an open airing amongst decision-makers. Additionally, on May 14, the Joint Committee on Telecommunications, Utilities and Energy held a public hearing on House 3535, filed by Rep David Muradian (R-Grafton), to create a process in the state’s clean air law to review compliance progress on ACC II and implement a delay should various factors, such as charging infrastructure availability, vehicle inventory, etc., point toward the need for a pause.
Finally, the Healey-Driscoll Administration provided some welcome relief. The Department of Environmental Protection issued, on May 23, an enforcement discretion for manufacturers that are unable to meet minimum zero-emission vehicle (ZEV) and plug-in hybrid electric vehicle (PHEV) inventory mandates required under the Advanced Clean Cars II (ACC II) rule for Model Year 2026 and 2027.
Federal Relief – House Takes First Steps
Manufacturers that cannot meet those mandated requirements will receive relief for MY 2026 and 2027, provided they make internal combustion engine (ICE) passenger cars and light-duty trucks available to franchised dealerships seeking those vehicles. This approach gives manufacturers more flexibility and eases the challenges dealers are facing, while keeping the state on track to achieve critically important emissions reductions.
However, in order to enjoy enforcement discretion, in addition to supplying ICE vehicles to dealers, each manufacturer also must provide on a quarterly basis starting July 1, 2025, through July 1, 2027, reports detailing its efforts to: promote and market ZEVs; provide ZEVs for ride and drive events; increase deployment of charging infrastructure including investments in fast charging, level 2 charging, and home charging options; educate and train dealerships including sales and service staff on sales and maintenance of ZEVs; and increase ZEVs in fleets and ridesharing and ride hailing services. Manufacturers that do not meet these conditions will continue to be subject to all regulatory requirements under the ACC II rule for Model Year 2026 and 2027.
The full DEP announcements on ACC II and ACT follow this article.
Simultaneous with Gov. Healey’s actions in Massachusetts, politicians and regulators in Massachusetts and the other CARB states held a steady eye on what could transpire in Congress, especially as the Trump Administration and the Republican-led Congress have expressed their desire to eliminate the EPA waivers for the CARB rules under the Congressional Review Act (CRA).
A two-year pause from Gov. Healey is helpful, but Congress and the Trump Administration have the power to eliminate the headache for good. Once a rule is revoked, it can come back in a similar likeness.
After initial filings from the Environmental Protection Agency, Congressional efforts to revoke the EPA’s waivers of the three CARB ZEV-related and truck emissions rules began to gain steam.
In late March, EPA administrator Lee Zeldin sent the appropriate communications to Congress to commence the CRA process. On April 2, the following CRA joint resolutions were introduced in the House:
• H.J. Res. 88 to revoke CARB’s ZEV Mandate (ACC II rule), filed by Rep. John Joyce (R-Pennsylvania);
• H.J. Res. 87 to revoke CARB’s Heavy-Duty ZEV Mandate and Diesel Requirements (ACT rule), introduced by Rep. John
James (R-Michigan); and • H.J. Res. 89 to revoke CARB’s Heavy-Duty Omnibus Low NOx rule, introduced by Rep. Jay Obernolte (R-California).
Each resolution had the same original co-leads: Reps. Kevin Kiley (R-California), Doug LaMalfa (R-California), Jay Obernolte (R-California), Russ Fulcher (R-Idaho), John James (R-Michigan), Lisa McClain (R-Michigan), and John Joyce (R-Pennsylvania).
On May 1, the U.S. House of Representatives approved H.J. Res. 88 to revoke the ACC II waiver on a vote of 246-164, with 35 Democrats voting in favor – a strong bipartisan statement in a sharply divided House. This followed votes on April 30 approving H.J. Res. 87 (ACT waiver revocation) by a vote of 231-191 (including 13 Democrat “yes” votes) and H.J. Res. 89 (HDO waiver revocation) by a vote of 225-196 (including 10 Democrat “yes” votes).
Senate Pumps the Gas
The process saw some bumps in the U.S. Senate. Revocation efforts stalled amid controversy.
On April 15, the Senate Parliamentarian, Elizabeth MacDonough, told Senators, in a non-binding opinion, that she did not believe Congress can revoke the EPA/CARB waivers through CRAs. The parliamentarian’s opinion was said to be influenced by a recent opinion by the Government Accountability Office (GAO), which questioned whether the EPA waivers meet the qualifications for a CRA. There was considerable disagreement with the GAO’s assessment, and the GAO’s opinion is also not legally binding. Two Republican committee chairs wrote a letter to the GAO questioning their opinion that Congress cannot use the CRA to block California’s waivers. This presented a significant hurdle in a legislative body steeped in and committed to following rules and parliamentarian precedents. In the end, the parliamentarian’s opinion was not insurmountable.
Sen. Shelley Moore Capito (R-West Virginia), chair of the Senate Environment and Public Works Committee, along with Sens. Deb Fischer (R-Nebraska) and Markwayne Mullin (R-Oklahoma), introduced a trio of legislation, matching the three House bills, to revoke CARB’s ZEV mandates and Low NOx rules: S.J. Res. 45 to revoke the ACC II waiver, S.J. Res. 46 to revoke the ACT waiver, and S.J. Res. 47 to revoke the HDO/NOx waiver.
Nevertheless, the Democrat’s opposition in the Senate rested heavily on respecting the parliamentarian’s opinion. Their efforts were to be for naught.
As a prelude to the Senate’s eventual roll calls, Sen. Majority Leader John Thune (R-South Dakota) made the following comments from the Senate floor on May 20:
“Mr. President, this week we’re going to be moving to take up Congressional Review Act resolutions to overturn Clean Air Act preemption waivers the Environmental Protection Agency granted to California that allow California to dictate emissions standards for the whole country – effectively imposing a nationwide electric vehicle mandate.
“Now, Clean Air Act waivers are nothing new, Mr. President.
“The Clean Air Act allowed for waivers to address specific pollution problems, and over the decades a number of them have been granted.
“But the waivers the Biden EPA handed to California on the Biden administration’s way out the door go far beyond the scope Congress contemplated in the Clean Air Act.
“The waivers in question allow California to implement a stringent electric vehicle mandate, which – given California’s size and the fact that a number of other states have signed on to California’s mandate – would end up not just affecting the state of California, but the whole country.
“Under California’s electric vehicle mandate, automakers around the country would be forced to close down a substantial part of their traditional vehicle production, with serious consequences.
“Diminished economic output.
“Job losses.
“Declining tax revenues.
“And that, Mr. President, is just the start.
Our electric grid is simply not in a position to absorb a huge surge in electric vehicles.
“Consumers around the country would face fewer choices, higher prices, and reduced automobile availability.
“And our already shaky electric grid would quickly face huge new burdens from the surge in new electric vehicles – if, of course, automakers were able to ramp up production as fast as California wants them to, and charging stations, which typically take several years to approve, could be built in time.
“Mr. President, our nation is already facing serious problems on the energy supply front.
“We are, to quote a Washington Post headline from last March, ‘running out of power,’ as a surge in demand and the premature retirement of fossil fuel-fired power plants push us to the brink.
“Our electric grid is simply not in a position to absorb a huge surge in electric vehicles.
ZEV MANDATES
“Unfortunately, that didn’t seem to register with President Biden, who implemented a nationwide electric vehicle mandate that the Trump EPA is currently working to undo.
“But while the Biden EPA’s EV mandate was bad, Mr. President, California’s is much worse.
“And if we don’t act, the consequences to our economy, to consumers, and to our electricity supply could be devastating.
“The House, Mr. President, has already passed a CRA resolution to repeal California’s mandate – and the situation is so grave that not just Republicans but 35 Democrats supported this repeal.
“But here in the Senate, Mr. President, Democrats are attempting to derail a repeal by throwing a tantrum over a supposed procedural problem.
“The California waivers are not rules, Democrats claim, and thus the Congressional Review Act cannot be used to repeal them.
“Mr. President, let’s be very clear.
“The EPA has submitted the waivers to Congress as rules –which is all that Congress has ever needed to decide to consider something under the Congressional Review Act.
“The House, as I said, passed a Congressional Review Act resolution of disapproval – a resolution that garnered 35 Democrat votes in the House and was passed without objection from the House parliamentarian.
“And there can be no question that these waivers are rules in
substance, given their widespread effects.
“But it is true that we are facing something of a novel situation.
“Because for the first time ever, the Government Accountability Office has decided to insert itself into the process and affirmatively declare that an agency rule submitted to Congress as a rule is not a rule.
“It’s an extraordinary deviation from precedent for an agency that should be defending Congress’ power instead of constraining it.
“And frankly, Mr. President, I think we need to act to ensure that this intrusion into the Congressional Review Act process doesn’t become a habit, and that the Senate doesn’t end up transferring its decision-making power on CRA resolutions to the Government Accountability Office.
“That’s why this week I intend to bring the question of GAO’s unprecedented interference to the floor.
“But in the meantime, I want to make one thing very clear.
“This debate, Mr. President, is not about destroying Senate procedure, or any other hysterical claim that Democrats are making.
“And I have to say that my colleagues’ newfound interest in defending Senate procedure is touching – if a touch surprising.
“After all, it’s only last year that Democrats were planning to destroy one of the bedrocks of the Senate, the legislative filibuster.
“And of course Democrats’ concern about overruling the par-
liamentarian is a bit unexpected, given Democrats’ documented history of attempting to do exactly that.
“But I am glad to see Democrats demonstrating an interest in safeguarding the Senate.
“However, Mr. President, the fact of the matter is that their purported concerns here are entirely misplaced.
“We are not talking about doing anything to erode the institutional character of the Senate; in fact, we are talking about preserving the Senate’s prerogatives.
“And I would like to see senators from both parties vote to uphold the Senate’s rights under the Congressional Review Act –even if Democrats support the California Green New Deal rule in question.
“Mr. President, the California waivers rules are an improper expansion of a limited Clean Air Act authority and would endanger consumers, our economy, and our nation’s energy supply.
“And I look forward to overturning these rules in the very near future.”
Two days later, the final votes seemed anti-climactic. On May 22, the U.S. Senate approved the revocation of the EPA waivers of the ACC II rule (by a 51-44 vote), the ACT rule (51-45), and the HDO rule (49-46).
Congress, as of this writing, had yet to forward the approved resolutions to the president. Once that occurs, President Trump will have ten days to act. He has indicated previously he will sign them.
While many of the CARB states took a waitand-see approach and saw politicians and regulators do nothing, states like Massachusetts, Maryland, and Vermont actually saw their governors exert some leadership on the issue and do the right thing to implement compliance pauses, in the face of strong opposition from the environmental community.
“With these votes, Senate Republicans are bending the knee to President Trump once again,” said Attorney General Rob Bonta. “The weaponization of the Congressional Review Act to attack California’s waivers is just another part of the continuous, partisan campaign against California’s efforts to protect the public and the planet from harmful pollution. As we have said before, this reckless misuse of the Congressional Review Act is unlawful, and California will not stand idly by. We need to hold the line on strong emissions standards and keep the waivers in place, and we will sue to defend California’s waivers.”
“This Senate vote is illegal,” said Governor Gavin Newsom. “Republicans went around their own parliamentarian to defy decades of precedent. We won’t stand by as Trump Republicans make America smoggy again — undoing work that goes back to the days of Richard Nixon and Ronald Reagan — all while ceding
our economic future to China. We’re going to fight this unconstitutional attack on California in court.”
Nevertheless, the Healey Administration’s enforcement discretions on ACC II and ACT will prove beneficial should the waiver revocations get tied up in the courts. Although the Congressional Review Act bars court challenges against Congressional revocations, litigation seems likely as California Attorney General Rob Bonta and California Governor Gavin Newsom, both Democrats, announced after the Senate roll calls that the state will file a lawsuit.
Time will tell if the Congressional efforts to revoke the CARB waivers succeed. But, every day moving forward, Massachusetts does seem to be getting closer to an escape from the onerous California mandates as decisionmakers in the administration and the Legislature understand adjustments need to be made for Massachusetts to have rational vehicle emissions rules. For Massachusetts dealerships and their customers, there appears to be – for now – a light at the end of the mandate tunnel.
ECONOMIC IMPACT STUDY SURVEY
MASSACHUSETTS
STATE AUTOMOBILE DEALERS ASSOCIATION
ECONOMIC IMPACT STUDY SURVEY
This study is a critical legislative and public relations tool for Massachusetts franchised new car dealers. Please take the time to fill out this survey. You may fax it to Auto Outlook (610-640-2907), mail to Auto Outlook (PO Box 390, Exton, PA, 19341), or email to (autooutlook@icloud.com). If you operate more than one dealership, please complete one form for each location.
1.Personnel - 2024
Number of full time employees
Number of part time employees
Change in number of full time employees from 2023 (+ or -)
Total payroll
Total employee benefits (excluding payroll taxes and social security)
Do all of your employees and their dependents have access to health insurance through your dealership? Unemployment insurance premiums paid
compensation
2.Financial - 2024
RESULTS - 2024
4.Vehicle Sales - 2024
Total number of new and used vehicles sold
5.Taxes and Fees - 2024
TAXES COLLECTED AND REMITTED - 2024 Federal employee taxes (include employer and employee Social Security and Medicare, and employee taxes withheld)
employee taxes (include state disability and income taxes withheld)
sales and use taxes collected
6.Miscellaneous Questions
Question #1
In what county is the dealership located?
Question #2
How many franchises are housed at the dealership?
3.Electric Vehicles
Estimated annual battery electric vehicle sales as a percent of overall new vehicle sales:
Estimated number EV chargers that will be installed at the dealership by the end of 2025:
RELATED TO SALE OF EVs - 2025
Question #3 What were your total personal and dealership contributions to charitable and civic organizations in 2024?
Question #4
How much was spent on advertising during 2024?
your
Question #5
Estimate the total amount spent in 2024 for products and services from other Massachusetts businesses (e.g., utilities, professional fees, office equipment, supplies, etc.)
NEWS from Around the h orn
Jack rome Memorial 5k raises $45K for TJo Animals
On May 4, the Jack Rome Memorial 5k Road Race raised $45,000 in donations for the Foundation for TJO Animals, which helps provide medical care, shelter, and second chances to animals in need across the community.
Jack Rome, a gentle and loyal Vizsla, became a familiar face in local TV commercials and dealership ads, often seen alongside Gary and his Vizsla “sister” Daisy.
“Jack was more than a pet—he was family and a cherished part of our dealership and community,” said Gary Rome, President of Gary Rome Auto Group. “It’s incredibly meaningful that his memory continues to bring people together and help animals get the care and second chances they deserve.”
Key sponsors of the event included Gary Rome Hyundai and Western Mass News as presenting sponsors, the Richard & Barbara Whitcomb Foundation as the “Best in Show” sponsor, and the Integrity Veterinary Center as the Rainbow Bridge Memorial Wall Sponsor.
WILBRAHAM
Dealership Recognitions
Honda Financial Services 2024 Council of Excellence: Honoring 2024’s top performers’ outstanding achievements in setting the standard for excellence in customer service and financing. Their unwavering commitment to quality and performance continues to drive success and inspire others.
18-Year Winner: Hyannis Honda
9-Year Winner: Curry Honda, Chicopee
4-Year Winner: Ocean Honda of Brockton
Toyota 2024 Customer First Advisory Board: Boston Region –Murray Patkin and Adam Skolnick, Toyota of Watertown
Toyota 2024 Board of Governors: Boston Region – Daryl Kenningham, Ira Toyota, Danvers
Toyota’s 2024 President’s Award:
Toyota of Watertown
Toyota of Wellesley
Acton Toyota of Littleton
Copeland Toyota, Brockton
Westboro Toyota
Nucar Toyota of Norwood
Parkway Toyota of Boston
Falmouth Toyota, Bourne
Bristol Toyota, Swansea
Nucar Toyota of North Attleboro
Haddad Toyota, Pittsfield
Lexus 2024 Elite Winners:
Balise Lexus, West Springfield
Herb Chambers Lexus, Sharon
Herb Chambers Lexus of Hingham
Ira Lexus, Danvers
Lexus of Northborough
Lexus of Watertown
HOLYOKE
Marcotte Ford Honors
Local Teachers during Appreciation Week
Earlier this month, during Teacher Appreciation Week, Marcotte Ford’s Mobile Service Team provided oil changes to teachers at Smith Vocational and Chicopee Comprehensive High School for a small fee that was donated back to the schools’ automotive programs. Dealer Mike Marcotte and his team also delivered food to a Holyoke elementary school with their own LugNutz Café breakfast to surprise the school’s teachers and thank them for all they do during the year.
The Best Ways to Invest Extra Funds
By Dalton Myers
CPA, Albin Randall & Bennett
After the rapid growth of 2021 and 2022, auto dealerships are now operating in a more balanced market. While demand has stabilized, financial health remains strong.
According to ARB’s Auto Dealer Business Intelligence (ADBI) database, the average New England dealership reported a current ratio of 1.70 on their December 2024 balance sheet, indicating a healthy level of liquidity. This presents an opportunity for dealers to put excess cash to work in ways that enhance profitability and strengthen operations. Proper cash management is critical to maintaining stability and preparing for future market shifts. Dealerships that proactively manage their liquidity can take advantage of opportunities that may arise, whether through cost savings, investment growth, or operational improvements. Below are several strategic investment options to consider.
Floor Plan Paydown & Offset Accounts
Reducing floor plan financing is a straightforward way to improve financial stability and reduce interest costs. Since this type of debt represents a significant expense for dealerships, paying it down or depositing excess cash in an offset account can offer both immediate and longterm benefits.
• Fixed Return: Paying down the floor plan debt offers a guaranteed return equivalent to the current interest rate on the loan.
• Improved Financial Ratios: Lowering debt enhances the dealership’s balance sheet, potentially leading to better financing terms in the future.
• Sweep Arrangements: Implementing an overnight sweep arrangement allows excess cash to automatically reduce floor plan balances, optimizing interest savings without manual intervention. By proactively managing floor plan
debt, dealerships can lower their financing costs and improve their overall financial position. Additionally, reducing reliance on borrowed funds can increase financial flexibility during economic downturns.
Investment in Treasury Bills
For those looking to earn a return on excess cash without taking on unnecessary risk, Treasury bills provide a safe and flexible investment option. These government-backed securities allow dealers to preserve capital while generating predictable income.
• State Tax Exemption: Interest earned on Treasury bills is exempt from state income tax, enhancing the effective yield.
• Short-Term Commitment: With maturities ranging from a few days to a year, Treasury bills offer liquidity to meet unforeseen expenses.
• Laddering Strategy: By staggering the maturity dates of multiple Treasury bills, dealerships can maintain consistent cash flow while capitalizing on prevailing interest rates.
With their low risk and built-in flexibility, Treasury bills can be a valuable tool for dealerships seeking to maximize cash efficiency while maintaining liquidity. A well-structured Treasury investment strategy can also serve as a safeguard against potential market volatility.
Employee Bonuses & Incentives
Using excess cash to invest in employees can lead to long-term benefits in retention, morale, and overall dealership performance. Well-structured bonus and incentive programs can help dealerships retain top talent in an increasingly competitive job market.
• Enhanced Retention: Competitive compensation packages improve employee retention, particularly among skilled technicians who are vital to operations.
• Morale and Productivity: Recognizing employee contributions boosts morale, which can translate into increased pro-
ductivity and customer satisfaction. By rewarding employees for their contributions, dealerships can strengthen their workforce and improve service quality, leading to higher customer satisfaction and repeat business. Investing in human capital not only enhances the dealership’s work environment but also contributes to longterm operational success.
Business Expansion & Enhancement
Reinvesting in business growth can provide dealerships with additional revenue streams and a stronger market position. Expanding service capacity, adding ancillary businesses, or acquiring additional locations can drive long-term profitability.
• Service Capacity: Adding service bays addresses increased demand for maintenance and repairs, generating additional revenue streams.
• Ancillary Services: Integrating services such as car washes or collision centers diversifies income sources and enhances customer convenience.
• Acquisitions: Purchasing additional dealerships expands market presence and can lead to economies of scale.
Strategic reinvestment in business operations can help dealerships stay competitive and position themselves for sustained success in the evolving automotive market. Growth-oriented investments can also build brand loyalty and create new revenue opportunities.
The Road Ahead
While the post-pandemic boom has tapered off, dealerships remain in a strong financial position. Rather than letting excess cash sit idle, dealers can use it to reduce debt, invest in secure financial instruments, support employees, and expand business operations. Each of these strategies not only puts cash to work but also strengthens the dealership’s long-term outlook.
A well-planned approach to cash management ensures that dealerships remain agile, profitable, and prepared for whatever the future holds.
House 2025 Tax Reform Impacts on Auto Dealerships
By Joshua Keith MBA, Withum
On May 22, the U.S. House of Representatives adopted the Big Beautiful Bill by a vote of 215-214. The bill most likely will have additional changes in the Senate but does provide an initial outline of federal tax reform. If passed through the Senate and signed into law, there are some potential notable changes that would affect the dealership industry tax landscape.
Section 168(k) “Bonus” Depreciation
Following the Tax Cuts and Jobs Act’s passage in 2017, one of the most notable changes was to allow for 100% Section 168(k) bonus depreciation, which enabled businesses to depreciate 100% of the cost basis for certain asset types (machinery and equipment, furniture and fixtures, qualified improvement property, and vehicles). However, starting in taxable year 2023, bonus depreciation was required to decrease by 20%, ultimately only allowing 40% bonus depreciation for the 2025 taxable year.
This year’s House bill would reinstate 100% bonus depreciation for the 2025 taxable year for assets placed in service after January 19, 2025. The bill would allow for 100% bonus depreciation through calendar year 2029. For auto dealerships, this is a welcome change from a tax perspective. It would allow for increased depreciation expense for new assets placed in service after January 19, 2025, therefore decreasing the taxable net income of the entity from a federal tax perspective.
It must be noted that depreciation laws vary by state. For example, Massachusetts, Rhode Island, New Jersey, New York, Cali-
fornia, and New Hampshire do not conform with Section 168(k) “Bonus” Depreciation. Therefore, the depreciation expense related with this section must be “added back” on the respective state returns.
Section 179 Expensing
The House bill would provide for a significant increase in Section 179 expensing to $2,500,000 (currently $1,250,000 in the 2025 taxable year). In addition, the $2,500,000 allowed would not be reduced unless the total Section 179 property placed in service for the taxable year exceeds $4,000,000. The Section 179 provision would allow taxpayers to immediately expense assets placed in service for certain asset types (including machinery and equipment, furniture and fixtures, and vehicles). However, the taxpayer cannot create or increase a tax loss utilizing Section 179 expense.
Utilizing Section 179 expense is often preferred over bonus depreciation, if possible, as many states adhere to Section 179 provisions, allowing the immediate deduction to occur on both the federal and state income tax returns. However, some states, including California, New Jersey, and Hawaii, have certain provisions that modify or do not follow the federal Section 179 expense rules.
For dealerships, the proposed changes are also welcomed, especially as dealerships expand their operations, open new stores, and renovate existing stores; the increased maximum threshold would allow dealers to immediately expense 100% of the cost basis of the asset placed in service, subject to the Section 179 rules.
Updates to Section 163(j) and Adjusted Taxable Income (ATI)
Under the present law, businesses are generally subject to the interest expense limitation rules for the 2025 taxable year if their three-year average gross receipts exceed $31 million (subject to aggregation
rules). When calculating the allowable interest deduction, businesses are limited to the sum of the business interest income during the taxable year, 30 percent of the Adjusted Taxable Income (“ATI”) of the taxpayer, and the floor plan financing interest. Under current rules, ATI is computed on an “EBIT” model (Earnings Before Interest and Taxes) and does not allow addbacks for depreciation, amortization, or depletion.
Under the proposed changes, for taxable years beginning after December 31, 2024, and before January 1, 2030, ATI would be calculated with the inclusion of depreciation, amortization, and depletion (EBITDA). The larger ATI based on EBITDA would allow auto dealerships to be less likely to have business interest expense exceed the 30% ATI limitation, and, therefore, would be allowed to take bonus depreciation. This is a favorable change for dealerships. It could provide more interest expense and/or depreciation and subsequently lower taxable income.
The House bill also would modify the definition of “motor vehicle” for purposes of floor plan financing interest and floor plan financing indebtedness. The new definition would apply to “any trailer or camper which is designed to provide temporary living quarters for recreational, camping, or seasonal use and is designed to be towed by, or affixed to, a motor vehicle”.
Updates to Section 199A (Qualified Business Income)
The House bill would make the Qualified Business Income (QBI) deduction permanent for various types of income, including REIT dividends, qualified Publicly Traded Partnership (PTP) income, and income attributable to the domestic production activities of specified agricultural or horticultural cooperatives, and it would increase the QBI deduction from 20% to 23%. Under the current law, the QBI deduction is due to expire as of December 31, 2024.
Termination of Clean Energy Credits
The House bill would terminate many of the clean energy credits established in the Inflation Reduction Act of 2022, including the Clean Vehicle Credit, Alternative Fuel Vehicle Refueling Property Credit, and Commercial Vehicle Credit.
For purposes of the customer clean vehicle credit, no credit would be allowed after December 31, 2026, and the only credit that will be allowed in the 2026 calendar year for a vehicle that must be manufactured by an entity that has not sold 200,000 or more covered vehicles between December 31, 2009, and December 31, 2025.
Anticipating that the qualified vehicles will be severely limited in 2026, automotive dealerships should expect the vast amount of electric vehicle credits will no longer be available as of December 31, 2025. This could help with the administrative burden auto dealerships currently face regarding the proper reporting of the EV credit to their customers, as well as the
process of transferring the EV credit from the individual customer to the dealership. Further, qualified commercial vehicles, including electric vehicles, placed in service by the dealership (i.e., service vehicles) would no longer be allowed a federal income tax credit for vehicles placed in service after December 31, 2025. However, if a binding written contract for the commercial vehicle was entered into prior to May 12, 2025, and placed in service prior to January 1, 2033, a commercial vehicle credit would still be allowed under the House bill.
Finally, the alternative fuel vehicle refueling property credit is no longer available for charging stations placed in service after December 31, 2025.
Other Key Takeaways
The House legislation includes the following additional items that would impact your dealership operations:
• Full deductibility of domestic Section 174 research and development expenditures;
• Permanent estate and gift tax exemption to an inflation-indexed $15 million;
• No tax on car loan interest;
• Updates Section 280F provisions;
• Updates individual income tax rates;
• No tax on tips;
• No tax on overtime compensation; and
• State and Local Tax (SALT) Cap of $40,000, increased from the current $10,000, with a phaseout starting at $500,000 personal income level.
The tax legislation is now before the U.S. Senate. Congressional leaders have expressed a goal of placing a final bill before President Trump by July 4. Thus, the tax reform provisions outlined in this article are not final.
Always consult your tax advisor regarding the potential impact of these provisions on your business operations. At Withum, we have many experts within our dealership industry practice who can advise you to ensure tax impact optimization once the new law is enacted.
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Tariffs Raise Important Questions About Vehicle Pricing
By Attorneys Tom Vangel, Jamie Radke, and Lindsey McComber, Harris Beach Murtha Cullina PLLC
On March 26, President Trump announced that the automotive industry will be subject to a twenty-five percent tariff on imported automobiles and will face additional tariffs on imported auto parts beginning in May. Although it remains unclear if the President will pause or temporarily exempt the automotive industry from these tariffs, the issue is likely to have a major impact on Massachusetts dealers and the automotive industry as a whole.
Tariffs are expected to cause delays in shipments which could have negative effects on inventories; they will also likely cause an increase in costs for vehicle repairs as automotive parts become more expensive. The effects of these tariffs may be profound and will require dealers to closely monitor changes and to understand their rights and responsibilities under their agreements with their manufacturers.
For their part, automakers are trying to understand the effects of President Trump’s tariff policies and have responded in different ways. Ford recently announced that it would raise prices on newly-built vehicles next month if the President does not ease tariffs, but that price increases would not affect existing inventories. Volkswagen announced that it will hold prices steady through the end of May but would add an import fee thereafter. Hyundai also announced in early April that it will not raise prices on its current lineup of new cars for at least two months. Similarly, Nissan announced that it will not raise prices to account for tariffs until at least June 2.
Given the uncertainty the tariff issue has created, dealers may be concerned that manufacturers will increase the prices on vehicles already purchased before the dealer has taken delivery. Wholesale agreements typically outline the terms of the manufacturer’s sale of new vehicles
to the dealer, including the pricing, quantity, and the terms of delivery. If they do not expressly list the price of the vehicles sold, they typically list the quantities of the vehicles and state that the orders are subject to the terms of the dealers’ sales and service agreements.
Many sales and service agreements allow the manufacturer to revise prices and terms upon notice given to the dealer. Manufacturers may attempt to use this language to charge a higher price to account for tariffs that were not in place at the time of the order.
The Uniform Commercial Code, which has been adopted in Massachusetts and
Given the uncertainty the tariff issue has created, dealers may be concerned that manufacturers will increase the prices on vehicles already purchased before the dealer has taken delivery.
most other states, is a set of laws governing the sale of goods, including automobiles. The UCC supplies the law surrounding the sale of goods in the absence of an agreement between the parties on a particular issue. If the parties’ agreement contains a fixed price for purchased vehicles, the seller cannot typically raise the price simply because its costs have increased.
While a price increase caused by tariffs will not generally allow for the seller to back out of the fixed price contract, auto manufacturers may argue that tariffs are an unforeseeable contingency that made their performance under the contract impracticable and therefore excuses their performance under UCC § 2-615. However, most courts have held that a change in the market price of a good from the price
that existed at the time the parties entered into their sales contract does not generally render performance impracticable. In fact, courts typically view cost increases as a foreseeable risk. This exception to performance under UCC § 2-615 is difficult to prove and would require the manufacturer to show that the increased costs caused by the tariffs were truly unexpected and would make performance of the contract extraordinarily difficult.
Some sales contracts include force majeure clauses that can allow for price adjustments under certain circumstances such as natural disasters or other extreme unexpected events. Although manufacturers may try to use these clauses to increase prices to account for tariffs, such an argument is unlikely to be successful, as increased costs are generally considered a business risk that is not covered by force majeure clauses unless tariffs are explicitly mentioned. In situations where the wholesale agreement does not explicitly state the price of the vehicles purchased, a court will establish a “reasonable price at the time for delivery.” In such cases, the dealers may ultimately bear all or a part of the cost of a tariff due to a change in the market between the time of contracting to the time of delivery.
Although Massachusetts dealers may face pressure to bear the costs of the tariffs for vehicles they have already purchased, in the case of fixed price contracts, they are in a strong position to argue that the price must be honored and that the legal exceptions available to manufacturers are unlikely to apply in the case of tariffs. 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.
Avoiding Legal Exposure When Terminating Employees for Performance
By Attorneys Megan Carannante and James F. Martin, Pullman & Comley LLC
Historically, dealerships are often family businesses or trace their roots to a family business. But, as these initial team dealerships grow, sometimes the informal processes for managing employees — and the reluctance to document performance issues — remain in place.
It is important that dealers commit to raise and document performance deficiencies within the guidelines of both Massachusetts and Federal employment laws and to follow certain best practices in order to avoid lawsuits or limit exposure if a claim is raised.
Properly Raising, Documenting Performance Issues
When an employee relationship goes awry, dealerships tend to make a few common mistakes. The most difficult mistakes to overcome are terminating an employee without sufficient thought and documentation supporting the reason for termination or making a statement that the employee perceives as unfair.
Providing employees with reviews and prompt and consistent feedback can avoid future problems. In addition, keeping a complete record of any and all performance issues is essential. When these processes are not in place, dealers risk being accused of discrimination, unfair treatment and/or will be challenged defending against such claims.
The most common problem is incomplete records. Dealers often need to demonstrate recurrence of an issue or a track record of misconduct but lack the documentation to support it or the fact that they have previously raised the issue with the employee.
Documentation of employee performance provides objective evidence that an employee had or should have had knowledge of the dealership’s expectations; was advised that their conduct or performance was unacceptable; and was provided the opportunity to correct deficiencies and was advised that
failure to do so would result in termination. This is the most effective way to make sure an employee feels they are being treated fairly, even if they disagree with the employer’s viewpoint on their performance or termination decision.
If you are creating or using a form to document employee warnings at your dealership, be sure it allows for specificity while also being broad enough to capture any situation that may arise. The form should include dates and times and list all issues and persons involved, and it should encourage managers to describe in detail the conduct involved.
If there are several issues that need to be addressed, the write-up should include all issues, not just some or the more serious ones. If previous warnings have been verbal, these verbal discussions should be documented in the write-up as well. Instead of just outlining deficiencies, make sure to also include expectations going forward and warn the employee in clear language that failure to meet those expectations could result in further discipline up to and including termination.
Proper planning and direct and clear messaging in meetings and emails discussing performance issues are also extremely important. Many employers shy away from difficult conversations and avoid addressing issues with employees promptly and prior to taking the step of termination. This can lead to difficult-to-dispute claims from employees who say they had no idea there were any issues and lead employees to believe they were treated unfairly and terminated for an improper or illegal reason.
When outlining specific expectations for the employee, it is usually best to avoid time limitations for improvement in performance. It is also important to maintain flexibility and discretion and avoid promises and words that create false expectations. Be thoughtful and direct with your word choice. Personal commentary or irrelevant informa-
tion raised in performance meetings or documents can create unintended issues down the road.
Termination Tips
When the employer has decided to end the employment relationship, the best practice is to provide the employee with a formal termination letter outlining the reason for the termination. Such letters will provide invaluable support in defense of a claim if one is pursued. Even if it feels like everyone has a clear understanding of what happened, without real-time documentation, memories fade and personnel changes.
In the termination letter, identify in objective terms why the employment relationship is ending. Be specific about what, where and when the issues took place. Identify efforts undertaken by the dealership to articulate expectations and support the employee in meeting them and the employee’s failure to meet them.
Prepare thoroughly for all termination meetings. Think through the language you will use and how you will respond to certain issues should they arise. Present the letter in a private meeting that includes a second manager or HR representative. No “antagonists” or other employees should be present.
The dealership may also want to consult with legal counsel before termination especially if dealing with a long-time employee, a member of a protected class, or if the employee has recently lodged a complaint. Any medical issues, substance abuse issues, recent leaves, work-related injuries, or other potential issues should also be discussed with an attorney to ensure compliance with applicable law.
Megan Youngling Carannante and James F. Martin are partners at the law firm Pullman & Comley with offices in Springfield as well as Connecticut, Rhode Island, and New York.
Check Your Job Application – Lie Detector Notice Law Sparks Lawsuits
By Jeff Fritz, Esq. and Joshua Nadeau, Esq. Partners, Fisher & Phillips LLP
Massachusetts auto dealers already juggle enough compliance headaches—from wage laws to advertising rules. But a little-known state law has recently triggered a wave of lawsuits against employers, all because of a missing sentence on job applications. At least one large company has already paid out, and plaintiff’s attorneys are now hunting for their next target.
Without a simple disclaimer in your job application, your dealership could face a class action lawsuit and thousands in liability, even if you have never used a lie detector test.
your paper or online application—even unintentionally—you could be sued for at least $500 per applicant, plus attorneys’ fees. Worse, applicants can file class actions on behalf of all others who applied using the same form. Some terms in the law, like “aggrieved” and “each such violation,” are vague, which plaintiffs’ lawyers are using to their advantage.
Recent Lawsuits Are Just the Beginning
Starting in 2023, plaintiff’s attorneys began targeting employers over this issue. In the first high-profile case, the plaintiff claimed that a video interview tool acted like a lie detector and that the employer
performed remotely, like a digital sales coordinator or customer service rep, and a Massachusetts resident might apply, you should include the notice. Even outof-state employers are getting pulled into these lawsuits when Massachusetts residents apply online.
3. Evaluate interview tools and AIbased assessments. The law defines “lie detector” very broadly. It could include certain written tests or automated tools that claim to analyze honesty or truthfulness. If your dealership uses AI software to screen candidates or conduct video interviews, review those systems now to ensure compliance.
The law defines “lie detector” very broadly. It could include certain written tests or automated tools that claim to analyze honesty or truthfulness.
failed to provide the required notice. The company could not get the case dismissed early and ended up settling in 2024.
4. Consider use of arbitration agreements. Many dealerships already use arbitration agreements with class and collective action waivers. You should consider whether to incorporate similar agreements into your job applicants to mitigate against the risk of being tagged with a class action from applicants as well.
Here is what is happening and what you need to do right away to avoid getting caught up in this growing legal trend.
The Law You Have Probably Never Heard Of
Massachusetts law has long banned employers from using lie detector tests in the hiring process. That part is straightforward. But what many business owners do not realize is that every job application in Massachusetts must include the following disclaimer, word for word: “It is unlawful in Massachusetts to require or administer a lie detector test as a condition of employment or continued employment. An employer who violates this law shall be subject to criminal penalties and civil liability.”
If you are missing this language from
Since then, the floodgates have opened. Class action lawsuits are being filed against employers across the state. If your dealership is hiring and your job applications are missing this notice, your risk exposure is real.
Five Steps Every Dealership Should Take Now
To protect your business, you should immediately take these five simple steps:
1. Check your job applications—today. Make sure the exact notice is included directly on your application form, not just in job postings or careers pages. If you are using paper or digital applications for sales reps, service techs, finance staff, or any other role, they all must have the disclaimer.
2. Do not overlook remote applicants. If you are hiring for roles that could be
5. Update your separation and release agreements. It is good practice to update Massachusetts separation agreements to include waivers of claims under this law. If a former employee tries to bring a claim based on the missing notice, this waiver can help reduce your liability.
Bottom Line for Dealers
This is an easy compliance fix: Add one sentence to your job applications. But if you overlook it, you could face serious legal exposure. Plaintiffs’ lawyers are actively seeking new targets, and auto dealers hiring regularly or at volume are prime candidates. Talk to your legal counsel now to confirm your forms are compliant.
If you need help reviewing your applications or have questions about hiring tools, the employment attorneys at Fisher Phillips are here to help.
Price It Right – Tariffs and Truth-In-Pricing
By Lauren Bailey, VP of State Legal & Regulatory Affairs, ComplyAuto
A wave of pending tariffs on imported vehicles and parts is reshaping pricing dynamics across the automotive industry. Some OEMs have announced they are adjusting MSRPs, supply chains are shifting, and inventory pressure is building.
In the middle of it all, dealers face a critical challenge: How to explain potentially rising prices without making legally risky claims.
It is tempting to point to tariffs since tariffs are in the headlines and on customers’ minds. Not only is this a potentially risky strategy from a public relations perspective (see, e.g., Amazon’s tariff experience), it also raises potential regulatory risks for the dealership. Basically, unless a dealership knows that a specific vehicle’s price increase is directly tied to a tariff, advertising a price increase based on “tariffs” can trigger a deceptive advertising claim under Section 5 of the Federal Trade Commission Act and various state advertising laws.
Advertising Claims and Attribution
When vehicle prices rise, dealerships often feel compelled to explain why. And in a high-tariff environment, some are tempted to attribute a price increase or a market adjustment to a tariff. That is where trouble begins.
According to the FTC, price advertising must be truthful, non-deceptive, and substantiated. Any claim made in an advertisement, including the reason for a price change, must be truthful, not misleading, and supported by evidence. States also have similar requirements for advertising. For example, under the Maryland Consumer Protection Act, a dealer may not falsely attribute a price increase to tariffs if the claim misleads consumers or omits material facts, such as the absence of any actual tariff-related cost increase.
Here is the takeaway: If your dealership states or implies that a vehicle is more expensive because of a government-imposed
tariff, you must be able to prove that the tariff directly affected the cost of that specific vehicle. General market conditions, assumptions, or headlines are not enough.
What This Means for Dealerships
If you are considering messaging like “Prices adjusted due to tariffs” in your showroom, on your website, or in digital ads, you should take a pause. These claims may seem harmless, but they raise significant regulatory and legal red flags.
Tariff messaging must be substantiated. Dealers are free to raise or lower prices in response to supply, demand, or margin pressure. But the FTC and state AGs expect substantiation for any claim about why a price changed. That means you need to be able to show a direct relationship between a tariff and the price increase.
Saying “this vehicle’s price increased due to tariffs” implies that you know the cost impact. If the vehicle was not subject to a tariff or if the price increase was due to something else, that claim becomes misleading.
NOTE, HOWEVER – Many state laws strictly regulate dealer fees or “doc” fees, and these fees may be the only type of fee a dealer may be legally permitted to add to a vehicle price. Adding a “tariff fee,” even if substantiated, may implicate these state fee regulations, and dealers should exercise caution before adding this or any other fee to the price of a vehicle.
Remember – “Advertisements” include more than just websites. The definition of “advertisement” under federal (and most state) law is so broad that basically any discussion of a vehicle or a price with a consumer can be considered an advertisement. That includes vehicle display pages, email price quotes, social media, and virtually any other form of consumer communication. Even statements made verbally to consumers about tariffs (or any other material price term)
could be deemed deceptive if not accurate and substantiated.
“Made in the USA” claims present a high standard. One related potential issue in this context are claims about domestic manufacture of vehicles, whether related to tariffs directly or not. Some OEMs and dealers may lean into patriotic messaging which highlights vehicles as “Made in America”. But the FTC’s “Made in USA” standard is strict; to lawfully make an unqualified US-origin claim, a product must be “all or virtually all” made in the United States. That includes parts, processing, and assembly.
Final assembly alone is not enough if key components come from abroad. Dealers repeating or amplifying origin claims should verify the claim’s accuracy. False US-origin claims can violate Section 5 of the FTC Act and lead to enforcement actions, even if the original claim started with the manufacturer. For a deeper dive on this issue, see ComplyAuto’s guide Navigating Made in the USA Claims in Dealership Advertising.
Action Items for Dealerships
To navigate these risks, dealerships should:
• Review all advertising content to ensure no price increase is attributed to tariffs unless verifiably true (and consistent with state dealer fee laws);
• Train staff to avoid speculative or generalized pricing explanations tied to tariffs or government action, or conversely, any promises about “Made in the USA” or domestic content, in the context of tariffs or otherwise;
• Audit website, social, and BDC communications to ensure FTC-compliant language; and
• Avoid phrases like “due to tariffs,” “government-mandated,” “new surcharge,” or “Made in America,” unless legally accurate.
see PRICING, page 39
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Another California Privacy Enforcement Action – and The 9th Circuit Makes It Nationwide!
By Mark Sanborn, Senior Product and Regulatory Counsel, ComplyAuto
On April 16, 2025, the California Privacy Protection Agency (CPPA) issued its second recent enforcement action in 2025 under the California Consumer Privacy Act (CCPA), announcing a $345,178 penalty against national clothing retailer Todd Snyder, Inc. The fine stemmed from the retailer’s failure to properly handle consumer opt-out requests and related violations of California’s privacy laws. This enforcement action is another example of how essential it is for retailers to implement and maintain compliant privacy practices, not only in California but across the country.
In Todd Snyder’s case, the company allegedly used non-compliant verification processes and misconfigured its privacy tools. The message is clear: Businesses must ensure their privacy management systems meet all technical, legal, and operational requirements under state and federal law.
Notably, the agency stressed that the retailer itself was responsible for the violations, despite the fact that they had engaged a vendor to try and help them comply with the complicated requirements of the CCPA.
“Businesses should scrutinize their privacy management solutions to ensure they comply with the law and work as intended, because the buck stops with the businesses that use them,” said Michael Macko, head of the Agency’s Enforcement Division.
Background and Allegations
The CPPA is the enforcement agency that was recently established in California solely to enforce the CCPA and other privacy laws. According to the agency, the retailer failed to properly oversee or configure its online privacy portal. As a result, consumer opt-out requests to stop the sale or sharing of personal informa-
tion were not processed for a 40-day period beginning in late 2023. This alleged breakdown in the company’s privacy infrastructure left consumers without a functional way to exercise their legal rights.
The CPPA also alleged that Todd Snyder imposed unnecessary barriers on consumers by requiring them to verify their identities and provide more information than legally necessary in order to submit opt-out requests. Under the CCPA, the process for opting out must be straightforward and accessible. Adding hurdles, especially ones not required by law, was deemed a violation.
In addition to the financial penalty, Todd Snyder agreed to a series of corrective actions. These include reconfiguring its opt-out systems to ensure they function properly, providing employee training on CCPA requirements, and implementing internal policy changes to support consumer privacy rights. The company must also demonstrate that its privacy infrastructure is functioning correctly going forward. This resolution makes clear that privacy compliance is not a one-time checklist; rather, it is an ongoing obligation that involves people, processes, and technology that can all be verified.
It Is Not Just in California
This enforcement action is a strong reminder that regulators are taking privacy laws seriously, especially, but not solely, in California. In fact, the CCPA recently announced the “Consortium of Privacy Regulators” with regulators from seven other states: California, Colorado, Connecticut, Delaware, Indiana, New Jersey, and Oregon. This likely signals an effort to expand state and federal privacy regulatory enforcement in these states and beyond.
The 9th Circuit Expands California State Law
Jurisdiction Nationwide
On April 21, 2025, the United States Court of Appeals for the Ninth Circuit, issued a watershed decision that expands personal jurisdiction with respect to online platforms (like websites). In Briskin v. Shopify, the 9th Circuit broke with decades of precedent to allow claims under a California state law to be applied to a retailer with a website that was accessible nationally, but not specifically aimed at California.
In Briskin, plaintiffs alleged that Shopify violated the California wiretapping law called CIPA. Shopify is not a California company and did not aim its services directly at California. Nevertheless, the court found that, because its website was accessible in California to California residents, it was fair and reasonable to subject Shopify to jurisdiction in California with respect to California laws.
Briskin represents a massive shift for all companies with e-commerce sites. Plaintiffs are expected to aggressively push for broader assertions of jurisdiction, especially in privacy and data-collection cases involving online services.
This increased enforcement atmosphere, coupled with a dramatic expansion to a national level, means that all dealers need to ensure they are complying with their state laws and considering the potential implications of other state laws as well.
What This Means for Dealers
1. Make sure your privacy tools actually work. Retailers must have clear and reliable procedures in place for handling privacy requests, and these systems must be tested regularly to ensure compliance. Importantly, using just any consent management or privacy platform does not au-
tomatically guarantee legal compliance. Some widely used platforms, especially those developed outside the auto retail sector, may not fully meet CCPA standards.
Some platforms also do not operate as they say they do, such as loading cookies that say they block or having non-functioning consumer request portals. Businesses must perform due diligence to confirm that the tools they use actually work as advertised. As the CCPA put it, “Using a consent management platform doesn’t get you off the hook for compliance.” Just because a tool is popular doesn’t mean it’s compliant.
Retailers should carefully review their request flows and verification requirements to ensure they are collecting only the data that is truly needed.
2. Do not over-verify. Another lesson from this case is the need to minimize the amount of information collected from consumers during the privacy request process. The CPPA found that Todd Snyder asked for more personal data than was necessary to process opt-out requests, which only compounded its violations.
Retailers should carefully review their request flows and verification requirements to ensure they are collecting only the data that is truly needed.
Additionally, businesses must avoid imposing identity verification requirements for CCPA opt-out requests unless absolutely necessary. While some level of verification may be appropriate for sensitive actions like data access or deletion, the CCPA generally does not allow it for optouts. Creating unnecessary barriers can expose companies to regulatory scrutiny and penalties.
3. Take ownership of all websites, even third-party controlled ones. Re-
tailers should also take care to audit all websites associated with their business, including those operated by third parties. Even if a vendor manages a subdomain or embeds tools in your site via iframe, your company remains legally responsible for compliance. It is critical to maintain full visibility and oversight. Aside from the compliance implications, understanding how data is collected and used on your website is simply good business. Your customers’ data is valuable and sensitive. You should be the one in control of it, not a third party.
4. Respect consumer privacy rights across all states. This is not just about California. With 19 states enacting or preparing to enact comprehensive privacy laws, and especially in light of the Shopify case, the stakes are rising nationally.
5. It is not just a regulatory risk. Misconfigured or misleading privacy tools do not just expose Dealers to regulatory penalties. They also can give rise to consumer lawsuits under state unfair or deceptive acts or practices (UDAP) laws. When a business offers opt-out mechanisms that appear functional but fail to process requests as intended, it can mislead consumers and potentially constitute deceptive conduct. This creates legal exposure on two fronts: Enforcement by privacy regulators like the CPPA or state attorneys general on the one hand, and civil litigation by consumers or class action firms on the other hand.
In today’s environment, where both regulators and private plaintiffs are actively monitoring corporate privacy practices, retailers must treat functionality and transparency as equally critical components of compliance.
Why Dealers Need Expert Help
Managing privacy compliance is no small task. It requires a nuanced understanding of both legal obligations and the technical systems that support them. With 19 states now having enacted or about to enact comprehensive privacy laws and with enforcement heating up nationwide, it is clear that dealers need experienced
guidance.
A qualified compliance partner should offer automated privacy management tools, regular testing of privacy portals, employee training, ongoing regulatory monitoring, tailored implementation strategies, and industry knowledge. Ideally, your partner has years of experience working with the CCPA and similar laws and can provide a proactive, scalable approach that fits your business needs.
There is no reason to leave your business exposed to unnecessary risk. At ComplyAuto, we specialize in helping dealers navigate today’s complex privacy landscape with confidence. From automated opt-out solutions to training and best-in-class cookie consent banners, we offer the tools and expertise needed to stay ahead of compliance challenges. Now is the time to act, before the regulators come knocking.
Tariffs and TruthIn-Pricing
PRICING, from page 36
Remember, advertising law hinges on consumer perception. If a customer could reasonably believe that the price you are advertising or charging is higher because of a tariff and that is not factually true, you may have a potential compliance problem. Price freely, but message carefully. t
ComplyAuto offers the tools and guidance dealerships need to stay compliant in shifting regulatory environments. From real-time ad review and policy vetting to F&I deal accuracy and staff training, we help you stay out of trouble while focusing on your bottom line. With compliance automation, policy insight, and cutting-edge risk detection like Guardian, along with powerful tools like DealCheck AI, ComplyAuto gives you peace of mind and the confidence to price it right. Reach out today to learn more.
Reynolds & Reynolds Quarterly Report
By Hannah Ross Marketing Program Manager
Customers Often Unhappy with F&I Department, Report Finds
It is no secret that unhappy customers are often the loudest when posting reviews of their products or experiences. So perhaps it is easy to roll your eyes when a report analyzing millions of Google reviews says dealership F&I departments need to improve.
But what if that same report determines whether customers are generally happy with sales departments? What about the many times a customer highlights a positive experience with sales and their disappointment with F&I in the same review?
The report, conducted by Widewail from the first quarter of 2023 to third quarter of 2024 on more than 18,000 franchised dealerships, shared reviews praising one department and disparaging another were common. For example:
“I absolutely love my vehicle. Joe was fantastic in the sales process. When I got into finance, they weren’t sure which incentive would apply for this vehicle, they tried to sell me too many F&I products. I don’t want GAP. I wish there hadn’t been such a high-pressure finish to the sale.”
Long story short, it might not be a bad idea to keep your eyes focused straight ahead and consider customer perception. Are you pushing products too hard? Are your F&I documents transparent enough that the customer feels confident in what they are signing? Confident customers are happy customers, and happy customers tend to leave positive reviews.
And why should you care about positive reviews?
• 81% of potential customers tend to check Google reviews before engaging with a business.
• Google reviews have about a 20% impact on your business through their impact on search engine ranking and SEO.
• About 74% of consumers feel positive Google reviews increase trust in a business.
Improving transparency and efficiency within your F&I department can go a long way in helping customers have a more positive experience in your dealership. Not sure where to start? Focus on the backbone of your sales – the F&I documents.
For information on how to get started, contact your dedicated Compliance Consultant at www.law553.com/cp/complianceconsultants. They can get you started with a free F&I document review.
California Introduces Bill Aimed at Increasing Regulations for Dealers
California State Senator Benjamin Allen recently introduced Senate Bill 776, called the California Combating Auto Retail Scams (CARS) Act. This is the first state-backed legislation introduced following the Fifth Circuit vacating the FTC’s Vehicle Shopping Rule.
The bill would impose new regulations on California automotive dealers, many of which tie back to the FTC’s rule. Key provisions include:
• Making it a violation for dealers to misrepresent vehicle sale information, including financing terms, costs, available of vehicles at advertised prices, and benefits of add-ons;
• Requiring dealers to clearly state certain disclosures, such as the offering price, total amount the customer will pay, that add-ons are not required, and required downpayment;
• Prohibiting dealers from charging for add-on products or services that do not benefit the customer;
• Mandating a 10-day right to cancel cool-
ing off period; and
• Requiring dealers to maintain necessary records for seven years (an increase from the FTC’s rule).
The California bill does not come as a surprise to those in the industry. The Consumer Financial Protection Bureau released a report shortly after the Vehicle Shopping Rule decision providing recommendations on how states could strengthen consumer protections.
While the first state-level Vehicle Shopping Rule has been introduced in California, it is not expected to be the last. The future of F&I compliance is just as much in the air now as it was last year. Do not wait until tomorrow to get your F&I documents in order, get in touch with an experienced Compliance Consultant at www. law553.com/cp/complianceconsultants to discuss your free F&I Document Review.
O’Loughlin Inducted Into F&I Hall of Fame
The Reynolds and Reynolds Company congratulates Terrence J. O’Loughlin, director of compliance for Reynolds Document Services, for his induction into the F&I Hall of Fame and a career of service to law and compliance.
“It gives me great pleasure to congratulate Terry on this incredible achievement. We thank him for his dedication to ensuring dealerships have the tools they need to transact with their customers in a compliant and ethical manner,” said Chris Walsh, president of Reynolds.
The Bobit Dealer Group created its F&I Hall of Fame and inducted its first three honorees in 2024. During the inductee selection process, the committee considers seven criteria, of which O’Loughlin is a prime example: innovation and impact; leadership and vision; ethics and integrity; educational and mentorship contributions; regulatory and policy influence; community and societal impact; and career longevity and consistency.
O’Loughlin’s contributions to innovation and impact have led to significant im-
Improving transparency and efficiency within your F&I department can go a long way in helping customers have a more positive experience in your dealership.
provements. He participated in redrafting the LAW® 553® Retail Installment Sale Contract, arbitration and non-arbitration versions, for all 50 states. He also draft-
all states. He drafted the LAW Universal Lease Contract as well.
ed and redrafted a generic suite of all the consumer-facing documents needed to underwrite a vehicle transaction for dealers. This suite numbers over 30 documents and has been the basis for Reynolds’ state-specific libraries, which are now offered in
O’Loughlin’s ethics are beyond reproach. As an investigator for the Florida Attorney General’s Office, he got his introduction to the car business in 1990 and soon became the state’s point of contact for almost all dealer complaints. In 1994, he drafted Florida Statute, Chapter 521, Motor Vehicle Lease Disclosure Act, the first lease disclosure statute of its kind, providing basic disclosures. It became law in 1995 and was emulated in other states.
O’Loughlin’s track record of contributions to the education and professional de-
velopment of others spans over 30 years. Since 1994, he has authored numerous articles for F&I and Showroom, Compliance Today, P&A, Dealer Compliance Today, Consumers Digest, At Home With Consumers, Consumers’ Research, Going Places, Non-Prime Times, Encyclopedia of Finance and Insurance Management, and others.
From a regulatory and policy influence standpoint, his contributions to the development, reform, and interpretation of laws and regulations affecting the finance and insurance industry have been significant.
“Without a doubt, O’Loughlin’s lengthy career has had a positive impact on dealers and the automotive retail industry as a whole,” concluded Walsh. “His three-plus decades of service to both consumers and dealers has shown him to be a man worthy of honor in the F&I Hall of Fame.”
Harvesting Value: What Dealership Owners Need to Know Before the Exit
By Dave Clayman CEO, Twelve Points Wealth Management
After years of building your dealership—navigating inventory swings, motivating sales teams, and adapting to shifting consumer trends—the question becomes: How do you turn that success into lasting personal wealth?
That is the purpose of the Harvest Stage of the value acceleration process. It is not just about selling your business. It is about harvesting the value you have built in a way that secures your future, protects your legacy, and rewards your hard work.
The Harvest Stage is where the rubber meets the road. It is the final phase in a broader strategy that focuses on building transferable value, aligning personal and business goals, and ensuring a successful transition, whether that means a sale, succession, or recapitalization. For dealership owners, that transition requires more than a handshake deal; it demands planning, precision, and the right team.
Timing is critical. The auto industry is rapidly evolving. Consolidation among large dealer groups, digital retailing, the EV transition, and OEM pressures, and of course, now tariffs, all influence how and when you should exit. Waiting too long or going in unprepared can leave significant value on the table. A successful harvest starts years before the actual transaction, with a clear understanding of your options and goals.
The first step is gaining clarity on your exit strategy. Whether you are eyeing a third-party sale, transitioning to a family member, or exploring a private equity recap, each path has unique implications for
Whether you are eyeing a third-party sale, transitioning to a family member, or exploring a private equity recap, each path has unique implications for taxes, control, and continuity.
taxes, control, and continuity. Alongside that, getting a professional valuation—not just based on revenue multiples but factoring in operational health, team strength, and customer loyalty—gives you a realistic view of where you stand today and what gaps need closing.
Another critical piece is personal financial readiness. Most dealership owners have the majority of their net worth tied up in the business. Transitioning that value into usable, sustainable wealth takes more than a payout. It requires tax strategy, estate planning, and a roadmap for your next chapter, whether that is retirement, reinvention, or a new venture.
Just as important is ensuring your people and customers are looked after post-transaction. One dealership owner in the Mid-
west, for example, made employee retention and customer care a condition of the sale. In partnership with their advisory team, they structured a deal that included multi-year retention bonuses for key employees and required the buyer to maintain the existing customer service protocols for at least 24 months. This approach gave the owner peace of mind and preserved the dealership’s strong community reputation.
In the end, the Harvest Stage is not just about exiting. It is about exiting well, on your terms, with clarity, and with confidence that your dealership’s story will continue long after you have passed the keys. The earlier you begin planning, the more control you will have over the outcome— and the better your harvest will be.
The Power of Perspective – Transforming Attitudes in the Retail Auto Business
By Tim Marbut
Ethos Group
In the fast-paced, high-pressure world of the retail automobile business, attitude can make all the difference. It is a field known for competition, long hours, and constant interaction with customers who are often skeptical or hesitant. For many in the industry—from salespeople and finance managers to service advisors and dealership owners—how one views the daily challenges of the job can dramatically shape not only their experience but their level of success.
One of the most powerful tools we have to shift our experience in this business is perspective. If we learn to change our view of situations—especially the difficult ones—into something positive, we can transform our attitude, our performance, and ultimately, our results.
The Power of Perspective
Perspective is the lens through which we
interpret the world. It determines how we see situations, people, and ourselves. Two people can face the same circumstance and respond in completely different ways depending on their perspective. In the retail auto industry, one salesperson might see a slow month as a sign of doom, while another sees it as an opportunity to sharpen skills, follow up with past leads, and prepare for a rebound. The situation is the same, but the perspective—and therefore the outcome— is different.
Choosing a positive perspective does not mean ignoring reality or pretending everything is perfect. It means deciding to focus on the potential and the lessons in every experience. It means seeing setbacks as setups for comebacks, and difficult customers as chances to practice patience, empathy, and persuasion.
Shifting Attitudes on the Sales Floor
In auto retail, the sales floor is the heartbeat of the dealership. It is also where pressure mounts: quotas need to be met, customers walk in with suspicion, and online competition is fierce. It is easy for negativity to creep in, especially after a few deals fall through or customers walk out the door without buying.
But imagine if, instead of dreading the next objection or bracing for rejection, salespeople adopted a mindset that every customer interaction is a new opportunity. What if they saw each “no” as one step closer to a “yes”? This positive perspective does not just improve morale; it changes results. Customers can feel attitude. They pick up on tone, body language, and sincerity. A salesperson with a confident, optimistic outlook builds trust faster, communicates more clearly, and is more resilient under pressure.
When we start seeing challenges as opportunities to grow, our attitudes naturally become more enthusiastic, and solutions focused. A slow day becomes a chance to improve product knowledge. A tough negotiation becomes a test of creativity and emotional intelligence. This shift in thinking leads to better relationships, stronger performance, and ultimately, more sales.
Management and Leadership Perspective
Managers and dealership leaders are not immune to the stresses of the auto retail world. They juggle employee performance, inventory issues, customer complaints, and profit margins. The temptation to focus on what is going wrong is strong. But effective leaders know the power of perspective.
When leaders model a positive outlook—focusing on growth, potential, and possibilities rather than just problems— they create a culture where employees feel empowered, supported, and motivated. A manager who reframes a missed target as a learning opportunity inspires a team far more than one who criticizes and demoralizes. Positive perspective in leadership also fosters better communication, stronger team dynamics, and more consistent longterm performance.
Service Department Positivity
The service department is often one of the most overlooked but vital parts of
When leaders model a positive outlook—focusing on growth, potential, and possibilities rather than just problems—they create a culture where employees feel empowered, supported, and motivated.
a dealership. Service advisors deal with frustrated customers, unexpected vehicle issues, and tight schedules. The environment can quickly become negative if team members focus solely on the problems.
But what happens if service advisors see each interaction not as a complaint to manage but as a chance to build longterm customer loyalty? What if they approach every issue with the mindset that they are solving problems and providing peace of mind, rather than simply checking off tasks? This perspective shift creates a sense of purpose and pride in their work, which customers can see and feel. A positive attitude in service can lead to higher customer satisfaction scores, more return business, and better word-of-mouth referrals.
Training the Perspective Muscle
Like any skill, developing a positive
perspective takes practice. It starts with awareness—catching ourselves in negative thought patterns and consciously choosing a different viewpoint. Dealerships can encourage this mindset shift by investing in regular training, celebrating small wins, and promoting stories of success and perseverance.
Mentorship programs, positive reinforcement, and supportive management can also help reinforce the habit of looking for the good in every situation. Over time, a positive perspective becomes the default rather than the exception. When this happens across all departments, it changes the culture of the entire dealership.
Final Thoughts
In the retail automobile business, where every interaction counts and every detail matters, attitude is everything. And attitude starts with perspective. When we train
ourselves to see the positive—even in the hard days, the long hours, and the tough customers—we change the way we show up. We become more resilient, more creative, and more effective. We connect better with customers, collaborate better with coworkers, and lead better as managers.
Changing your perspective will not change the challenges of the auto business, but it will absolutely change your experience of them. In this business, that change can be the difference between burnout and breakthrough, between surviving and thriving.
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.
SIEM & SOC – What They Are, and Why Your Dealership Needs Them Both
By Scott Spatz President, Cooperative Systems
Today’s dealerships rely on technology more than ever – from digital retail tools and online credit apps to cloud-based CRMs and connected service systems. While this tech makes operations smoother, it also opens the door to a growing list of cybersecurity risks.
That is why it is time for dealerships to think beyond basic firewalls and antivirus software. If you want to protect your business, your customers, and your bottom line, you need to know two acronyms: SIEM and SOC.
If those terms are unfamiliar, do not worry. You are not alone. But learning what they mean, and how they work together, can be a game-changer for your dealership’s security posture.
What is SIEM?
SIEM (pronounced “sim”) stands for Security Information and Event Management. In short, it is a platform that collects data from across your dealership’s systems, things like login attempts, file transfers, firewall activity, and user behavior. It pulls all that information into one dashboard, watches for unusual patterns, and sends alerts when something does not look right. Think of SIEM like the digital equivalent of security cameras. It is watching your IT environment, looking for anything out of the ordinary. For example, if someone tries logging in to your finance portal at 2 a.m. from outside the country, your SIEM will notice and flag it immediately. The idea is to detect threats before they cause damage, not after.
What is a SOC?
This is where things get really important. A SOC — Security Operations Center — is the team of cybersecurity professionals who monitor your SIEM alerts in real time. They are the ones investigating suspicious activity, deciding if it is a false alarm or a real threat, and taking action to contain any issues.
Where SIEM is the technology, the SOC is the people.
Most dealerships do not have the resources to hire and train a 24/7 security team, which is why many choose to partner with an MSP (Managed Service Provider) or MSSP (Managed Security Service Provider) that offers SOC as a service. This gives you access to expert monitoring without the overhead of building it in-house.
Why You Need Both
This part is key. Having a SIEM without a SOC is like having an alarm system no one is watching. It will go off, but no one will respond. Having a SOC without a SIEM? That is like hiring a guard but giving them no cameras to watch.
These two tools work best together. The SIEM gives visibility; the SOC provides action.
Let’s say a cybercriminal is trying to get into your network using a stolen employee password. The SIEM detects multiple failed logins and flags it. The SOC sees the alert, investigates, disables the account, and resets the password. All of this might happen while you are asleep. Without both systems in place, that same attacker could have accessed customer data, installed ransomware, or worse.
What This Means for Your Dealership
You may be wondering if this level of protection is overkill. After all, you are not a bank or a tech company.
But the truth is, auto dealerships are a major target for cybercriminals. You col-
lect sensitive customer information. You process financial transactions. You connect with vendors, cloud-based tools, and more. That is a goldmine for hackers.
Here is how SIEM + SOC can help:
• Protect customer data and keep your dealership in compliance with FTC Safeguards.
• Stop ransomware before it spreads across your network.
• Monitor remote access from vendors, third parties, or off-site employees.
• Identify breaches faster, so you can respond before real damage is done.
In-House vs. Outsourced: What Works Best?
If you are a large auto dealer group with a full IT team, you might consider building your own SOC. But for most dealerships, outsourcing is the practical and cost-effective way to go.
Partnering with an MSP that specializes in cybersecurity gives you access to enterprise-grade tools and a team of experts, without needing to hire anyone or invest in expensive infrastructure.
It is scalable, predictable, and tailored to your needs. Plus, these providers often know the automotive space, so they understand how your dealership operates and what systems you use.
How to Get Started
Not sure where to begin? Here are three simple questions to ask your team or your IT provider:
• Do we have visibility into who is accessing our systems and when?
• If something suspicious happened right now, would we know?
• Do we have a clear plan (and team) ready to respond to a cyber incident?
If the answer to any of those is “no” or “not sure,” it is probably time to look into SIEM and SOC options.
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from previous page
The Bottom Line
Cybersecurity can feel overwhelming, especially with all the technical jargon. But the good news is, you do not have to figure it all out on your own.
Secure
By investing in SIEM and SOC - whether in-house or through a trusted partner – you are not just checking a compliance box., you are protecting your customers, your employees, and your business from the kind of threats that shut companies down every day.
Need help figuring out if your dealership is protected? Talk to your IT partner or reach out to a Managed Service Provider like Cooperative Systems, who has decades of experience in the auto industry. It is a conversation worth having before a breach forces you to.
Your Dealership Now - Why Multi-Layered Security Is Necessary
In the fast-paced world of auto sales, your dealership’s ability to protect against cyber threats defines both your reputation and your operational efficiency. The data your dealership handles daily—from personal details of customers to high-value financial transactions—is extremely sensitive and highly attractive to cybercriminals. Protecting your dealership is not just about safeguarding data; it is about ensuring the continued success and growth of your business.
Implementing a multi-layered security strategy is no longer optional but a necessity for survival and competitive advantage. Here’s why a multi-layered security approach is essential for any dealership, along with practical steps you can start implementing today.
The Critical Need for Multi-Layered Security
Your dealership is not just a showroom for cars; it is a hub of data transactions involving sensitive information that, if compromised, could significantly impact your operations and trust with customers. The connectivity required between various platforms and external partners increases vulnerability to attacks, elevating the need for a comprehensive security strategy. A multi-layered security approach ensures that if one defense layer fails, others are in place to mitigate a breach—providing a fail-safe that keeps your operations running smoothly.
see SECURITY, page 48
Secure Your Dealership Now - Why Multi-Layered Security Is Necessary
SECURITY, from page 47
Elements of Multi-Layered Security
A complete security strategy encompasses multiple layers of protection, each designed to address different aspects of your digital and physical operations:
• Physical Security: This is the foundation of your dealership’s security. Measures such as locks, surveillance cameras, and controlled access to sensitive areas prevent unauthorized physical access to your dealership’s critical infrastructure.
• Network Security: Your dealership’s network is the backbone of your digital operations. Protecting it involves deploying firewalls, using secure and encrypted connections, and utilizing
vention strategies.
• Employee Training: The human element often poses one of the greatest risks. Regular training and awareness programs are essential to equip your staff with the knowledge to identify phishing attempts, manage data securely, and adhere to your dealership’s security protocols.
Steps to Implement Multi-Layered Security
Developing a solid security framework is an ongoing process. Here are essential steps to building a multi-layered defense:
• Conduct a Comprehensive Security Audit: Start with an in-depth assessment of your current security measures. Identify all potential vulnerabilities in your physical premises, IT infrastructure, network setups, and data-handling practices.
intrusion detection systems to prevent unauthorized access and safeguard data as it flows across your network.
• Application Security: Applications used in daily dealership operations need regular updates and monitoring to protect against vulnerabilities. Implementing secure coding practices and regular security audits ensures your applications are not easy targets for attackers.
• Endpoint Security: Each device—from desktops to smartphones connected to your network—can serve as an entry point for security threats. Managing these endpoints with updated antivirus software, robust malware protection, and consistent patch management is crucial.
• Data Security: Perhaps the most critical layer, data security involves implementing measures to protect the integrity and privacy of your data. This includes encryption of data both at rest and in transit, access controls, and the implementation of data loss pre-
• Develop a Custom Security Plan: Based on the audit results, develop a security plan that addresses identified weaknesses. This plan should prioritize actions based on the level of risk and potential impact on your dealership.
• Implement Strategic Security Measures: Regularly roll out security upgrades, starting with the most critical aspects of your infrastructure. This may involve technological enhancements, such as upgrading your firewall, or procedural changes, like revising your data access policies.
• Engage and Train Your Employees: Implement ongoing training programs to ensure all employees understand the security risks and how they can help mitigate them. Foster a culture where security is everyone’s responsibility.
• Monitor, Review, and Adapt: Cyber threats are continually evolving, which means your security measures should too. Regularly review your security protocols and adjust them as needed. Continuous monitoring of your systems and networks will help detect and respond to threats quickly.
Take Action Now
The time to reinforce your dealership’s cybersecurity is now. Waiting until a breach occurs means you have waited too long. Proactively enhancing your security measures can prevent significant financial losses and protect your dealership’s hard-earned reputation. Investing in comprehensive security measures provides peace of mind and is a critical investment in your business’s longevity and success.
Are you ready to strengthen your defenses? Make sure to join us every 2nd Tuesday of the month for our Coffee with Coopsys webinar series. Visit our website at www.coopsys.com/msada to register for future webinars, view past recordings, and learn more.
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The Three Core Duties of a Manager: Educate, Motivate, and Accountability
By Tim Marbut Ethos Group
Managers are the backbone of any successful organization. They act as the bridge between leadership and employees, ensuring that both individual and team efforts align with organizational vision and goals. While the responsibilities of a manager can vary depending on the industry or organization, three fundamental duties stand out: educating employees, motivating teams, and holding people accountable.
These duties are not just tasks. They are essential pillars that support individual/ team growth, productivity, and success.
1. Educate: Empowering Teams Through Knowledge
One of the most critical roles of a manager is to educate their team. Education goes beyond formal training sessions; it encompasses ongoing learning, skill-building, and ensuring that employees have the knowledge they need to excel in their roles.
• Training and Development: Managers must provide initial training for new hires and ongoing development for existing team members. This includes teaching individual job expectations, covering product knowledge, process understanding, and cultural awareness.
• Clear Communication: Education also involves clarity in expectations. Managers need to articulate the team’s objectives, individual roles, and the broader organizational mission. By doing so,
they provide employees with a sense of purpose and direction. A lack of understanding often leads to confusion, mistakes, and frustration, which can be mitigated through clear, educational communication.
• Continuous Feedback: Teaching moments arise in everyday work. Managers should offer constructive feedback to help employees improve. For instance, if an employee struggles with a task, the manager should take the time to explain where improvements can be made and guide them toward a better approach. By prioritizing education, managers empower their teams to grow and succeed. A well-educated team is confident, capable, and better equipped to tackle challenges.
2. Motivate: Inspiring Teams to Achieve Their Best Motivating employees is another cornerstone of effective management. Without motivation, even the most skilled team members can struggle to perform. A manager’s ability to inspire their team can make the difference between mediocrity and excellence.
• Recognizing and Celebrating Achievements: Employees thrive when they feel valued. Managers can motivate their teams by recognizing hard work, celebrating accomplishments, and showing appreciation. Whether it is a simple “thank you” or a formal recognition program, celebrating successes boosts morale and fosters a positive work environment.
• Setting Goals and Challenges: People are naturally motivated by progress and achievement. Managers can harness this by setting clear, attainable goals for individuals and the team. When employees see their efforts contributing to a larger purpose, they are more likely to stay engaged and motivated. For example,
a sales manager might challenge their team to exceed a monthly sales target, offering incentives for surpassing expectations. This not only motivates employees but also drives results.
• Emotional Support and Empathy: Motivation is not always about rewards; it is also about understanding and support. A great manager recognizes when an employee is struggling, whether due to personal or professional challenges. By providing a listening ear, offering guidance, or even just showing empathy, managers can re-energize their team members and remind them that they are valued. Motivated teams are productive, creative, and resilient. When managers inspire their employees to give their best, they create an environment where everyone feels driven to succeed.
3. Accountability: Ensuring Responsibility and Results
Accountability is the third critical duty of a manager. Without it, even the most motivated and educated teams can falter. Accountability ensures that employees take ownership of their responsibilities and work toward the team’s and individual goals.
• Setting Clear Expectations: Managers must establish clear expectations for performance and behavior. This includes defining roles, deadlines, and standards for quality. When employees know what is expected of them, they are more likely to stay on track and deliver results.
• Monitoring Progress: Accountability requires active monitoring of individual and team performance. Managers need to track progress toward goals, identify potential roadblocks, and ensure that tasks are completed on time. Tools like performance metrics, one-on-one meetings, and CRM software can help managers stay informed.
Managers need to articulate the team’s objectives, individual roles, and the broader organizational mission.
• Addressing Underperformance: Holding people accountable also means addressing issues when expectations are not met. This can be challenging, but it is essential for maintaining team integrity and productivity. A good manager approaches these conversations constructively, focusing on solutions rather than blame. For example, if an employee consistently misses their numbers or deadlines, the manager should discuss the underlying reasons, provide support, and outline a plan for improvement. By addressing issues directly, the manager reinforces a culture of accountability and fairness.
• Leading by Example: Accountability starts at the top. Managers must model the behavior they expect from their teams. If a manager sets high standards for themselves—accomplishing goals, following through on commitments, and
owning up to mistakes—they demonstrate the importance of accountability in practice.
Accountability fosters a culture of trust, reliability, and excellence. When employees know they are accountable for their work, they take pride in their contributions and strive to perform at their best.
The Interconnection of Educate, Motivate, and Accountability
While these three duties are distinct, they are deeply interconnected. Education lays the foundation by equipping employees with the knowledge and skills they need. Motivation provides the drive and inspiration to apply that knowledge effectively. Accountability ensures that efforts are focused, consistent, and aligned with individual or team goals.
Managing with Impact
The role of a manager is complex and multifaceted, but the duties of educating, motivating, and holding employees accountable are at the heart of effective management. These responsibilities not only drive performance but also create a positive and productive work environment. By mastering these three duties, managers can unlock the full potential of their teams, ensuring both individual and organizational success. Ultimately, great managers recognize that their role is not just to oversee tasks but to inspire, develop, and empower the people they lead.
For more information on how Ethos Group can help your dealership develop more leaders, please contact Drew Spring at dspring@ethosgroup.com or (617) 694-9761.
Powering Ahead: How New England Dealerships Can Navigate the 2025 Electricity Market
By Steve Borelli Senior Sales Representative, Sprague Energy
With Summer around the corner, energy costs are once again on the rise. For New England car dealerships — where well-lit showrooms, large service departments, and expanding EV infrastructure all contribute to high electricity usage — now is the time to evaluate your energy strategy.
Electricity is no longer a passive overhead cost. In today’s market, it is a strategic lever that, when managed well, can improve both operational efficiency and bottom-line performance.
A Summer of Rising Demand
Air conditioning demand traditionally spikes in Summer, and 2025 is no exception. According to recent market data, electricity prices are trending upward in several U.S. markets, including New England. This is being driven by a combination of tight reserve margins and higher demand forecasts.
Natural gas prices — a key driver of electricity rates — have also seen moderate increases. Storage levels remain below average, and the global LNG market continues to experience volatility, keeping upward pressure on costs.
Forward market data suggests that locking in electricity rates now may help hedge against steeper price spikes later in the season.
Why This Matters to Dealerships
For dealerships, electricity costs can account for a significant share of monthly operating expenses. Extended hours,
climate control, exterior lighting, and EV charging all add to the load, and that load can come with hefty demand charges if not carefully managed.
Adding to the complexity, many manufacturers now require Level 2 or even DC fast chargers to support growing EV inventories. While these chargers are essential for customer experience and compliance, they also significantly increase peak usage.
In short, dealerships have more reasons than ever to approach electricity costs strategically.
Strategies to Control Costs
One of the most effective tools available to dealerships is a fixed-rate electricity
Electricity is no longer a passive overhead cost. In today’s market, it is a strategic lever that, when managed well, can improve both operational efficiency and bottom-line performance.
contract. Locking in rates for a multi-year term can protect against seasonal volatility and improve budget predictability. If your current contract is expiring in the next 12–18 months, or if you are on a variable utility rate, it is worth exploring competitive pricing options.
Dealership groups with multiple rooftops may also benefit from aggregated purchasing strategies, where total usage across all locations is leveraged to secure better rates. This can result in meaningful savings when properly managed.
EV charging also presents a strategic opportunity. Dealerships can explore timeof-use rates, schedule charging during offpeak hours, and consider smart charging solutions to avoid demand spikes. These measures can reduce costs while supporting sustainability goals and manufacturer requirements.
Policy and the Grid: What is Changing
ISO New England, the region’s grid operator, is actively modernizing the electric grid to integrate more renewables and improve reliability. At the same time, state-level clean energy mandates are pushing utilities and suppliers to offer greener energy products and incentives. These developments bring both opportunities and complexities. Dealerships should work with a trusted energy advisor to ensure they’re benefiting from new programs without getting caught off guard by shifting regulations or contract terms.
The Takeaway: Be Proactive, Not Reactive
Electricity costs are too significant — and too unpredictable — to be treated as a static line item. Dealerships that approach energy as a strategic asset will be better positioned to weather market shifts and support long-term growth.
Sprague Energy has been the MSADA’s trusted energy partner for over 20 years, helping dealerships across Massachusetts reduce costs, mitigate risk, and adapt to changing energy demands.
Now is the time to prepare for Summer. A proactive energy strategy today could lead to measurable savings tomorrow. t
For a complimentary analysis of your current energy contract, dealerships can send their most recent electricity and natural gas invoices to msada@spragueenergy.com or reach out to Steve Borelli at 508-768-5252.
Patrick Manzi NADA Chief Economist
Sales Top 17 Million Unit SAAR for Second Consecutive Month
New light-vehicle sales in April 2025 topped a 17-million-unit SAAR for the second straight month, as consumers pulled forward purchases to beat tariffs. April 2025’s SAAR of 17.3 million units represents an increase of 7.7% year-over-year. The SAAR for the first four months of the year totaled 16.7 million units at the end of April, up 7.1% compared to the same period last year. Wards Intelligence estimates that the March and April 2025 SAARs would have been closer to 16 million units were it not for the tariff-induced buying spree.
New light-vehicle inventory on the ground and in transit declined year-over-year in April 2025 for the first time in three years. At the end of April 2025, new light-vehicle inventory totaled 2.62 million units, down 4.1% year-over-year. New vehicle inventory is likely to decline further in May 2025 if a strong sales pace continues. Additionally, production is expected to slow in the coming months, which will impact the pace that inventory can be replenished. According to Wards Intelligence, North American light-vehicle production is expected to total 3.86 million units representing a decline of 5.9% year-over-year
and the fourth straight year-over-year decline.
With lower inventory and high demand from consumers, average incentive spending per unit likely fell during April 2025. According to J.D. Power, average incentive spending per unit is forecast to total $2,808, down $260 compared to March 2025, but up $209 compared to April 2024. We expect that OEM discounts in the aggregate will fall as new vehicle inventory declines, but there will continue to be asymmetries between certain brands and segments.
It will be challenging for the industry to match the sales pace seen in March and April 2025 in the coming months. Many buyers who would have likely purchased a vehicle later in the year have pulled forward their purchase ahead of tariffs taking effect, and it is very likely that we will see vehicle prices rise. The exact timing of vehicle price increases is tough to pinpoint, but we will likely begin to see the effects by Q3 of this year. Our outlook for new light-vehicle sales in 2025 is between 15 and 16 million units.
All Eyes on the Senate in ZEV Battle
By Cody Lusk President & CEO, American International Auto Dealers Association
As dealers everywhere brace for impending tariff-driven price hikes and watch closely for signs of progress from negotiations with our trade partners, there is another issue coming to a head in Washington, D.C., with the potential to upend the way vehicles are sold in all corners of the country.
A clash over who has the authority to establish vehicle emissions mandates in the United States has been brewing for years, across the country and most recently in Congress. Soon, both dealers and consumers will learn whether California’s aggressive push to limit the sale of gas-powered vehicles through its Advanced Clean Cars II regulations will be allowed to move forward.
The conflict, simmering for some time, began to heat up in January of this year when the EPA, in the final days of the Biden administration, granted California a special waiver allowing it to establish its own emissions standards. Those standards aimed to completely eliminate the sale of new gas-powered vehicles in California by 2035 and would require an increasing percentage of new vehicles to be emissions-free beginning in 2026. Other states quickly followed suit with their own plans to adopt California’s mandates. Today, 11 additional states and Washington, D.C., have tied themselves to California’s standards. If enacted, these rules would apply to 133 million people, or about 40 percent of the U.S. population.
As the deadline to begin meeting the new regulations creeps closer, manufacturers, dealers, and consumer advocates
have all raised concerns about the feasibility of the effort. Some states, including Massachusetts, have amended parts of the rules in acknowledgement that enacting them will be both costly and constraining for consumers and taxpayers.
The states adopting California’s regulations need to consider the ripple effects of their actions. Auto manufactures are not positioned to produce a fleet mix that meets both California’s standards and the needs of all Americans. It should be obvious that while zero-emission vehicles are ideal for some, they do not necessar-
Now it is the Senate’s turn to act and ensure a fair, rational approach to emissions policy that respects the needs and realities of drivers in every state.
Dealers can ask their own U.S. Senators to put the brakes on California’s mandates and help restore some much-needed common sense to this debate by urging them to bring the issue to a vote and protect consumer choice. Go to www.aiada.quorum.us/campaign/123219/.
As tariffs continue to roil our industry, it is important that dealers and their Washington, D.C., advocates do not lose sight
the EPA, in the final days of the Biden administration, granted California a special waiver allowing it to establish its own emissions standards.
ily work for the wide variety of climates, commutes, and budgets faced by all Americans. The infrastructure to support ZEVs, and the demand for them, is simply not in place throughout the country.
If these regulations are allowed to remain, gas-powered vehicles will become increasingly rare and expensive, punishing consumers who have no other options to meet their transportation needs. On May 1, the U.S. House of Representatives took an important step toward acknowledging that reality by passing a bipartisan resolution to overturn California’s waiver on a vote of 246-164, with 35 Democrats voting in favor.
of other policy issues, like this one, that will substantially impact our industry.
Automakers and retailers are at a unique crossroads where the very foundation of our industry is under assault from a variety of directions. The question of whether the government should dictate the type of vehicles consumers can buy – through trade barriers, sales mandates, or other methods – is pretty clear to us at AIADA. The right answer is, and always has been, to allow the market to work. Meddling to produce temporary political victories will only hurt American consumers and damage our economy.
By Scott Pearson Chairman, American Truck Dealers
Congress Revokes CARB Waivers as ATD Readies for D.C. Fly-In
As ATD directors and staff prepare to hit Washington, D.C., for our annual fly-in to lobby Congress on our issues, the U.S. House of Representatives and Senate this month took a giant bite out of our agenda – revoking, under the Congressional Review Act, the EPA waivers granted to the California Air Resources Board that would have banned gas-powered and hybrid cars and diesel trucks.
Action began in the U.S. House, which approved the three resolutions with bipartisan support. On May 1, the House approved H.J. Res. 88 to revoke the Advanced Clean Cars II (ACC II) rule on a vote of 246-164, with 35 Democrats voting in favor. This followed votes on April 30 approving H.J. Res. 87 to revoke the Advanced Clean Trucks (ACT) rule by a vote of 231-191 (including 13 Democrat yes votes) and H.J. Res. 89 to revoke the Heavy-Duty Omnibus NOx Emissions (HDO) rule by a vote of 225-196 (including 10 Democrat yes votes).
Three weeks later, on May 22, the U.S. Senate approved the revocation of the EPA waivers of ACC II (by a 51-44 vote), ACT (51-45), and HDO (49-46).
The resolutions now go before President Trump for his consideration and signature. He has stated he would sign them.
After the Senate roll calls revoking ACT and HDO, ATD President Jacqueline Gelb released the following statement:
“The importance of these critical votes cannot be overstated. California’s onerous regulations have upended the trucking industry in CARB states through rationing of diesel trucks and forcing adoption of zero-emission technologies that don’t meet the performance and durability requirements for the industry. The industry has made great strides toward cleaner emissions, and without these mandates, it will continue to develop new technologies that reduce emissions and support the movement of our nation’s freight.”
I wish to extend my appreciation to all my fellow truck dealers and their key staff who contacted their Members of Congress on these three resolutions. Without your dealer input directly into the Capitol, we would not have achieved our strong success. I also want to congratulate our legislative affairs team for their successful efforts on these matters. And a special thank you goes out to Sens. Deb Fischer (R-Nebras-
ka) and Markwayne Mullin (R-Oklahoma) for their leadership and efforts to be lead sponsors on and pass this pro-small business, pro-consumer legislation.
Frankly, it is events like our annual D.C. fly-in, in combination with hosting our Members of Congress at our dealerships, that provide the opportunity to build a grassroots network throughout the year on any number of issues that pop up impacting our businesses, employees, and customers.
Dealer visits with legislators on Capitol Hill are the key component of the Fly-In. ATD Legislative Affairs will set up your legislative meetings unless you prefer to schedule your own. Now that the revocation of ACT and HDO are on their way to the president, this year’s legislative priorities include:
• Repeal of the federal excise tax on heavy-duty trucks;
• Opposition to the vehicle “right to repair” legislation; and
• Support for catalytic converter anti-theft legislation. If you have attended previously, we look forward to having you back for our 2025 event. If you have never attended, we would welcome your participation as we reach out to our representatives in Congress and regulators to educate them on our issues. We have grown our fly-in ranks every year, and we look forward to welcoming you on board in June. If you have not signed up for this year’s fly-in, consider doing so for next year, or even hosting a Congressional dealer visit. Every bit helps.
Commercial Truck Sales Down 6.5% in Q1
Commercial truck sales declined yearover-year through the first quarter of 2025
By Patrick Manzi, NADA Chief Economist
Commercial truck sales declined year-over-year through the first quarter of 2025. Commercial truck sales totaled 105,640 through Q1 2025, a decline of 6.5% compared to the first quarter of 2024. Both medium- and heavy-duty truck sales posted declines. Medium-duty truck sales totaled 55,013 and heavy-duty truck sales totaled 50,627 in the first three months of the year, representing year-overyear declines of 3.8% and 9.4%, respectively.
According to ACT Research, preliminary net new orders for Class 8 trucks totaled 16,000 in March 2025, a decline of 8.3% year-over-year. Preliminary orders for Class 5-7 trucks also were down significantly in March 2025, ACT Research says. Orders for Class 5-7 trucks in March totaled 18,600 units, a decline of 33% year-over-year. Trade policy uncertainty and a cooling economic outlook were likely responsible for at least some of the declines on net orders for commercial trucks. High levels of uncertainty stemming from daily changes in trade policies are making it challenging for trucking fleets to make investment decisions for new equipment.
The 25% tariffs on imported steel and aluminum as well as tariffs on imports from the U.S. and Canada will impact new-truck pricing and sales. While there are currently no tariffs on USMCA compliant vehicles from Canada and Mexico, we are certain there will be impacts to commercial truck pricing from the tariffs on parts. As with light-vehicles, components for commercial trucks can cross the Canadian and Mexican borders several times before a final vehicle is delivered to the U.S. It is challenging to estimate the exact impact that these tariffs will have on truck pricing, but OEMs have already said they will be passing on at least some
of the costs to consumers through higher prices, according to Transport Topics. Before the tariffs, commercial truck demand had weakened since the start of the year. Given the uncertainty of the current sales environment and the longer the tariffs remain in place, sales forecasts are likely to be reduced further.
Truck Retail Sales Outlook Cloudy for Rest of 2025 Carriers Hold Out Hope as Others Turn to Used Market
By Keiron Greenhalgh, Transport Topics
Uncertainty continues to cloud the retail sales and orders outlook for truck makers for the rest of 2025, according to observers.
When demand will pick up is the million-dollar question, International Motors CEO Mathias Carlbaum said during a reporter roundtable April 29.
“How do you polish this crystal ball?” he asked. Clarity on the demand picture will emerge over the next two or three months, he noted, saying International has seen cancellations, which is something the truck maker has not witnessed in four or five years. “We are close to the bottom. The question is how long the bottom lasts. There will be zero pre-buy.”
Recent uncertainty surrounding trade tariffs and the stricter emissions legislation was leading U.S. customers to adopt a “wait-and-see approach,” Volvo Group, the parent company of Volvo Trucks North America and Mack Trucks, said when releasing its first-quarter earnings April 23.
The parent company of Kenworth and Peterbilt is awaiting greater clarity with a positive mindset.
“In the second half of the year, we anticipate increased customer demand as policy and emissions regulations become more stable,” Paccar CEO Preston Feight said during the company’s Q1 earnings call.
Some fleets cannot wait, however, as aging, inefficient rolling stock tends to spend more time at the side of the road and can take a hefty bite out of margins. The used truck market is benefiting as a result.
Model year 2023 sleeper tractors averaged $96,735 at auction in April, some $16,472 or 20.5% higher than in March, according to Chris Visser, director of specialty vehicles at J.D. Power.
“If you were bidding for sleeper tractors at auctions in April, you probably noticed fewer trucks available. And if you were looking for trucks with low mileage, so was everyone else, judging by hammer prices for those trucks,” Visser said in a post on LinkedIn.
Robert Brown of Bot Auto breaks down the state of autonomous trucking today, and where it’s headed.
“Overall, supply was tighter and pricing was higher, as end users traded out of their older trucks to take advantage of what could be the last of pre-tariff, pull-ahead freight activity,” he added.
And when it comes to retail sales, some OEMs are better positioned than others, according to Melius Research founding partner Rob Wertheimer.
“Tariffs are clouding most everything else this year,” he wrote in an April 29 research note, noting that Kenworth and Peterbilt were likely to introduce price hikes in the second quarter.
“The Trump administration recently launched a Section 232 investigation into truck production and supply chain, which could provide tariff relief, and possibly a relative benefit to Paccar, given higher percentage of production in Mexico from competitors Daimler and Traton (with Volvo having planned to move production to Mexico as well),” Wertheimer added.
However, the analyst warned that all bets are off on truck demand if there is a recession as a result of the tariffs and other macroeconomic concerns.
Meanwhile, carrier executives remain more optimistic than might be expected, according to the latest Bloomberg-Truckstop survey of owner-operators and small fleet carriers.
Some 65% believe that tariffs may hinder the industry, but a majority remain optimistic about short-term, with 62% expecting sustained demand and 55% bullish about rate growth.
“Carriers aren’t turning a blind eye to the potential volatility that could arise from tariffs,” said Lee Klaskow, senior freight transportation and logistics analyst at Bloomberg Intelligence.
“However, most carriers believe rates and volumes still have some room to grow, and many believe that the worst of the challenging freight conditions may be over.”
Demand for Late-Model Used Trucks Surges Despite Inventory Declines
By Pamela DeLeon, Senior Editor, Commercial Carrier Journal
There’s been sharp year-over-year inventory declines across both used trucks and trailers, particularly in sleeper trucks and reefer trailers in April, according to a report from Sandhills Global.
The report noted that the used heavy-duty market showed mixed signals. Inventory levels remained largely flat on a month-over-month basis, increasing 3.75%, yet showed a steep -23.05% year-over-year decline. Notably, used sleeper trucks had the most significant changes, with the highest month-overmonth inventory increase at 4.07%, but also the sharpest yearover-year drop at -39.01%, signaling a rapid shift in supply dynamics.
Asking values were relatively stable in the used heavy-duty segment, increasing slightly at 0.2% month-over-month but down -3.16% year-over-year. Used day cabs were the weakest performers, experiencing both the largest month-over-month decrease in asking values (-2.2%) and the steepest year-overyear decline at -4.55%. Meanwhile, auction values were similarly steady, up 1.57% month-over-month but down -2.2% year-over-year. Used sleeper trucks saw a notable month-overmonth auction value increase at 5.29%, while the used day cabs experienced a year-over-year auction value decline of -8.24%.
“New truck sales have been stagnant, with pre-buy behavior moving from 2025 to 2026,” said Truck Paper manager Scott Lubischer. “OEMs recognize this, and they have been cutting back production. Given the uncertainty clouding the global economy, many buyers are stalling, but inventory levels are stable, and deals are still being made.”
Trailer market
The used semi-trailer market showed slightly more stability. Inventory levels rose by 1.03% month-over-month but dropped -13.39% year-over-year. Reefer trailers stood out, indicating the largest month-over-month inventory increase at 4.37%, but also the most substantial year-over-year decrease at -18.61%, highlighting a sharp turnaround in supply levels.
Asking values in the used semi-trailer market trended upward at 1.14% month-over-month but decreased -4.9% yearover-year. Reefer trailers again were distinct, having the largest month-over-month increase in asking values at 2.98%, but also the greatest year-over-year decline at -5.81%. Auction values showed growth, increasing 1.4% month-over-month and 0.54% year-over-year. Used drop deck trailers led the month-overmonth auction value gains at 2.87%, whereas reefer trailers experienced the steepest year-over-year auction value decrease at -6.46%.
What’s driving buyer decisions in the used market?
Buyers competed for limited supply in the used truck market as fewer trucks were available in April, but prices rose anyway, especially for newer trucks with low mileage, according to J.D. Power’s May guidelines market report.
“If you were bidding for sleeper tractors at auctions in April, you probably noticed fewer trucks available. And if you were looking for trucks with low mileage, so was everyone else judging by hammer prices for those trucks,” said Chris Visser, J.D. Power director of specialty vehicles. “Overall, supply was tight-
er, and pricing was higher, as end users traded out of their older trucks to take advantage of what could be the last of pre-tariff, pull-ahead freight activity.”
In March, auction volume and pricing used Class 8 trucks started off strong, but in April the number of trucks sold dropped while prices kept rising.
When looking at late-model sleeper tractors, J.D. Power’s average pricing indicated that 2023 models jumped the most in price, up over 20.5%, while 2022, 2020 and 2019 saw smaller increases (from 0.5% to 5.9%). Only 2021 models (-6.7%) dropped in price.
At auctions in April, selling prices for the 4- to 6-year-old trucks sold for 1.3% more than in March and were 30.3% more expensive than they were in April 2024. Compared to pre-pandemic pricing in 2018, they are 19.4% higher in dollar terms, but -6% lower when adjusted for inflation.
Trucks with less than 300,000 miles sold for especially high prices, J.D. Power reported, showing that buyers want lightly used trucks. The demand for newer, low-mileage trucks likely drove the price jump for 2023 models.
CCJ parent company Fusable’s used commercial truck report for April also noted similar sentiments. Rusty Freeman, senior product manager for Price Digests and Central Analysis Bureau in Fusable’s Risk Intelligence division, said that the market is recently showing signs of normalization after years of high volatility.
In April 2025, the used commercial truck market saw widespread price increases across nearly all segments, breaking away from usual spring patterns, according to Price Digests analysts. While certain subtypes posted particularly strong month-overmonth gains, most of the market saw a consistent moderate upward movement in value. Model year 2021 units led at +12.8%, followed by 2022 (+9.4%) and 2023 (+9.0%), reflecting an ongoing demand for newer used trucks as new truck production remains constrained.
However, on a year-over-year basis, all model years still registered declines, with 2022 experiencing the steepest drop at -15.2%. In contrast, the newest models (2023 and 2024) held their value better, which analysts said underscores a clear buyer preference for late-model, low-mileage trucks.
Strategic fleet behavior is shaping demand, as buyers increasingly prioritize newer, lower-mileage and specialized vehicles, Freeman said. Price Digests’ data indicated that 2024 models and certain subtypes (such as paratransit vans and cabover tractors) saw modest year-over-year gains or stability, reflecting ongoing demand for late-model, purpose-built inventory.
Tariff uncertainty remains a wildcard
J.D. Power noted that the temporary rollback of tariffs on Chinese imports may help counter the recent slump. However, a 90day trade truce between the U.S. and China doesn’t offer certainty for longer-term planning, keeping new truck buyers cautious. Despite uncertainty, aging trucks still need replacement, Viss-
er said, and this is driving improved conditions at auctions and dealerships, especially for low-mileage trucks that serve as viable new truck alternatives.
Looking ahead, Freeman said Price Digests anticipates continued normalization as inventories and new production levels return to historical norms. Demand will likely remain strongest for late-model equipment, especially as fleets seek to modernize and comply with regulations.
Freeman added that any developments around tariffs or regulatory policies will be key factors to monitor, as they could shift buyer interest between new and used markets and affect price trends.
California Agrees to Officially Repeal Advanced Clean Fleets Rule
By Matt Cole , Overdrive
While the California Air Resources Board (CARB) effectively waved the white flag on its Advanced Clean Fleets (ACF) rule in January when it withdrew its request for a waiver with the U.S. Environmental Protection Agency (EPA), court filings reveal that CARB intends to formally repeal the regulation.
The court documents were filed in a lawsuit from a coalition of 17 states, led by Nebraska and the Nebraska Trucking Association, who sued to block the ACF rule.
California in November 2023 submitted its ACF request to the EPA, which would have required certain fleets of size -- and all port drayage operations -- in the state to transition to zero-emission vehicles beginning last year, and that the entire fleet be fully zero-emissions between 2035 and 2042, depending on a variety of factors. ACF also required all new heavy trucks sold in California be zero-emissions by 2036.
According to the court filing, CARB Executive Officer Steven Cliff agreed that CARB staff would present a proposal to repeal the High-Priority Fleet (fleets with $50 million or more in gross annual revenues or operate 50 or more trucks) and the Drayage Fleet requirements of the rule. The proposal will be presented to the Board at a meeting held no later than Oct. 31, 2025. If the repeal is approved, CARB staff will submit that rulemaking action to California’s Office of Administrative Law (OAL) for approval no later than August 31, 2026.
Cliff and California Attorney General Rob Bonta also agreed that “they will not take any enforcement action under the High Priority Fleet or Drayage Requirements for conduct during the period beginning with the earliest effective date of any of these requirements (November 1, 2023) and ending when CARB or OAL ... takes final action on the CARB rulemaking described herein.”
Additionally, Cliff and Bonta will not enforce the ACF’s regulation requiring 100% zero-emission-vehicle sales in the medium- and heavy-duty categories beginning with model year 2036 until CARB obtains a Clean Air Act preemption waiver from EPA for that regulatory requirement.
Congress Revokes CARB Waivers
Scott Dube, Partner at McGovern
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This month saw great victories for franchised dealers across the country, but especially in states like Massachusetts which follow the emissions rules of the California Air Resources Board, when the U.S. House and Senate, under the Congressional Review Act, revoked the EPA waivers issued to CARB for its Advanced Clean Cars II (ACC II), Advanced Clean Trucks (ACT), and Heavy-Duty Omnibus NOx Emissions (HDO) rules, which were designed to ultimately ban gas-powered and hybrid cars and diesel trucks.
Now we await the signature of President Trump on all three resolutions. Once that occurs, we can expect the usual litigation from California, even though the CRA law does not allow for judicial challenges to such Congressional revocations. Crafty lawyers always find a way to sue.
Successful action on the CRA resolutions is the result of dealer communications to Members of Congress along with the advocacy efforts of ATAEs and NADA/ATD staff. I want to thank everyone who chipped in. Our grassroots efforts, built up over the years, pay off in times like these.
Unfortunately, challenges to our industry continue, both from legislators and regulators in D.C. as well as from our very own manufacturers. Whether it is tariffs, tax policy, or manufacturers pursuing direct sales of new EVs, we must always remain vigilant and active in the political process. In September, we will have our annual Washington Conference. If you have not attended in the past, think about joining us this year.
Also, NADA PAC is a great way to contribute to NADA’s political fundraising from the comfort of your own office or home. Go to https://www.nada.org/nadapac to give today. Any and all efforts are greatly appreciated.
NADA
Chairman Tom Castriota’s Column
Wow, the past few months have been quite interesting! Keeping up with all the challenges shaping the auto industry has been daunting. I genuinely appreciate the resilience, strength, and positivity that our NADA Board and dealers embody. We have faced uncertainty and tough times before, and I know we will continue to weather any storm that comes our way! I want
to thank the board, the ATAEs, and especially Mike Stanton and the NADA staff for all that NADA has accomplished since New Orleans.
NADA began the year (besides the snow in New Orleans) with a favorable court ruling on January 27, 2025, vacating the FTC’s CARS rule, only to face the Scout/VW and Honda/Sony actions that would prompt NADA to support state franchise laws that protect dealers and their customers. Then the discussion and implementation of the president’s tariffs arrived.
I really do not need to explain in depth the effects this has had on our OEMs and franchises. Like you, I have had many discussions with those affected by the actions and their consequences. Let me assure you, NADA has been on top of the tariff situation since President Trump publicly supported them. We have been in constant contact with dealers, OEMs, other significant auto industry groups, and members of the Administration and Congress. We have also communicated with our membership and the media to educate them on our perspective.
While NADA acknowledges the underlying concepts related to the tariffs, as a trade association, it is our responsibility to ensure that the Administration is adequately informed regarding the implications of the decisions being made. NADA aims to ensure that the Administration’s choices are well-informed.
In pursuit of this objective, NADA has discussed this with officials from the White House, the Office of the U.S. Trade Representative, the Department of the Treasury, the Department of Commerce, and the Small Business Administration. NADA has also requested meetings with the Office of Management and Budget and the National Economic Council. These meetings aim to ensure that the perspectives of America’s franchised new car dealers are represented in Washington and that policymakers know the implications of buying and selling automobiles.
Here are a few of the messages that NADA has presented to our policymakers:
• The average monthly new car payment is $729; increasing these payments will surely be out of reach for the average American family.
• The average cost of a new vehicle would increase from $2,000 to $12,000 (depending on the model).
• The affected sales of new vehicles could be reduced by 1.1 million units.
• We have partnered with other key auto industry groups to send a message to the Administration.
• NADA will continue its efforts to educate Washington on tariff impacts and keep membership informed of its work. Finally, I would like to highlight in my notes the passage of the Congressional Review Act resolutions in both the House and the Senate, which currently awaits the President’s signature to formalize the legislation. Among other benefits, this
legislation effectively outlaws the California ZEV rule, which was designed to ban internal combustion engine vehicles. I want to thank the dealers, ATAEs, and staff for their hard work in presenting our concerns to Congress and their unwavering support, along with months of tireless efforts to convey the CRA message to our legislators and federal regulators.
DOJ AntiCompetitive Regulations Task Force
Recently, the U.S. Department of Justice put out a request for comments regarding anti-competitive laws and regulations at both the state and federal level. While the request for comments did not specifically mention state dealer franchise laws, several anonymous commentors made broadside attacks against the franchise system, and Scout Motors filed a comment (found at https://www. regulations.gov/ comment/ATR-20250001-0182) opposing state motor vehicle franchise laws. NADA submitted the following comments defending state franchise laws:
As this year’s chairman, I represent your interests and am the voice of NADA, which serves you and all the dealers. Please contact me with any questions, concerns, or ideas. I look forward to hearing from you (really)!
