New England Automotive Report June 2017

NEAR0617.qxp_NEAR1014 5/16/17 1:09 PM Page 1

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Serving the New England Collision and Mechanical Repair Industry

June 2017 U.S.A. $5.95

www.grecopublishing.com

NEAR0617.qxp_NEAR1014 5/16/17 1:09 PM Page 2

2 June 2017

New England Automotive Report

NEAR0617.qxp_NEAR1014 5/16/17 1:09 PM Page 3

NEAR0617.qxp_NEAR1014 5/16/17 1:09 PM Page 4

4 June 2017

New England Automotive Report

NEAR0617.qxp_NEAR1014 5/16/17 1:09 PM Page 5

New England Automotive Report

June 2017 5

NEAR0617.qxp_NEAR1014 5/16/17 1:09 PM Page 6

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 7

June 2017 • Volume 15, No. 6

CONTENTS

DEPARTMENTS VICE PRESIDENT’S MESSAGE by Adam Ioakim 8 | Are You Secure?

LOCAL NEWS by Joel Gausten

COVER STORY

18 | MA SkillsUSA: A Glimpse at the Techs of Tomorrow

NATIONAL NEWS by Joel Gausten 22 | National “Who Pays for What?” Survey Takes on Aluminum

TECHNICAL FEATURE by Larry Montanez III, CDA

37

THE COUNTRYWIDE

27 | Thoughts on Rekeying Estimates: Part 2 of 2

CONNECTION:

LEGAL PERSPECTIVE by James Castleman, Esq.

AASP NATIONAL TOUCHES DOWN IN BOSTON

31 | What Can an Insurer Put in Their Referral Shop Contracts?

ASK MIKE 42 | “How Could Getting Involved in OEM Certification Benefit a Body Shop?”

ALSO THIS ISSUE 10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR 13 | TRAINING OPPORTUNITIES: I-CAR CALENDAR OF EVENTS 14 | AASP/MA SPONSOR 15 | 2017 AASP/MA ANNUAL GOLF OUTING INFO 46 | AASP/MA MEMBERSHIP APPLICATION 49 | AASP/MA CLASSIFIED FORM 50 | FOR SALE 50 | INDEX OF ADVERTISERS

by Joel Gausten

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 8

VICE PRESIDENT’S MESSAGE

ARE YOU SECURE? ADAM IOAKIM

Not too long ago, the national collision repair industry was up in arms over the concept of insurer-mandated parts procurement programs like PartsTrader. For many, this was seen as something that took the choice of vendor out of shops’ hands in favor of racing to the bottom to find the cheapest price for a part. Now, a potentially greater problem is gearing up to hit our profession.

Set for full implementation in April 2018, CCC’s new Secure Share network (cccsecureshare.com) will come with a $0.50-per-estimate fee for vendors to receive BMS data.

Additionally, the user agreement for the system has some very interesting language that is sure to be of interest to shops and vendors alike. Here are some samples:

BY AGREEING TO THIS ARBITRATION PROVISION, THE PARTIES UNDERSTAND THAT THEY ARE WAIVING ANY RIGHT TO SUE IN COURT AND HAVE A JURY TRIAL AS WELL AS ANY RIGHT TO PARTICIPATE IN A CLASS ACTION OR IN CLASS ACTION PROCEEDINGS. How big will Secure Share be? Well, some industry experts are claiming that the estimated revenue generation to CCC from the new BMS business model could cost the industry as much as $100 million. That is not a typo, folks.

Not surprisingly, various industry leaders are looking to connect with CCC to get a true glimpse into the company’s intentions with Secure Share and their plans for users moving forward. At the time of this writing, the best insight available was in the company’s responses to questions submitted by the Collision Industry Conference (CIC) Open Systems, Data Access and Sharing Task Force.

CIC’s inquiries concerned how the program works, data rights and agreement terms. CCC’s answers were distributed at CIC’s April meeting in Pittsburgh and are available in full online at tinyurl.com/l22ze6w courtesy of Repairer Driven News. Readers are strongly encouraged to review this document.

Terms and Termination. CCC may terminate this Agreement and revoke access to Account Information for any reason, upon notice to you.

Choice of Law; Binding Arbitration; Class Action. This Agreement does not permit class arbitration or any claims brought as a plaintiff or class member in any class or representative arbitration proceeding. No arbitration will be combined with another without the prior written consent of all parties to all affected arbitrations or proceedings.

N

E

W

E

N

G

L

A

N

D

AUT M TIVE STAFF

AASP/MA EXECUTIVE COMMITTEE PRESIDENT

PUBLISHER

CREATIVE DIRECTOR

Thomas Greco (thomas@grecopublishing.com)

Lea Velocci (lea@grecopublishing.com)

SALES DIRECTOR

EDITORIAL ASSISTANT

VICE PRESIDENT

Alicia Figurelli (alicia@grecopublishing.com)

Nick Fernandes (nick@grecopublishing.com)

Adam Ioakim

EDITORIAL DIRECTOR

PRODUCTION

SECRETARY

Joel Gausten (joel@grecopublishing.com)

Donna Greco (donna@grecopublishing.com)

Molly Brodeur

Ray Belsito, Jr. TREASURER

PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963

Kevin Gallerani IMMEDIATE PAST PRESIDENT Paul Hendricks

AASP/MA STATEWIDE DIRECTORS COLLISION DIRECTOR Rick Starbard www.grecopublishing.com New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright © 2017 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com

AASP/MA DIRECTORS Darlene Andrade Matthew Ciaschini

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Gary Cloutier

AASP/MA EXECUTIVE DIRECTOR

Alex Falzone

Jillian M. Bukhenik 12 Post Office Square, 6th Floor Boston, MA 02109 Phone: (617) 574-0741 Fax: (617) 695-0173 Email: jzywien@aaspma.org

Joshua Fuller Kevin Kyes Peter Langone

WWW.AASPMA.ORG

Frank Patterson Mike Penacho

8 June 2017

New England Automotive Report

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 9

While Secure Share’s ultimate impact on the industry remains to be seen, the lesson that every collision repair professional can already learn from this situation is to always review the contracts presented to you before you sign them. Above that, get your lawyer to review them as well. You need to be fully aware of how your data is used, who gets to see this information, how easy it is to walk away from an agreement and how much this deal will cost you in the long run. If you don’t, you can easily be taken advantage of by outside parties – including insurers that could potentially use these agreements as a way to further infiltrate your business.

You can expect a lot more on Secure Share in the months and issues of NEAR to come. But for now, make the commitment to read and fully understand the things you sign. You work too hard at your business to simply give away the store – and your rights – without knowing it.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

ADAM IOAKIM is the co-owner of Hogan & Van

Auto Body in Medford, MA. He can be reached at (781) 436-0366 or adam@hoganandvan.com.

New England Automotive Report

June 2017 9

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 10

A MESSAGE FROM THE EXECUTIVE DIRECTOR

AASP/MA ACROSS THE NATION JILLIAN BUKHENIK

Dear Members, Last month, AASP/MA hosted AASP National at our office in downtown Boston.

As you may be aware, AASP National hosts two meetings a year; one takes place at SEMA, and the other moves around to 10 state affiliates.

As an affiliate of AASP, AASP/MA members are eligible to receive exclusive member benefit discounts for information providers like Mitchell 1; website and internet marketing solutions like Autoshop Solutions, Inc.; and sales, marketing and customer service solutions like eMarketing Sherpas. Affiliates also make up AASP National’s Board of Directors and help drive the organization by focusing on issues of industry importance.

AASP/MA has a voice on legislation, regulations and industry issues at a national level. We have the unique opportunity to learn and network with some of the most progressive state/regional association professionals in the industry. It remains important for us to participate in national meetings so we learn from fellow industry leaders and help to continue building the success of the auto repair industry by leveraging our collective voice.

In addition to our meeting with National, we have also been busy meeting with legislators regarding our Labor Rate legislation. The Labor Rate, or lack thereof, continues to be an issue for our members and a priority for the association. We have met with several legislators, including our House and Senate sponsors, Chairmen of the Joint Committee of Financial Services and other supporters to continue to stress the importance of passing this legislation. As you may recall, our legislation was passed by the Senate in the last session for the first time in our history. We look forward to reporting to members about the upcoming hearing on this matter.

AASP/MA has recently met with the Attorney General’s Office relative to consumer protection matters such as pre- and post-repair scanning and total losses. As shop owners, you often become your consumers’ advocate throughout the repair process. It remains imperative that the association continues to support those efforts and reach out to the appropriate offices to further educate regulators. The AG and her staff have been sensitive to these issues and we look forward to our continued work with them on these important matters.

At the time of this writing, AASP/MA is preparing to attend the Auto Damage Appraiser Licensing Board (ADALB) meeting and hearing following their recently issued order to show cause. We are confident that our member’s complaint and the Board’s action will have a positive result on behalf of the industry. Please look to future NEAR articles, your AASP/MA member news alerts and Damage Reports.

Your association continues to advocate on matters that affect your business daily. We continue to educate legislators and regulators about our industry and the need for change. If you are not a member of the association, what are you waiting for? We are the only statewide organization fighting on your behalf. We are reporting REAL results to our members and positively impacting the industry in Massachusetts. Please join us today at aaspma.org. Call our office and find out more about what we are doing for your business and how you can help build the success of the auto repair industry.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Sincerely,

Jillian Bukhenik

AASP/MA EXECUTIVE DIRECTOR JILLIAN BUKHENIK (formerly Jillian Zywien) has been a senior account executive at Lynch Associates for over eight years.

She can be reached at (617) 574-0741 or via email at jzywien@aaspma.org.

10 June 2017

New England Automotive Report

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 11

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 12

12 June 2017

New England Automotive Report

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 13

in Massachusetts June 7, 2017 Vehicle Technology Trends & Diagnostics Overview Enterprise Rent-A-Car (Burlington, MA) June 13, 2017 Replacement of Steel Unitized Structures Fuller Auto Body (Auburn, MA) June 15, 2017 Sectioning of Steel Unitized Structures Enterprise Rent-A-Car (Burlington, MA) June 28, 2017 Understanding the Cycle Time Process Fuller Auto Body (Auburn, MA) June 29, 2017 Vehicle Technology Trends & Diagnostics Overview Assabet Valley Regional Technical High School (Marlborough, MA)

For more information, visit i-car.com

Wheel Collision Center

Excellence in Wheel Sales and Repair

Patent assures

100% WHEEL INTEGRITY • From $75/wheel • Sales/Exchange • Superior Workmanship

• Tested Process • Guaranteed Lifetime Warranty!

NEW 2017

ONLINE OEM WHEEL CATALOG Stocking THOUSANDS of refinished wheels!

7286 Penn Drive, Bath, PA 18014

www.wheelcollision.com

1.800.292.RIMS (7467)

New England Automotive Report

June 2017

13

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 14

AASP/MA ASKS YOU TO PLEASE SUPPORT AASP/MA SUSTAINING SPONSOR PPG!

Contact AASP/MA at (617) 574-0741 / jzywien@aaspma.org

for information on additional AASP/MA sponsorship opportunities!

14 June 2017

New England Automotive Report

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 15

2017 AASP/MA ANNUAl GOlF OUTiNG

Wednesday, July 19, 2017 Blackstone National Golf Club

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Pricing:

Single Golfer: $150 Foursome: $600 Dinner Only: $60

227 Putnam Hill Rd., Sutton, MA 01590 11:30am: Lunch for Golfers* ONLY 12pm: Shotgun Start 5pm: Dinner & Award Ceremony

(Pricing includes golf, cart and greens fees, lunch and dinner!)

*Collared shirts only. No regular or colored jeans.

No cutoff or short shorts. No metal spikes.

TO REGISTER, VISIT WWW.AASPMA.ORG

SPONSORSHiP OPPORTUNiTiES:

THAN KS TO OUR

SPON SORS !

HOLE SPONSORSHIPS: Hole in One Sponsor: $1,500 (2 Available) • Hole Sponsor: $200 (18 Available) COMPETITION HOLE SPONSORS: Closest to the Pin: $500 (1 Available) • Longest Drive: $500 (1 Available)

AddiTiONAl SPONSORSHiPS:

Tournament Sponsor: $2,500 (1 Available) Raffle Prize Sponsor: $1,500 (1 Available) Team Prize Sponsor: $1,000 (1 Available)

Lunch Sponsor: $500 (1 Available) Dinner Sponsor: $500 (2 Available)

CONTACT COLLEEN KANE AT (617) 574-0741 or via email at ckane@aaspma.org for more information.

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 16

THERE HAS NEVER BEEN A BETTER WAY TO BUY THE WORLD’S BEST ENGINEERED PARTS. THEY’RE CALLED “ORIGINAL BMW PARTS” FOR GOOD REASON. FOR UNCOMPROMISING PRECISION AND INCOMPARABLE QUALITY, YOUR BMW CENTER IS YOUR ONE-STOP SHOP FOR EVERYTHING BMW.

For Original BMW Parts, contact one of these authorized BMW centers: BMW of West Springfield 1712 Riverdale St. West Springfield, MA 01089 PH: 413-746-1722 FAX: 413-304-9009 bmwwestspringfield.com

16 June 2017

New Country BMW 1 Weston Park Ave. Hartford, CT 06120 PH: 860-240-7881 FAX: 860-240-7873 newcountrybmw.com

New England Automotive Report

BMW of Stratham 71 Portsmouth Avenue Stratham, NH 03885 PH: 603-772-0000 FAX: 603-772-9436 bmwofstratham.com

BMW of Warwick 1515 Bald Hill Rd. Warwick, RI 02886 PH: 401-821-1510 FAX: 401-823-0530 bmwofwarwick.com

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 17

Original BMW Parts

bmwusa.com

BMW of Sudbury Wholesale Parts 68 Old County Road Sudbury, Ma. 01776 PH: 800-338-3198 FAX: 508-881-7578 bmwofsudbury.com

BMW of Cape Cod 500 Yarmouth Road Hyannis, MA 02601 PH: 508-815-5500 FAX: 508-790-3551 bmwofcapecod.com

The Ultimate Driving Machine®

Wagner BMW of Shrewsbury 770 Boston Turnpike Shrewsbury, MA 01545-3202 PH: 866-438-3997 FAX: 508-925-2291 wagnerbmwofshrewsbury.com

New England Automotive Report

June 2017 17

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 18

[LOCAL] NEWS by Joel Gausten

MA SkillsUSA:

A Glimpse at the Techs of Tomorrow

O AASP/MA President Molly Brodeur interviewed student competitors at SkillsUSA.

Left to right: SkillsUSA judge JR Force (Repairs Unlimited), SkillsUSA Automotive Refinishing Technology Chairman Jim Marshall (Marshall’s Auto Body), SkillsUSA Collision Repair Technology Chairman Ken Robbins (BASF)

SkillsUSA judge Seth Elie (right, Acme Collision) with SkillsUSA Series Director Jeremy Guay 18 June 2017

New England Automotive Report

n April 28, hopeful collision repair and refinishing students from throughout the Commonwealth gathered at Blackstone Valley Regional Vocational Technical High School in Upton for the annual Massachusetts SkillsUSA Championships. Shawsheen Valley Tech student Maren Williams, who was recently profiled by New England Automotive Report for taking the Gold in the Automotive Refinishing Technology category in 2016 (“Billerica Student Hits the National Scene,” NEAR January 2017), again took the top prize in her division. She was followed by Silver winner Elyssa Rodriguez (Roger L. Putnam Vocational Technical Academy) and Bronze winner Nigel Fialho (Greater New Bedford Regional Vocational Technical High School). David Fors, a student at Montachusett Regional Vocational Technical School, took home the top prize in the Collision Repair Technology category, followed by Silver winner Devon Doiron (Westfield Technical Academy) and Bronze winner Sophie Pigeon (Blackstone Valley Regional Vocational Technical High School).

Williams and Fors will move on to compete at the 53rd annual National Leadership and Skills Conference (NLSC), held June 19-23 in Louisville, KY. This year’s group of volunteer industry judges included the following: Collision Repair Technology - Molly Brodeur (AASP/MA president, Al Brodeur’s Auto Body), JR Force (Repairs Unlimited), Bob Levy (Don Kennett Auto Body Supplies), Seth Elie (Acme Collision), Rich Sauro (Adesa Auto Auction), Greg Bedrosian (MAPFRE Insurance); Automotive Refinishing Technology - Ashley Golden (BASF), Michael Levy (Don Kennett Auto Body Supplies), Steve Vanderbeek (BASF) and Dan Gunter (BASF).

Supplies were graciously donated by BASF Corporation, Don Kennett Inc., 3M Automotive and Fiberglass-Evercoat. The Automotive Refinishing Technology section was chaired by Ken Robbins of BASF, while AASP/MA member Jim Marshall (Marshall’s Auto Body, Billerica) stepped in for longtime SkillsUSA volunteer Tom Ricci (Body & Paint Center, Hudson) to chair the Collision Repair Technology section for 2017.

Marshall, who serves on the Advisory Committee for Shawsheen Tech, was blown away

by Williams’ second victory in a row.

“She is a superstar! She really has a lot of confidence and does a good job.”

He was also impressed by the talents exhibited by the other competitors.

“The students this year were better prepared as far as having the proper safety equipment and

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 19

training to be ready for this competition.

Everybody was really on target.”

After three years in the industry, 26-year-old Michael Levy signed on to judge at SkillsUSA for the first time to offer hands-on encouragement and support to younger repairers.

“It’s good for the kids to see the younger faces as well as the older people who have been in the trade for a long time. The kids need to stay positive about the industry and get rid of all the negativity they’re hearing.

I’ve been doing it for three years, and I like it. I get up every day and enjoy doing what I do. These kids obviously enjoy doing what they do; that’s why they continue to move on in the SkillsUSA competition.”

For returning judge Golden, taking the time to participate in SkillsUSA for a second year is an opportunity to show tomorrow’s repair professionals that the industry cares about them.

“BASF has been involved with SkillsUSA for countless years now. The number one thing that everyone in this industry is looking for is talent; investing in [competitors] when they’re younger and getting them excited to be in this industry is so important.”

For more information on Massachusetts SkillsUSA, visit maskillsusa.org. More information on the national SkillsUSA organization is available at skillsusa.org.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Shawsheen Valley student Maren Williams, who was profiled in our January 2017 issue, once again took the Gold for refinishing at this year’s event.

SkillsUSA judge Greg Bedrosian (MAPFRE Insurance)

Left to right: Bob Levy (Don Kennett, Inc.), Michael Levy (Don Kennett, Inc.), Ashley Golden (BASF), Dan Gunter (BASF), Steve Vanderbeek (BASF)

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 20

Prompt &  Dependable Delivery

Experienced and Professional Parts Team

Ask about our Competitive Prices

Fax Line: 508.699.4761 Parts Hours: Mon-Sat: 7:30-5:00

Fax Line: 508.673.6338 Parts Hours: Mon-Sat: 7:30-5:00

Fax Line: 508.316.8397 Parts Hours: Mon-Sat: 7:30-5:00

www.firstfordma.com

www.firstchryslerma.com

Parts Line:

774.888.6666

Parts Line:

508.699.4700

292 William S. Canning Blvd.

Fall River, MA 02721

270 East Washington St. North Attleboro, MA 02760

www.firsthyundai.com 20 June 2017

New England Automotive Report

Parts Line:

508.316.8410

280 East Washington St. North Attleboro, MA 02760

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 21

GENUINE NISSAN PARTS

MAKE ALL THE DIFFERENCE.

Only Genuine Nissan Parts deliver the fit, reliability, and performance to meet your shop’s collision repair needs. So keep it original, and keep it real with Genuine Nissan Parts.

Contact these Nissan dealers for all your parts needs: Kelly Nissan of Beverly 420 Cabot Street (Route 1A) Beverly, MA 01915 Direct: 978-921-0146 Fax: 978-927-6823

Mastria Nissan 1305 New State Highway Raynham, MA 02767 Direct Toll Free: 800-248-2458 Direct Fax: 508-802-6118 E-mail: parts@mastrianissan.com Web: www.mastria.com

Kelly Nissan of Lynnfield 275 Broadway (Route 1) Lynnfield, MA 01940 Toll Free: 1-800-698-9280 Fax: 781-598-8026 E-mail: BSherman@Kellyauto.com

Kelly Nissan of Woburn 95 Cedar Street Woburn, MA 01801 Phone: 781-835-3510 Fax: 781-835-3580 E-mail: jtaddeo@kellyauto.com

www.kellyauto.com

New England Automotive Report

June 2017 21

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 22

[NATIONAL] NEWS by Joel Gausten

NATIONAL “WhO PAyS FOR WhAT?” SURvEy Takes on Aluminum Recently, New England Automotive Report welcomed industry veteran and legendary speaker Mike Anderson (Collision Advice) to our stable of contributors. While his new “Ask Mike” feature has already earned praise and positive feedback from readers in the Commonwealth and beyond, these same readers may not be aware that he and John Yoswick of CRASH Network have been working hard together to provide industry-wide proof that a shop is never “the only one” who charges for a certain procedure during the collision repair process.

Launched in 2015, the “Who Pays for What?” industry surveys are conducted quarterly by Anderson and Yoswick.

Available free to body shops, each of the four surveys a year have a specific focus (BODY, REFINISH, ALUMINUM and FRAME/MECHANICAL) covering nearly 100 different “not-included” operations. The surveys are designed to provide repairers with real market information on which insurers are paying for various procedures. Not surprisingly, the results point to the fact that whether or not a repair facility is reimbursed for a particular item depends (to a certain degree) on if the shop actually negotiates for it.

Although this can vary by insurance company, DRP status or region of the country, it is clear that while none of the procedures in the surveys are universally paid by insurers, none are universally rejected by insurers either.

In addition to using the results as a negotiation tool with insurers, shop owners have utilized the surveys as estimating training for their teams to open their eyes to operations they previously thought were included or had not been itemized on estimates. Perhaps most significantly, shops have reported using the results to better inform consumers who are told by insurers that the facility is inappropriately charging for something. Over 80 percent of respondents said they have used past survey results to improve their business.

“Shops tell us just taking the surveys can be a good reminder to estimators of ‘not-included’ operations,” Anderson says. “And the more shops that participate, the more accurate and relevant information we can provide back to the industry.”

Recently, Collision Advice and CRASH Network released the results of their 2016 “Aluminum & Shop 22 June 2017

New England Automotive Report

Supplies” survey, which took place last October. It asked body shops nationwide to report how often they are paid for a wide variety of shop supplies and repair operations.

The free report* based on the survey includes details on the billing and payment practices within the industry for 26 “not-included” repair procedures and shop supplies – and how respondents say the top eight auto insurers in the country responded to being charged. The industry members who answered the survey included more than a thousand independent, MSO, franchise and dealership shops, with repairers in Massachusetts, Connecticut, Arizona, Illinois, Montana, New York and Texas greatly increasing their participation in 2016. Here are some examples of the information found in this survey: Of those who negotiate for ROLOC disks, 21 percent are paid “always” or “most of the time,” with USAA being the Massachusetts-relevant insurer with the highest rate of always paying for it (13.1 percent).

Of those who negotiate for rust-proofing/body wax/cavity wax, 80 percent are paid “always” or “most of the time,” with Farmers being the Massachusetts-relevant insurer with the highest rate of always paying for it (58.6 percent).

Of those who negotiate for seam-sealer, 88 percent are paid “always” or “most of the time,” with USAA again being the Massachusetts-relevant insurer with the highest rate of always paying for it (70.2 percent). *Shops interested in downloading “2016 Aluminum & Shop Supplies” and the other current “Who Pays for What?” survey results (and signing up to take the next survey, which launches July 1) can do so by visiting crashnetwork.com/collisionadvice.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 23

New England Automotive Report

June 2017 23

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 24

Audi dealers strive to make you an Audi Genuine Parts fan •

Audi Parts professionals are your subject matter experts on collision parts, replacement components and mechanical items.

•

Many Audi dealers offer technical service support hotline access that can reduce your repair times and help you meet an on-time promised delivery.

•

Installing Audi Genuine Parts contributes toward improved cycle time that helps make both your customer and their insurance company happier.

•

Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers.

No other supplier comes close.

Helping you do business is our business. Order Audi Genuine Parts from these select dealers.

Audi Natick 549 Worcester Street Natick, MA 01760 www.bernardiaudi.com 800.247.3033 Fax: 508.651.6841

IRA Audi 105 Andover Street Danvers, MA 01923 800.774.8411 Parts Direct: 978.605.2182 email: pwalke@iramotorgroup.com www.iraaudi.com

Audi Shrewsbury 780 Boston Turnpike Shrewsbury, MA 01545 508.581.5880 Fax: 508.581.5880 email: parts@wagnermotors.com www.audishrewsbury.com

Hoffman Audi 700 Connecticut Blvd East Hartford, CT 06108 860.282.0191 Fax: 860.290.6355 www.hoffmanauto.com

Mattie Audi 80 William S. Canning Blvd.

Fall River, MA 02721 800.678.0914 Fax: 508.730.1283 www.mattieaudi.com

Audi Cape Cod 25 Falmouth Road (at the Hyannis Airport Rotary) Hyannis, MA 02601 PH: 508.815.5600 FAX: 508.568.9410 www.audicapecod.com

24 June 2017

New England Automotive Report

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 25

New England Automotive Report

June 2017

25

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 26

26 June 2017

New England Automotive Report

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 27

[TECHNICAL] FEATURE

by Larry Montanez III, CDA

ThOUGhTS ON REKEyING ESTIMATES:

PART 2 OF 2 In my article in last month’s issue (which you should have next to you as a reference as you read this one), I promised to provide a further discussion on the rekeying topic and offer a fix for your facility to stop working harder and start working smarter and more efficiently. Additionally, I said I would revisit the topic of photo estimating and explain why I thought this was a critical issue for our industry.

Regarding the “fix,” this will work for both Scenario 1 for Supplement 1 (after rekeying) and/or for your initial damage report. After negotiating with the appraiser, using your damage report (S1 or initial), you discover that the appraiser did not address all the operations and items you are charging the customer for. So, you will now need to call, email or fax in a request for a supplement. (Scenario 1 would be S2, and Scenario 3 would be S1). Now, here is how to not rekey.

In Scenario 1 or 3, you wrote an accurate damage report for the cost of repairs. For reasons we will not discuss, the appraiser did not reimburse the vehicle owner the full amount. So here are the steps to follow to not rekey: 1. Do not delete or write anything on your report.

2. Call for a supplement and do not delete or write anything on your report.

3. Call the vehicle owner to inform

them of the supplement. (In some states, you are required to obtain permission from the vehicle owner to charge more than the original estimate and for each additional increase in price or additional supplement.) Do not delete or write anything on your report.

4. Continue with the repairs. There is no reason to stop; do not delete or write anything on your report.

5. When the appraiser arrives, hand them the original damage report you handed them the last time they were there. Now, the scenario will go a little something like this: Larry = Damage Assessor John = Insurance Appraiser John: “Hi, Larry. I am here on a supplement for Mr. Smith’s vehicle.”

Larry: “Hi, John. Sure, I have the paperwork right here.”

Now, Larry hands John the original damage report. John quickly flips through the pages and looks perplexed.

John: “Larry, this is the original paperwork you gave me last time.

There are no S1s.”

Larry: “Yes, John. It is the same paperwork from the last time. Nothing has changed on repair methodologies or the costs and, well, you forgot some things the last time. You will need to add them now.”

John: “Like what? I don’t see any S1s.”

Larry: “John, I wrote an accurate cost of repairs for $8,134.56, and you wrote $5,478.21. That is a difference of $2,656.35.”

John: “Larry, I can do math, but what is the supplement for?”

Larry: “Glad you asked, John. I wrote an accurate final invoice for the cost to properly repair the vehicle. John, you left off $2,656.35. Now, if this were a difference of only $100 to $200, I would be discussing those few items to make up that amount, but $2,600 is a significant amount.”

John: “Whatever. But what is the supplement for? I do not know what it is for. How am I supposed to figure this out?”

Larry: “John, please understand that the $2,600 is YOUR problem, not mine. As it is YOUR error, not mine, now YOU will need to go line by line.

It is YOUR job, so do YOUR job and figure out what YOU left off the last time YOU were here. It is YOUR job to ensure the vehicle owner is fully reimbursed for the cost of repairs to restore their vehicle back to its preloss condition. So, please have a seat.

If you would like coffee, it is over on that desk. You will be here for a while; if you have any questions, please ask.”

John (staring and looking completely baffled): “I have never had anyone ask me or expect me to do this before.”

New England Automotive Report

June 2017 27

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 28

[TECHNICAL] FEATURE Larry: “Well, if YOU like, we will do YOUR job for YOU and rekey the estimate for YOU to make YOUR job easier.

We charge $25 to fill in the customer, vehicle and insurer information on the estimate. It is $1.50 per line to enter for rekeying, $25 to check that the labor times and amounts are equal, $35 to enter all supplement charges, $5 per line for descriptive reasons for the operation in the notes and a $10 printing charge. Let me know which way you would like to do this.�

How many estimates will you rekey now? How much will you have to spend on a third-party company to rekey the estimates for you? There is no law that requires you to rekey.

PhOTO EsTimaTEs In August 2014, Jeff Lange and I wrote an article on this, and I feel I need to revisit this topic again. Over the past few years, many of you have seen customers come into your facility with a third-party photo estimating company estimate, and two things are very apparent: There is a definitive issue with the vehicles being significantly underwritten. The person taking the photos, their skill level and even the type of camera they’re using can affect the quality of those photos and what is being depicted in them. Photos often do not accurately reflect the extent of the damage; they can underrepresent the severity of deformities, gouges, scrapes and/or scratches, while some damages would not even be seen due to the angle, sunlight, etc. A scratch that appears like it could be buffed out may be too deep and require refinishing or may not even be seen in the photos. Additionally, without disassembly (which no consumer is going to attempt), no photograph will show hidden damage unless someone has an X-ray app. Another issue is the epidemic of uneducated and unqualified people writing damaged vehicles. Some in the industry (both insurance and repair facility personnel) cannot accurately and properly write a correct damage report with the vehicle in front of them, and you think someone can do this from photos alone? I have talked to many shops, and the estimates can be three to 10 times what the original cost was.

There is an inherent major risk to the wellbeing of the vehicle operator and occupants. The problematic and dangerous issues that could arise to the vehicle operator and/or occupants is that most collisiondamaged vehicles are not safe to drive, although they may in fact be drivable. In most collision events (although most are low-speed), there is often structural misalignment, suspension damage and deformed 28 June 2017

New England Automotive Report

structural components that cannot be seen without disassembly and/or measuring. Operating the vehicle in this condition could put the vehicle operator, passenger and other vehicles on the roadway in a dangerous situation. For example, many times, a bumper fascia (cover), bumper reinforcement and front uni-rail can become damaged, but the fascia shows little to no damage. This is because the fascia is ductile and may have returned to its original shape with only slight stress markings, scrapes and scratches visible.

Another issue would be operating the vehicle with a Supplement Restraint System (SRS) Malfunction Indicator Lamp (MIL) illuminated. Some vehicles will set an MIL in a low-speed collision event because the passenger Occupant Weight System/Occupant Presence System requires reweighing and sensitivity testing. This basically means that the passenger airbag may not deploy when intended or may deploy when not intended. If a small child or a baby in the rearfacing child seat were sitting in the front passenger seat, the airbag could deploy in a subsequent event because the OWS is not accurately measuring the weight in the seat. What type of injury could that child sustain? Most vehicle systems will not illuminate an MIL, and the system may not operate as intended. The driveability and performance of the vehicle may cause a system shut-down, stranding the occupants (which may be a dangerous situation).

continued on page 39

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 29

New England Automotive Report

June 2017

29

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 30

Unsurpassed Quality. Genuine Hyundai Parts.

HYUNDAI IS PROUD OF ITS REPUTATION FOR QUALITY AND SERVICE. SO ARE THE DEALERS AND BODY SHOPS WHO RELY ON GENUINE HYUNDAI PARTS. TO MAKE CERTAIN THAT YOU GET THE RIGHT HYUNDAI PART, ASK FOR A HYUNDAI WHOLESALE PARTS SPECIALIST. For Genuine Hyundai parts, contact an Authorized Hyundai Dealer.

HERB CHAMBERS HYUNDAI 735 Southbridge Street Auburn, MA 01501 TOLL FREE: 800-767-1898 FAX: 508-832-6026 EMAIL: pobrien@herbchambers.com www.herbchambershyundaiofauburn.com

30 June 2017

New England Automotive Report

Buy Hyundai Parts.

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 31

[LEGAL] PERSPECTIVE

by James A. Castleman, Esq.

WhAT CAN AN INSURER PUT IN ThEIR

REFERRAL ShOP CONTRACTS?

I was recently asked how far an insurer can go in what they require from their referral repair shops. In particular, one of the larger Massachusetts auto insurers had begun mandating that their referral shops go through a rather detailed checklist before releasing repaired vehicles to their customers. The list required shops to make inspections and determinations, including evaluating the condition of various mechanical systems. Shops were balking at the checklist, however, since they did not believe that they were in a position to properly judge mechanical worthiness. After all, collision repair shops are in the business of performing auto body repairs, not mechanical repairs, and they are not trained mechanics. How could they be expected to make mechanical evaluations, and what would their liability be if they made a mistake? And if the shops did perform the mandated inspection, were they going to get paid to do it?

The questions are valid. Insurers can require a repair shop to sign a contract as a condition for becoming one of their referral shops. But what can they put in that contract?

GOvERninG Law The so-called “direct payment” law requires Massachusetts insurers to adopt written plans that detail how they will administer their auto damage claims. Regulations issued by the Commissioner of Insurance set out very particular requirements for these plans.

One of the requirements is that insurers give a claimant a list of all registered repair shops, and that they indicate at least five shops on that list that are geographically convenient and will perform repairs on referred claims without undue delay. An insurer’s referral shops also must have “entered into an agreement satisfactory to the insurer, to complete repairs for claimants referred by the insurer without undue delay, for the amount of the direct payment to the insured plus any applicable deductible, plus any supplemental payment authorized by the insurer.”

Referral contracts must be “satisfactory to the insurer,” but are there any limits on what an insurer can require? On its face, the governing regulation does not appear to set any limits (i.e., it seems like insurers can put whatever they want into the agreements). But there are, in fact, limits – as well as reasons for those limits.

REasOn nO. 1 - mandaTEd aCCEPTanCE Of REPaiR shOPs whO mEET REGULaTORY CRiTERia The direct payment regulations specify what criteria an insurer can use in determining which shops to accept as referral shops, and they say that an insurer cannot use any other criteria. If a shop meets those criteria, then it must be accepted by an insurer as a referral shop. The regulatory criteria are “the quality and cost of repairs at a particular shop, the quality of the service given the customer, the New England Automotive Report

June 2017 31

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 32

[LEGAL] PERSPECTIVE responsiveness of the shop to the customer’s needs, the ability of the shop to perform repairs without undue delay, the geographic convenience of the shop for the claimant, cooperation of the shop with the pre- and post-repair inspections and the shop’s compliance with applicable laws and regulations.”

Admittedly, the stated criteria are fairly broad, but an insurer cannot use some unrelated standard to deny a shop placement on their referral list. As examples, it appears that an insurer cannot mandate that a shop has a certain number of employees, has a certain amount of gross revenue, has certain signage, belongs to a particular organization, hires only unionized help or anything else beyond the scope of the stated criteria.

Did the required checklist fall into these criteria?

Although the answer is not entirely clear, arguably it did not.

The insurer might say that the checklist relates to the “quality of the service given the customer,” but it seems to me that the insurer could be hard pressed to be able to establish this if push came to shove.

REasOn nO. 2 - REfERRaL COnTRaCTs CannOT REqUiRE LEGaLLY PROhibiTEd COndUCT This might seem obvious, but sometimes it is not.

Clearly, an insurer could not require a referral repair shop to engage in criminal conduct, such as doing something that constitutes extorting money from a customer or illegally obtaining possession of a customer’s car in order to supposedly protect the insurer’s rights (which would be criminal larceny under Massachusetts law).

On the other hand, requiring a shop to do something that would violate existing Massachusetts statutes or regulations is not necessarily criminal, but could still be illegal. For example, if an insurer were to prohibit a repair shop from preparing its own appraisal for the purpose of negotiation and were to require the shop to accept the insurer’s appraisal sight unseen, that would violate the Auto Damage Appraiser Licensing Board (ADALB) regulations; therefore, it could not legally be included in a referral shop contract. By the same token, an insurer could not prohibit a shop from giving a customer an itemized final bill, since that would violate the Attorney General’s regulations.

Additionally, an insurer can’t require that its referral repair shops perform all work listed in the insurer’s appraisal if a customer does not authorize the shop to do so. After all, under Massachusetts law, a claimant is entitled to get paid the full amount necessary to repair their vehicle to preaccident condition, but the claimant is not required to actually have that work done. They can pocket any excess amount paid, or they can direct a shop to perform different repairs instead. If a customer asks a shop to paint their car plaid instead of straightening a fender, then the customer can choose to contract with the repair shop to deliver a plaid car and can use the insurance check to pay for it. The payment 32 June 2017

New England Automotive Report

belongs to the insured, and they can do what they want with it no matter what their insurer has written on their appraisal of damage.

REasOn nO. 3 - insURERs nEEd EnOUGh shOPs TO aGREE TO bE REfERRaL shOPs Repair shops may think that insurers can put almost whatever they want into their referral shop contracts, such as setting a low ball Labor Rate or unfairly limiting storage payments. But insurers could not comply with the direct payment regulations if they could not get enough repair shops to agree to the terms of their referral contracts. If insurers were to make their referral shop contracts so egregious that they could not get enough shops to sign them, they would not have a viable direct payment plan and would be prohibited from writing auto insurance in Massachusetts.

So, if an insurer were to mandate a Labor Rate so low that no shop would accept it (or were to mandate impossible storage conditions), then there may not be enough repair shops willing to be referral shops for that particular insurer.

Therefore, there is pressure on insurers to have some degree of reasonableness in what they put into their referral shop contracts.

Can a shOP ChaLLEnGE PaRTiCULaR LanGUaGE Of an insURER’s REfERRaL shOP COnTRaCT? Yes. A shop could try to negotiate with the insurer, perhaps pointing out the illegality of a particular contract clause or at least attempting to negotiate a different storage rate or policy because of the shop’s location or circumstances. Assuming that negotiation did not work, a shop still has the right to have its case arbitrated. If a shop requests to become a referral shop but refuses to sign an insurer’s contract because of illegal or unreasonable clauses, the shop can force the insurer to officially deny its request and to file a statement with the Commissioner of Insurance, stating the reason for denial. The shop can then demand arbitration of the denial just like any other shop that has been denied acceptance as a referral facility or which has been removed from an insurer’s referral list.

In truth, I have never heard of a shop ever following this procedure to challenge wording of a referral contract, but the procedure exists. And it would be interesting to see what happens if a shop were to challenge a referral shop contract and to find out if they could convince an arbitrator to force the insurer to change the wording of that contract.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Attorney James Castleman is a managing member of Paster, Rice & Castleman, LLC in Quincy, MA. He can be reached at (617) 4723424 or at jcastleman@prclawoffice.com.

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 33

Contact these Ford or Lincoln Mercury dealers for all your parts needs:

IMPERIAL FORD 6 UXBRIDGE ROAD MENDON, MA 01756 Toll Free Parts: 877-272-0332 Toll Free Fax: 877-800-6316 E-mail: johnl@imperialcars.com First Time Customers call John

© 2017, Ford Motor Company

SARAT FORD LINCOLN MERCURY 245 SPRINGFIELD ST. AGAWAM, MA 01001 413-786-0430 FAX:413-789-3715 www.saratford.com

SENTRY FORD LINCOLN 4100 MYSTIC VALLEY PARKWAY MEDFORD, MA 02155 PARTS: 617-506-6309 FAX: 781-874-9934 E-mail: pnewell@sentryautogroup.com

New England Automotive Report

June 2017 33

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 34

34 June 2017

New England Automotive Report

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 35

New England Automotive Report

June 2017 35

NEAR0617.qxp_NEAR1014 5/16/17 1:10 PM Page 36

It Takes Genuine Honda Collision Repair Parts To Achieve a Genuine Honda Fit. Honda collision repair parts are engineered and manufactured to Honda standards.

In the collision-repair business, time is money, and you can’t waste time on parts that almost fit properly. Use Genuine Honda replacement parts. Your reputation depends on it.

For Genuine Honda parts, contact these Authorized Honda dealers.

Bernardi Honda 960 Worcester Road Natick, MA 01760 Parts Direct: 800-247-3033 FAX: 508-651-1220 www.bernardihonda.com

Lia Honda of Northampton 293 King Street Northampton, MA 01060 Toll Free: 800-369-7889 Direct: 1-413-586-6043 FAX: 1-413-585-0502 www.liahondanorthampton.com

Honda North 382 Newbury Street Danvers, MA 01923 Toll Free: 800-882-9797 FAX: 978-774-9483 e-mail: eadams@iclautos.com www.hondanorth.com

Kelly Honda 540 Lynnway Rt. 1A Lynn, MA 01905 Parts Direct: 800-779-7466 FAX: 781-595-2898 e-mail: mpsomosjr@kellyauto.com

Honda of Enfield 20 Palomba Drive Enfield, CT 06082 Toll Free: 800-222-6632 FAX: 860-253-5419 www.liahondaofenfield.com

Schaller Honda 1 Veterans Drive New Britain, CT 06051 Toll Free: 800-382-4525 Direct: 860-826-2080 FAX: 860-826-2083 e-mail: jkiniry@schallerauto.com www.schallerauto.com

36 June 2017

New England Automotive Report

Lundgren Honda of Auburn 525 Washington Street Auburn, MA 01501 Toll Free: 800-777-2044 FAX: 508-721-0872 e-mail:pmccarthy@lhonda.com www.lhonda.com

NEAR0617.qxp_NEAR1014 5/16/17 1:11 PM Page 37

[COVER] STORY

THE COUNTRYWIDE CONNECTION:

by Joel Gausten

AASP National Touches Down in Boston

when you join aasP/ma, the value of your membership extends far beyond the Commonwealth.

In addition to serving the Massachusetts collision and mechanical repair industry, AASP/MA is an affiliate of AASP National, a multi-state organization founded in 1999 that currently represents over 7,100 automotive businesses in 10 states. The Massachusetts association’s affiliation with this group gives it direct access to a larger entity that is committed to strengthening the business success of repairers, forging strategic alliances and monitoring federal legislation and regulations.

Last month, the local industry’s connection to AASP National reached new heights when AASP/MA hosted AASP National’s bi-annual Board meeting for only the second time in the multi-state group’s history. Held at the offices of AASP/MA’s executive team, Lynch Associates, the four-hour meeting allowed representatives from affiliates in Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina and Pennsylvania an opportunity to detail their individual group’s efforts to improve the industry. AASP/MA was represented at the meeting by Executive Director Jillian Bukhenik, Collision Director (and former AASP National President) Rick Starbard and Board members Frank Patterson and Joshua Fuller.

AASP National Collision Director Rick Starbard (AASP/MA)

During his Collision Report to the Board, Starbard discussed the ongoing success of the Database Enhancement Gateway (degweb.org). Launched in 2007, the DEG is a free-to-use initiative that was developed to help improve the quality and accuracy of collision repair estimates through proactive feedback from the repairers and other “end users” to the Information Providers (IPs) that supply the databases for the various estimating

Leaders and representatives from several AASP affiliates share news and updates on industry affairs in their states.

NEAR0617.qxp_NEAR1014 5/16/17 1:11 PM Page 38

products. The DEG was created and is equally funded and maintained by AASP National and the Society of Collision Repair Specialists (SCRS).

Starbard noted that the DEG was approaching the 11,000-inquiry mark, while the recently revamped DEG website has allowed for greater tracking and recordkeeping.

“It adds a lot more automated reporting, so we’re getting more detailed reports every week on users

and how things are being handled,” he said.

Discussing matters closer to home, Bukhenik updated the National Board on a number of AASP/MA’s recent activities. The association’s current legislative activities incorporate promoting five pieces of legislation including the long-running Labor Rate bill, which was passed by the Massachusetts Senate during the previous session for the very first

time. In addition to bills addressing steering and aftermarket parts, AASP/MA is actively pushing two bills relative to the Auto Damage Appraiser Licensing Board (ADALB).

The first piece will add two new members to the ADALB – a consumer representative and a member from the Massachusetts Attorney General’s Office – in addition to the Board’s current chairman/two collision representatives/two insurer representatives structure. The second bill would move the ADALB from the Division of Insurance to the Division of Professional Licensure.

“We feel like that’s the more appropriate regulatory body [for that Board],” Bukhenik said.

AASP/MA’s other ADALB-related actions include pushing back against the spread of photo estimating in the state. Although the previous ADALB had voted to issue an Advisory Ruling accepting photos as “personal inspection,” the current Licensing Board – of which Starbard is a member – voted to rescind that Ruling last year. It is the association’s belief that taking photo estimating off the table helps to support state regulations regarding personal appraisals and inspection stickers.

“Even if it’s a photograph of a broken headlight, you can’t write the appraisal unless you’re there to scrape the sticker off,” Starbard said.

In April, the ADALB voted to issue a new Advisory Ruling on photo estimating. The critical portion of this Ruling is as follows: The Auto Damage Appraiser Licensing Board has passed a motion declaring, if during the review of photographs or video submitted by a consumer for a claim that falls below the $1,500 damage threshold, (212 CMR 2.04 (1)(a) mandates a written appraisal of motor vehicle damage in excess of $1,500 less any deductible) the appraiser determines that a motor vehicle is or may be damaged such that: (a) it may no longer meet the safety standards established by the registrar of motor

38 June 2017

New England Automotive Report

NEAR0617.qxp_NEAR1014 5/16/17 1:11 PM Page 39

[TECHNICAL] FEATURE continued from page 28 vehicles under section seven A of chapter ninety; or (b) it may no longer comply with the motor vehicle emission standards established by the commissioner of the department of environmental protection under section 142M of chapter one hundred and eleven, the appraiser may not conclude the appraisal based on the photographs or video, but shall continue the appraisal by conducting a personal inspection of the damaged motor vehicle. Furthermore, the appraiser shall immediately notify the owner of the damaged motor vehicle that the vehicle may be unsafe to drive and/or in violation of the emission standards.

This Advisory Ruling shall be effective upon posting on the Auto Damage Appraiser Licensing Board public website. Failure to comply with this ruling could result in fines and penalties as provided for by law.

In other news, Bukhenik reported that AASP/MA representatives recently met with the Attorney General’s Office regarding a number of consumer-related collision repair issues including pre- and post-repair scanning.

Additionally, the AG’s Office reached out to the association for input on total loss practices in the state. The AG is currently investigating the matter following the conclusion of a critical legal case that challenged the use of CCC as a valuation tool in determining total loss. (Details on the case are available at tinyurl.com/me5rvws.)

“A consumer took an insurer to court on a total loss settlement over using CCC,” Starbard explained. “The court ruled that they should be using NADA or retail book values versus relying on tools like CCC.” As for the future, Bukhenik and the rest of the AASP/MA executive team will work to build new sources of non-dues revenue while also continuing to follow their current strategic plan, which is now in its second year.

Developed with the Pyramid Group consulting firm, the association’s plan helps streamline AASP/MA’s activities and keep the Board focused on specific goals that build the success of the auto repair industry.

“I think [the strategic plan] helps in terms of discussion at the Board level and what we’re doing activity-wise,” noted Bukhenik. “It helps to focus those conversations and realize our priorities.”

For more information on AASP National (including special member discounts from companies including Mitchell 1, One Eighty Business Solutions LLC and Autoshop Solutions), visit autoserviceproviders.com. More information on AASP/MA is available at aaspma.org.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

So, who is gaining an advantage in this process by saving time and money? The consumer, you...or the insurance company?

Well, consumers sometimes believe whatever they hear. Do regulations support complete truth in advertising? Unfortunately, no. Until a claim is issued, they can say whatever sounds good on television and in print advertisements. Once in the hands of claims personnel, however, things can change. By using a photo estimating app, the insurance companies are betting the odds that many people will just keep the money and never have their vehicle repaired. They are also betting the odds that some shops will do the repairs for whatever price they are paid and/or are counting on a lowcost supplement. Remember that the insurance company saves time and money using a photo estimate app because they don’t have to pay an adjuster to come out and look at the vehicle at your shop. Where is the advantage to the shop or the consumer? The consumer’s best interests are served by getting their vehicle properly inspected by a professional at a reputable repair facility.

I’m not saying that these collision repair estimate apps have no value at all. These third-party guesstimating apps and services should be used at the scene with the vehicle(s) involved. This would assist with the prevention of fraud involving the actual sustained damage and even with fraudulent injury claims.

Maybe the photo app should have a video app option, too. Always remember the repair facilities’ number one concern is their liability and then the protection of their customer – the vehicle owner. Your contractual agreement is with the vehicle owner, and the insurance company has a contractual agreement with the vehicle owner or an obligation to a third-party claimant (if they accepted liability).

I hope this article has shed some light on recent events in the industry.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Larry Montanez, CDA is co-owner of P&L Consultants with Peter Pratti Jr. P&L Consultants works with collision repair shops on estimating, production and proper repair procedures.

P&L conducts repair workshops on MIG & Resistance Welding, Measuring for Estimating and Advanced Estimating Skills. P&L also conducts investigations for insurers and repair shops for improper repairs, collision reparability and estimating issues. Larry is ISO 9606-2 Certified for Audi and Mercedes-Benz and is a certified technician for multiple OEM Collision Repair Programs.

P&L can be reached by contacting Larry at (718) 891-4018 (office), (917) 860-3588 (cell) or info@PnLEstimology.com.

New England Automotive Report

June 2017 39

NEAR0617.qxp_NEAR1014 5/16/17 1:11 PM Page 40

40 June 2017

New England Automotive Report

NEAR0617.qxp_NEAR1014 5/16/17 1:11 PM Page 41

New England Automotive Report

June 2017 41

NEAR0617.qxp_NEAR1014 5/16/17 1:11 PM Page 42

ASK MIKE [INDUSTRY] ADVICE

Do you have a question for Mike? Contact New England Automotive Report Editorial Director Joel Gausten at joel@grecopublishing.com or (973) 600-9288, and we’ll ask him in a future issue.

How Could Getting Involved in OEM Certification Benefit a Body Shop?

the decision on where they want to take the car. At the end of the day, you’re going to have to be on that list. Also, I think that with vehicles changing so drastically, in order to do safe and proper repairs, you’re really going to need a direct line to that OEM via training and education, so you can show that you’re repairing vehicles properly. I think that OEM certifications are absolutely a must-have for a shop to thrive in the future, just because they need to have that connection with the OE manufacturer.

As far as which manufacturers you should pursue, you need to do that in a situations where minutes can be the difference between life and death. But with smart way. I can’t speak for all paint companies, but Axalta Coating Systems telematics, a lot of OEMs now have the ability to be notified when a vehicle is in an has something called GMAPS, which is a study that helps the shop identify how accident. If an OEM manufacturer is New England Automotive Report: many vehicles of a specific type are notified that an airbag deploys, then they Mike, there’s obviously a lot of talk in the registered in their market area. absolutely can dispatch EMT people there industry about OEM certification programs Hypothetically, it might say that there are these days. How could getting involved in sooner, and hopefully that will save lives.

290 Audis registered within a 10-mile But another benefit is that if the OEMs OEM certification benefit a body shop? radius from you, but maybe there’s 9,000 receive information via telematics that the Fords. If that’s the case, then it doesn’t vehicle’s been in an accident, it gives them Mike Anderson: For shops to thrive in the the ability to really record that first notice of make sense for you to pursue Audi future and not just survive, I think they’re certification. Before you invest in the loss – commonly known as FNOL. So absolutely going to need to have OEM training and equipment for OE certification, when that happens, the OEMs have the certification. But I think it’s important for I think it’s important that you find ability to connect with that customer and them to understand why, and it’s also somebody you can partner with to help say, ‘Hey, do you have a shop in mind? If important for them to understand which you determine if enough of one type of you don’t, we have the ability to refer you OEM certification they should pursue. vehicle is sold in your market to support to a certified shop and possibly even tow Last year, people dying as the result of that investment. Toyota, GM or Ford are that vehicle for free for you.’ One of the a car accident was the fourth-leading pretty much going to be mainstays, but benefits of being a Honda or Acura owner cause of death in the US; heart attacks when you get to the high-ends like Tesla, is that those manufacturers will tow your and strokes were number five.

Porsche and Audi, you probably need to vehicle to a certified repair shop for free.

Manufacturers are focusing on making Cadillac and others are doing that as well. make sure you do your research first to vehicles to prevent fatalities. One part of make sure there’s enough of those I believe with the utmost confidence that is how vehicles are being designed to that the OEMs will eventually be involved in vehicles in your area. keep people safer while in them, but If you have a management system, this first notice of loss, and they will be a another part is the response time of big influence when the customer is making you can go back and look at the past five emergency medical technicians in In our newest regular feature, we welcome industry legend and former VA-based shop owner Mike Anderson (Collision Advice) to discuss some of the collision repair community’s biggest questions and concerns. This month, we discuss some of the primary reasons why some shops might want to consider getting involved in OEM certification programs. We at New England Automotive Report hope you find this following exchange useful, and we encourage you to reach out to us if you have a question for Mike on this or any industry-related matter that he can answer in a subsequent issue.

continued on page 45 42 June 2017

New England Automotive Report

NEAR0617.qxp_NEAR1014 5/16/17 1:11 PM Page 43

New England Automotive Report

June 2017 43

NEAR0617.qxp_NEAR1014 5/16/17 1:11 PM Page 44

WE KNOW WHAT YOU’RE THINKING. YOU WANT TO KNOW IF THE PART’S IN STOCK, HOW MUCH IT COSTS, AND WHEN IT’S GONNA GET THERE. We get it.

You want the best part for a Toyota, but you’ve got to know when and how much.

Well, now you can. In addition to tools that can help you find and order the right VIN-based parts, now you can see if it’s in stock, schedule the delivery, even see your shop’s net price from your participating Toyota Dealer.* Now you’re thinking: “Cool!”

ToyotaPartsAndService.com

©2014 Toyota Motor Sales, U.S.A., Inc.

For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: Copeland Toyota 970 West Chestnut Street Brockton, MA 02301 Toll Free: 800-856-1172 Fax: 508-559-9264

wholesaleparts@copelandtoyota.com www.copelandtoyota.com/wholesaleparts

Prime Toyota of Boston 1605 VFW Parkway West Roxbury, MA 02132 PH: 617-469-1022 Fax: 617-469-8987 www.driveprime.com kmcisaac@driveprime.com

44 June 2017

IRA Toyota of Manchester 33 Auto Center Road Manchester, NH 03103 Toll Free: 800-828-6076 Direct: 603-657-2410 Fax: 603-657-2419

Wellesley Toyota 216 Worcester Street Wellesley, MA 02481 PH: 800-734-0006 Direct: 781-237-4042 FAX: 781-237-3481

stirrell@iramotorgroup.com www.iramotorgroup.com

parts@wellesleytoyota.com www.wellesleytoyota.com

IRA Toyota Danvers 161 Andover Street Danvers, MA 01923 PH: 800-774-8411 ext.1 Direct: 978-739-8306 FAX: 978-739-8098 www.iramotorgroup.com

New England Automotive Report

Bernardi Toyota 1626 Worcester Road Framingham, MA 01702 Parts Direct: 800-248-3033 FAX: 508-879-7895 www.bernarditoyota.com

NEAR0617.qxp_NEAR1014 5/16/17 1:11 PM Page 45

[INDUSTRY] ADVICE continued from page 42 years of all the vehicles you fixed and see the most common ones. Also, there’s a great resource on I-CAR’s website [tinyurl.com/lsqex6g] where you can click on various manufacturer logos and see some of the training that is required for each.

Shops should understand that they need to start thinking more for the future.

In my mind, a good shop should be building a budget every October for the upcoming year. When they start to build their budgets, they have to start thinking about allotting a lot more for training and education. We have to be trained. A lot of people say, ‘If I train this person and they leave, what do I do?’ Well, what happens if you don’t train them and they stay? You have the liability.

NEAR: What might be some things that would prevent a shop from considering OEM certification at this time?

MA: Maybe there are already some OEMcertified shops in the area, and you can’t get on the list. Well, it doesn’t mean those people are going to have them forever; things change. People can sell or lose their business, or maybe an OEM gets a complaint against that shop and decides to pull that certification.

Maybe you want to retire in the next two to three years. It may not be beneficial for you to go out and spend $200,000 on equipment to get certified, because you’re never going to see your return on investment. You really have to understand where you are today and how much longer you’re going to be in business before you invest in this.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Mike Anderson is an Accredited Automotive Manager (AAM) and the former owner of Wagonwork Collision Centers, two highly acclaimed shops located in Alexandria, VA. He has served as a member of many industry organizations throughout his career, including the WMABA Board of Directors, the Mitchell Advisory Board, the MOTOR Advisory Board, the ASE Test Review Committee, the National Auto Body Council, the Collision Industry Conference and the Society of Collision Repair Specialists. Additionally, he is a past Virginia SkillsUSA chairman, serves as a facilitator for Axalta Coating Systems’ highly recognized Business Council 20 Groups in both the US and Canada and facilitates numerous courses for Axalta Coating Systems’ Educational Series.

He currently offers expert industry consulting via his latest venture, Collision Advice (collisionadvice.com).

NEW ENGLAND’S NEWEST MOPAR DEALER

Hours: M-F: 7am-6pm Sat: 7am-1pm

777 Washington Street • Newton, MA 02160

Call Us For All Your MOPAR Needs or visit us on the web: www.mcgoverncjdrofnewton.com

For First Time Customers, Call me: Mando Bogosian, Wholesale Manager

Hours: M-F: 7am-6pm Sat: 7am-1pm

TOLL FREE: 800-741-7563 DIRECT: 617-454-2990 FAX: 617-467-0006

Call us and get the right MOPAR parts the FIRST TIME! New England Automotive Report

June 2017 45

NEAR0617.qxp_NEAR1014 5/16/17 1:11 PM Page 46

2017 MEMBERSHIP APPLICATION MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

As a member of the Alliance of Automotive Service Providers of Massachusetts (AASP/MA), I will abide by the association’s bylaws and code of ethics. I understand that membership in AASP of Massachusetts is non-transferable, and I must remain current with my dues in order to be a member in good standing. I understand that if I discontinue my membership that I must immediately cease using any association promotions, logos or materials. Additionally, I understand that as part of my AASP of Massachusetts membership, I will receive New England Automotive Report, the official publication of AASP of Massachusetts, faxes, emails and other mailings.

*** PLEASE TyPE OR PRINT LEGIBLy *** Primary Contact Name: ________________________________________________________________________________________________ Business Name: ______________________________________________________________________________________________________ Street Address ________________________________________________________________________________________________________ Street

City

State

Zip

Mailing Address ______________________________________________________________________________________________________ City

Street

Phone Number ( E-mail Address

)____________________________________ Fax Number (

State

Zip

) __________________________________________

________________________________________ Web Site Address ____________________________________________

MEMBERSHIP TYPE (check one) Collision Repair Shop

ACCOUNTS PAYABLE CONTACT: Name: __________________________________________________

Mechanical Repair Shop

Phone Number: __________________________________________

Both, Collision & Mechanical Repair Shops Vendor

Email:____________________________________________________

RS Number (if applicable) ________________________________ ANNUAL MEMBERSHIP DUES

AASP/MA CHAPTER (check one) MidState Southeastern Northeastern Western

(The AASP membership year is from January 1 to December 31, 2017)

$40/month

$115/quarter

$425/year - BEST vALUE!

Monthly & Quarterly Dues are Automatic Credit Card Transactions ONLY*

NEW! Political Action Committee (PAC) Donation ...............$_____ Personal Contributions Only

ADDITIONAL CONTACT FOR NEWSLETTERS AND LEGISLATIVE UPDATES Name: ____________________________________________________ Email: ____________________________________________________ Name: ____________________________________________________ Email: ____________________________________________________ Name: ____________________________________________________

Check or Cash

Credit Card:

Visa

MasterCard

Amex

Card Number: __________________________________________ CID Number: ____________ (3#s on back for Visa, 4 on front for AMEX) Expiration Date: ________________________________________ Name on Card: __________________________________________ Billing Address of Credit Card: ____________________________

Email: ____________________________________________________

________________________________________________________

Name: ____________________________________________________

________________________________________________________

Email: ____________________________________________________

Signature: ______________________________________________

Name: ____________________________________________________

Date: __________________________________________________

Email: ____________________________________________________

PLEASE COMPLETE ThIS MEMBERShIP APPLICATION AND RETURN IT WITh PAyMENT TO AASP-MA OFFICE. 12 Post Office Square, 6th Floor • Boston, MA 02109 Phone: (617) 574-0741 | Fax: (617) 695-0173|jzywien@aaspma.org As required by the U.S. Tax Code, AASP of Massachusetts, Inc. informs its members that 75% of the dues paid to the association are tax deductible. The remaining 25% is allocated to legislative activities and is not tax deductible.

46 June 2017

New England Automotive Report

NEAR0617.qxp_NEAR1014 5/16/17 1:11 PM Page 47

New England Automotive Report

June 2017

47

NEAR0617.qxp_NEAR1014 5/16/17 1:11 PM Page 48

NEAR0617.qxp_NEAR1014 5/16/17 1:11 PM Page 49

GOT CLUTTER???

If you have unused, unwanted tools, equipment, parts or materials taking up valuable shop space, ÃÌÊÌ i in New England Automotive Report. Let us find someone who wants your stuff!

Fill out the form below and fax to (973) 235-1963 or email to joel@grecopublishing.com MAKE SURE TO LEAVE A CONTACT NUMBER & EMAIL WHERE POTENTIAL BUYERS CAN REACH YOU.

What are you getting rid of? (Be specific)

Price: $_________

Is Price Negotiable?

Do you have photos of the item being sold?*

YES _____

NO _____

YES _____

NO _____

Make/Model/Year (for parts): Model Years Spanned (i.e. 2003-2005): Part Name (Be specific): Condition (Please check one):

Excellent _____

Good _____

Fair _____

Poor _____

Where is the item located? (City/State) ______________________________________________________ CONTACT INFORMATION: Your Name: Company Name: (Optional) Contact Phone Number (REQUIRED!) Contact Email:

*IMPORTANT! If you have photos of the items being sold, please email them to joel@grecopublishing.com or call ­603®Ê680-4324 for more information.

Photos sent via Fax WILL NOT be published.

FAX THIS FORM TO NEW ENGLAND AUTOMOTIVE REPORT @ (973) 235-1963 OR EMAIL TO joel@grecopublishing.com.

Call 603 680-4324 with questions.

New England Automotive Report

June 2017 49

NEAR0617.qxp_NEAR1014 5/16/17 1:11 PM Page 50

N

FOR SALE

offer

Contact: Gary (413) 562-0321

W

E

N

G

L

A

N

D

AUT M TIVE

A LEFT uniside panel with full quarter panel. Bought new. Fits a 2015 Buick LaCrosse.

GM Part # 22997609 List price is $931.83. Cost seller $698.88. Panel is missing a section of the lower front rocker area from the "A" pillar to the "B" pillar

Will sell for $250 or best

E

Will sell for $250 or best offer

Two Pro Spot welders

AD INDEX Accudraft Paint Booths ............................OBC Audi Group ....................................................24 Audi Shrewsbury ..........................................40 Axalta Coating Systems ..................................6 Balise Wholesale Parts Express ......................4 Best Chevrolet/Best CDJR..........................IFC BMW Group ..............................................16-17 BMW/Mini of Warwick ................................25 Colonial Auto Group ....................................11

One is new and usable; second can be used for spare parts

$1,200

Empire Auto Parts............................................9 Enterprise ..........................................................9

Location: Manchester, NH

First Chrysler-Dodge-Jeep-Ram ..................20

(price negotiable)

First Hyundai..................................................20

First Ford ........................................................20 Ford Group ....................................................33

Contact: lucie ducharme (603) 624-4086 jenniferp@henrysab.com

Continental Flat Rack with two pulling towers, one tower dolly, four clamps and complete UMS (universal measuring system).

Ira Subaru........................................................13 Ira Toyota of Danvers ....................................12 Kelly Automotive Group............................IBC Kia Group........................................................35 Linder’s, Inc. ..................................................20 Long Automotive Group ..............................48 Martin Senour ..................................................5 Mazda Group..................................................43

Contact: Kevin (508) 747-0316

McGovern Chrysler Jeep Dodge Ram ........45

or kevin@capeautobody.com

Model years 2006-2007 Excellent condition

Located in Walpole, MA

Mercedes-Benz of Shrewsbury ....................40 Mopar Group..................................................26

$650

(price negotiable)

Contact: Ed Balabanis (508) 668-8041 or Balshop1@gmail.com

New Left Rear ¼ Panel for VW Jetta 2005-2010 w/ small rocker section removed. Excellent condition.

$75

Location: Seekonk, MA Contact: Dickie-David Cabral (508) 336-7550 or srow@fullchannel.net 50 June 2017

Hyundai Group ..............................................30 Imperial Ford ..................................................33

$5,000 or best offer

Rear Liftgate for a 2006 Honda Odyssey (paint code R519P)

FutureCure ......................................................38 Honda Group..................................................36

New England Automotive Report

Nissan Group..................................................21 P&L Consultants ............................................28 PPG ....................................................................3 Robertsons GMC Truck ................................14 Sarat Ford Lincoln..........................................41 Sentry Group ..................................................23 Tasca Group ....................................................34 Toyota Group..................................................44 Volvo Group....................................................29 VW Group ......................................................47 Wagner BMW of Shrewsbury ......................40 Wagner Kia of Shrewsbury ..........................40 Wellesley Toyota/Scion ................................41 Wheel Collision Center ................................13

NEAR0617.qxp_NEAR1014 5/16/17 1:11 PM Page 51

NEAR0617.qxp_NEAR1014 5/16/17 1:11 PM Page 52