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30-35 College Point Blvd. Flushing, NY 11354
Wholesale Direct: 929.297.0788
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MERCEDES-BENZ OF BROOKLYN 1800 Shore Pkwy. Brooklyn, NY 11214
Wholesale Direct: 718.258.7055
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MERCEDES-BENZ OF CALDWELL 1220 Bloomfield Ave. Caldwell, NJ 07006
Wholesale Direct: 973.808.0204
Parts@mbofcaldwell.com mbofcaldwell.com
JAGUAR BROOKLYN 809 Neptune Ave. Brooklyn, NY 11224
Wholesale Direct: 929.583.6492
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LAND ROVER BROOKLYN 809 Neptune Ave. Brooklyn, NY 11224
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LEXUS OF BRIDGEWATER 1550 US-22 Bridgewater, NJ 08807
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LEXUS OF EDISON 711 US Highway 1 Edison, NJ 08817
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P.O. Box 734 Neptune, NJ 07753
EXECUTIVE DIRECTOR
Charles Bryant 732-922-8909 / setlit4u@msn.com
2023-2025 OFFICERS
PRESIDENT
Ken Miller, 821 Collision, LLC (973) 949-3733 / kmiller@821collision.com
COLLISION CHAIRMAN/
PAST PRESIDENT ATTENDING
Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net
MECHANICAL CHAIRMAN
Keith Krehel, Krehel Automotive Repair, Inc. 973-546-2828 / krehelauto@aol.com
TREASURER
Tom Elder, Compact Kars, Inc. 609-259-6373 / compactkars@aol.com
SECRETARY
Thomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / thomas@grecopublishing.com
BOARD
Nick Barbera, Union Collision 908-964-1212 / nick@unioncollision.com
Dennis Cataldo, Jr., D&M Auto Body 732-251-4313 / jr@dnmautobody.com
Brad Crawford, Livingston Collision, Inc. 973-992-5274 / livingston.collision@gmail.com
Todd Fontana, Proline Body & Chassis 201-398-1512 / todd@prolinebody.com
Gary Gardella, Jr., County Line Auto Body 732-363-5904 / countylineautobody@gmail.com
Dean Massimini, Autotech Collision Service, Inc. 856-232-1822 / autotechnj@comcast.net
Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com
Ted Rainer, Ocean Bay Auto Body 732-899-7900 / ted@oceanbayautobody.com
Anthony Trama 973-818-9739 / anthonytrama@aol.com
BOARD ALLIED
Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com
Mike Kaufmann, Mike Kaufmann Dealer Group 973-332-7014 / mkaufmann@adps.com
PRESIDENT/PUBLISHER
Thomas Greco / thomas@grecopublishing.com
VICE PRESIDENT/SALES DIRECTOR
Alicia Figurelli / alicia@grecopublishing.com
EDITORIAL DIRECTOR
Alana Quartuccio / alana@grecopublishing.com
SENIOR CONTRIBUTING EDITOR
Chasidy Rae Sisk / chasidy@grecopublishing.com
OFFICE MANAGER
Donna Greco / donna@grecopublishing.com
PRODUCTION COORDINATOR
Joe Greco / joe@grecopublishing.com
CONTRIBUTING EDITORS
(973) 667-6922 / FAX: (973) 235-1963
LOCAL NEWS
14 Automotive Students Let Their Talents Shine in NJ SkillsUSA Competition by Alana Quartuccio
LOCAL FEATURE
16 Koplin Auto Body’s Adele Rivas Recognized as an Automotive Industry Leader by Alana Quartuccio
SCHOOL PROFILE
20 Ocean County Vocational Technical School by Chasidy Rae Sisk
NATIONAL NEWS
24 SAFE Repair Act Focuses on Consumer Protection by Alana Quartuccio
COVER STORY
28 What’s Fueling the MSO Fire? by Chasidy Rae Sisk
LEGAL PERSPECTIVE
32 Navigating Lease Agreements in Auto Repair Shop Transactions: Key Considerations for a Successful Transition by Peter Tanella and Joshua Bauchner, Mandelbaum Barrett, PC
AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY
40 Wharton Insurance Briefs by Mario DeFilippis
Joe Amato, Sr.
Ron Ananian
Jim Bowers
Charles Bryant
Don Chard
Guy Citro
Pete Cook Ed Day
Dave Demarest Phil
Tom
Bob
Thomas
Rich
Mike Kaufmann
Wes Kearney
Nick Kostakis
Jim Kowalak
Keith Krehel
Joe Lubrano
Michael Lovullo
Jeff McDowell
Jerry
Russ Robson
Jerry Russomano
George Threlfall
Anthony Trama
Cynthia Tursi
Lee Vetland
Paul Vigilant
Rich Weber
Brian Vesley
Glenn Villacari
Stan Wilson
Lessons
Although I have been a business owner for almost four decades, I sometimes tend to get jaded or lazy and forget some of the most important lessons I have learned.
As I hinted at in prior articles, I am indeed getting grumpier and more disenchanted as I get older, especially in business. Fortunately for me, I have a great staff that either reminds me to snap out of it…or more often, just does it for me so it doesn’t hurt the company.
Probably the most important thing any business has to excel at is customer service. I am proud that we have always made that a priority, and even more proud that the vast majority of our customers and clients share that same philosophy.
Believe me, my faith has been tested. I’m pretty sure I’ve mentioned this before, too, but when the pandemic hit, we offered our advertisers, who were struggling, free ads due to the loyalty they had shown us over the years. Unfortunately for us, when the economy bounced back, a significant number of our advertisers seemed to lose our number. That just made me appreciate those who stayed that much more. They valued our customer service and showed it with their loyalty and their checkbooks.
I am reminded of the impact of customer service on loyalty as I write this. I am currently on vacation in Orlando and have just experienced the best and worst of customer service from the same company.
Whenever I make a reservation at a hotel, I always have a few specific requests that I don’t think are that big of a deal. I understand that some people ask for silly things, so the hotel has to tell you they will “try their best to accommodate you,” but nothing is guaranteed. Fair enough. That being said, in the 25 years we have been coming to Orlando, I’ve never been turned down. I also make sure to make the reservation at least three months in advance and follow up with three phone calls between the date of the call and arrival.
Here’s my list: (this will either make you laugh at me, feel pity for me or hate me. LOL)
1. A Lagoon View room (I don’t need to hear Beyonce’s booming bass shake the walls while I try to sleep in a Pool View room),
2. A room near the elevator (I’m 64 with a bad back), and
3. A shower instead of a tub (see #2).
I was scheduled to arrive at 1pm, but my wonderful train was four hours late, so my wife arrived before me. She called when she got in the room.
by THOMAS GRECO, PUBLISHER
“Um, you’re not going to be happy.” I was already in a bad mood; I was still on the train.
“What’s wrong?”
“The room is at the very end of the hotel. It took me 10 minutes to get here from the elevator.”
I was calm. I told her to go to the front desk and call me from there. When she did, I asked her to put me on with the front desk. The girl was very pleasant, but said they were all booked and they really couldn’t do anything. I asked for a supervisor. This girl was not as nice. “There’s nothing we can do. I’m sorry.” After five minutes of going back and forth, I said, “I guess I’m not winning this argument.” She said, “Hold on.” Nice! I finally got through to her. A minute later, she picked back up. “I’m sorry, there’s nothing we can do.”
I was too exhausted to get angrier. I made it to the hotel and headed for the room. Six hours later, I found it (kidding). But it was pretty frigging far. It literally was the second to last room in the hotel. I can’t tell you how pissed off I was with their customer service.
So, when we got back from dinner, I tracked down the hotel general manager’s email and relayed to him what went down. Now look, I am not naive. Even if it got to him, I didn’t expect a response. This wasn’t Greco Publishing; it was Universal Studios.
But lo and behold, when I checked my email this morning, there was a reply. The GM said that this wasn’t acceptable, and that someone would contact me as soon as I was available. A short time later, the hotel’s Associate Director of Rooms called me, apologizing profusely and saying they had a room closer to the elevators if we would like to change. I accepted his offer. Great customer service, right?
Wrong. It was AWESOME customer service. He didn’t just get us a room; he got us a two-bathroom suite with a full living room and dining room. The nicest room we have ever had in our over two decades of going to Orlando. For no additional cost!
When we came back tonight and I looked around the suite, I said to myself, “If a company as big as Universal can extend this kind of support to one customer out of millions, who am I to not strive to match this level of service to my customers? No matter how old and grumpy I’ve become.”
Lesson relearned.
Where Did All the Work Go?
If you’re in the collision repair business today, you don’t need a spreadsheet to tell you something’s off – you can feel it in your schedule, in your lot, in your bottom line. Repair volume is down, and this time, it’s not just seasonal. Across the country, shops are reporting emptier bays, lighter weeks and growing concern about what’s really going on. The question being asked in every shop office and 7am team huddle is the same: Where did the work go?
We’re dealing with a convergence of challenges that no one could’ve predicted just a few years ago. First and foremost: ADAS. Advanced Driver Assistance Systems are doing their job – reducing minor and moderate collisions. These systems are increasingly effective at preventing the kind of low-speed accidents that once made up a significant chunk of our business. And while we’re still seeing repairs, those jobs are fewer and more complex. A bumper job now involves
by KEN MILLER
multiple sensor calibrations, module resets and OEM procedures that didn’t exist a decade ago.
And yet, as complexity and labor hours increase, another trend is working directly against us: insurance carriers are pushing down reimbursement rates. We’re seeing tighter approvals, lower labor allowances and more resistance on necessary operations –especially when it comes to calibrations and OEM procedures. So, not only are shops doing more to repair these technologically advanced vehicles –we’re being paid less, or having to fight harder, to get reimbursed fairly.
This is happening at the same time many shops have made massive investments to stay relevant and certified in this new repair environment. Between ADAS diagnostic tools, recalibration systems, OEM training
Being an AASP/NJ member has its privileges. Between savings and revenue generated by AASP/NJ member benefits, discounted education and training opportunities, access to the AASP/NJ Labor Pool and Hotline, advocacy in Trenton and exclusive members-only access to documentation, forms and regulations on aaspnj.org, you simply can’t afford NOT to be an AASP/NJ member!
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The Wild, Wild West Is Back Again!
I know that the title of this article is likely to get the attention of many, and that’s exactly why I named it “the wild, wild west”! I want people to hear about what is currently going on with insurance companies handling auto property damage claims right here in New Jersey. In all my years – and I will be the first to admit, that is many years – I have never seen things as bad as they are right now.
For many years, I’ve run a hot line for AASP/NJ members, and it has never been as hot as it is right now. In other words, it is ringing off the hook. Collision shop owners, consumers and even some of the technicians are calling the hotline to report the improper conduct of certain insurance companies. And when I say “certain,” a better word might be most insurance companies. Now don’t get me wrong: one of the main purposes of the hotline is to assist shop owners, and even their customers, when
they are experiencing difficulties related to collision damage or collision claim issues. However, lately, it seems like every claim that members of AASP/NJ and/or their customers are dealing with is a problem.
Please allow me to explain a little better. One of the main topics that seems to be causing a lot of problems is that most insurers are now taking the position that they no longer come out to inspect damaged vehicles at collision shops. Instead, those insurers are telling the shops who are requesting an inspection of a damaged vehicle at their shop to take photos of the damage to send them via email so the insurer can prepare an estimate of the damage and get it over to the shop along with a check for the damage reflected in the insurer’s photo estimate.
Now, that might be ok for a vehicle with minor damage, like
by CHARLES BRYANT
a scratch in a fender or even a small amount of minor collision damage; however, when it comes to a vehicle that was involved in a major collision with damage so severe it had to be towed from the scene of the accident and the driver of the vehicle had to be cut out of the vehicle, it is literally impossible to prepare an accurate estimate based on photos, PERIOD! In fact, it is insulting to experienced collision shop owners who have been trained to repair severely damaged vehicles safely and properly to take photos of the damage to send to an insurer for an estimate.
Plus, once again, it is illegal for a New Jersey licensed collision shop to prepare an estimate based on pictures, phone calls or any means other than the personal inspection of the damaged vehicle. See the actual provision in the NJ Auto Body License Law below:
continued on pg. 34
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Automotive Students Let Their Talents Shine in NJ SkillsUSA Competition
Today’s students are tomorrow’s professionals. Training and mentoring them while they are in school plays a very important role in their quest for success in a career in collision and mechanical repair.
Every year, the SkillsUSA New Jersey State Competition gives students the opportunity to show off their skills and talents, giving them further encouragement and support as they explore their love for the automotive profession.
On March 22, Somerset County Vocational & Technical School once again hosted the collision repair competition. Congratulations go to first place winner Jaedon Leon (Elizabeth High School) in the collision repair competition! Coming in second place was Jon Ferry (Camden County Institute of Technology), and Lucas Krumpel Santos (Elizabeth High School) came in third place.
Event organizer Charity Ritter (Bridgewater Collision Repair) expressed her gratitude to the following for taking the time out to judge the competition: Ivan Crespo, Peter Ritter, Al Bartocci, Gabrielle DepintoD’Aquanni, Abigail Heim, Ted Rainer and David Gutierez. Ritter also gave special thanks to those who
donated to the competition – John Vorhees of Central Paint supplied the materials, AASP/NJ and Auto Body Distributors donated tools and Bridgewater Collision donated the toolbox, tools and bags, including hand tools and T-shirts for each participating student. Special thanks also goes to Steve Moskal of Empire Auto Parts who donated 20 fenders for the competition.
On April 3, the mechanical competition was held at the Mercedes-Benz training facility in Robbinsville. Congratulations go to first place winner of the maintenance and light repair competition Carter Smith (Warren County Technical School) and first place winner of the automotive service technology competition Yaseen Williams (Burlington County Institute of Technology - West Hampton). Special thanks go to the generous sponsors that helped make the event a success: Toyota, Ford, Subaru, Universal Technical Institute (UTI), Milwaukee Tools, Snap-on Tools. Throughout the day of the competition, a mini career fair was conducted, and each participating student received a goody bag.
Winning students will compete in the National SkillsUSA Competition in Atlanta, GA in June.
Congratulations to this year’s winners:
Collision Repair Competition
First place: Jaedon Leon Elizabeth High School
Second place: Jon Ferry Camden County Institute of Technology
Third place: Lucas Krumpel Santos Elizabeth High School
Mechanical
Competition
First place (maintenance and light repair competition): Carter Smith Warren County Technical School
First place winner (automotive service technology competition): Yaseen Williams
Burlington County Institute of Technology - West Hampton
PHOTO CREDIT ALICIA FIGURELLI
Koplin Auto Body’s Adele Rivas Recognized as an Automotive Industry Leader
Adele Rivas is on a mission to empower others in the automotive world. Her determination and hard work has carried her from body shop secretary to successful body shop owner, proving that having a strong vision can take a woman quite far in an industry otherwise noted as male-dominated.
Her story began with a simple quest to land a job in order to afford a place to live. That initial goal – and every single step she’s taken since – has been a journey of perseverance toward entrepreneurship and leadership that has not gone unnoticed.
Last month, the owner of Koplin Auto Body (Elizabeth) was recognized with the “Outstanding Contribution and Leadership in the Automotive Industry Award” by the Hudson County Latin American Chamber of Commerce.
As part of her recognition, the Chamber stated, “Beyond her success, Adele is deeply committed to
empowering others, often investing in her employees’ education to help them build a better future. Her story is a testament to hard work, resilience and breaking barriers in the automotive industry.”
“I was looking for work, and someone told me about a business owner who needed someone who knew Quickbooks,” relays Rivas of her first interaction with the body shop world back in 2001. “I wasn’t sure what Quickbooks was. I never liked school; I wasn’t interested in going to college. I took the interview, went to Best Buy, bought a CD about the program and spent the entire weekend learning. When Monday morning came, I served coffee, learned how to create job numbers and took care of Quickbooks. That’s how I started my journey.”
Rivas would take on much more than Quickbooks. She learned how to deal with the insurance companies and how to listen to customers’ issues, basically managing the entire operation and learning what it’s like to be an owner of a body shop. Rivas welcomed every opportunity to learn, often staying after clocking out to watch the technicians work on vehicles, apply Bondo and mask cars in the paint booth, despite being made to feel like “a female shouldn’t be in the shop.” She held tight and “sat there every night watching, learning and earning their respect.” The technicians wound up taking her under their wing, and soon, she was assisting by holding the side of a bumper, learning how to use mig welders and understanding the mechanics of a car.
“I began to love the industry as I was managing and learning about it at the same time,” she reflects.
Rivas moved on from Koplin Auto Body when she realized the owner, who was “like a father to me,” had sons of his own working in the business. “I knew that he had to give his kids a chance.”
She went to work for another shop owner “who recognized my potential” and saw the benefits she was able to bring to his operation. Rivas went on to successfully manage the multi-shop operation, managing KPIs, creating a parts department and overseeing everything. Rivas calls the experience “a blessing. I will always and forever be grateful to that owner for the adventure he allowed me to touch. He actually showed me the things I needed to know, and
by ALANA QUARTUCCIO
I would have never had that opportunity had I not left Koplin Auto Body.”
As it would turn out, Koplin Auto Body was not meant to be her past – it was in the cards to be her future.
Upon his retirement, the owner of Koplin Auto Body reached out to tell Rivas he believed she was the right person to take over the business. “I told him I didn’t have the money. He told me not to worry and to pay as I go. And I did. As of January 14 of this year, I paid him the last of it, and I own everything in my four walls. I’ve been the owner since 2017, creating the masterpiece that I have here in Elizabeth.”
Rivas sees the award as coming from her mission to see to it that others realize their own potential and that various opportunities exist in the auto body industry for everyone – no matter their gender, culture or what skills they possess.
“I’ve seen what this industry has to offer. My mission is to address other females to help them understand that there are multiple areas in this industry where they can become a professional. Not everyone has to go to school. My mission is to advocate for this. The reason they gave me this award is because I empower others who don’t envision themselves doing these things, but they actually can. I give keynote speeches throughout the year, and I use this industry as an example because it struggles with a lack of employees. This industry doesn’t advocate itself the way it should, and many don’t realize that we can set them up with a job that they can be proud of.”
Although most of the talk out there focuses on finding technicians, Rivas insists “there are so many opportunities in the body shop.” In fact, her employees at Koplin Auto Body were trained from within as she prefers to “get them raw.” She attributes much of the success her shop enjoys to being the “only Latin Hispanic woman owner in the area,” and she hails from Elizabeth where her shop is based. The shop is I-CAR Gold and her technicians are I-CAR Platinum certified. They have a large array of OEM certifications. Her team also includes a CSR, two accountants, one painter and two preppers.
“We all assist each other,” she says of their teamwork. “We are trained to look at this shop as a
soccer field.
“I call myself the vision within,” Rivas emphasizes her goal to spread the word about what she was able to learn and achieve, so others can realize that the body shop world is “no longer a place where one will get their hands dirty and one’s husband won’t want them to work there, or they won’t be seen as a professional or a place where one will die without benefits because we just are so much more than that.”
She’s working with Thomas A. Edison Career and Technical Academy in Elizabeth and other area schools, as well as the Hudson County Chamber of Commerce, as part of her mission.
“People need a [work]place where they can feel comfortable and what better place than the auto body industry where one can be their own, with their own style. I always take that into account, and I put that in my platform.”
“I’ve been blessed to own [a body shop] and to be able to share my strength with others who may be sitting with the view I had when I was just looking for a place to live.”
Ocean County Vocational Technical School
As auto body shops continue to face a workforce shortage, some collision repair instructors report a lack of interest in their programs, but that’s not the case everywhere!
Ocean County Vocational Technical School’s (OCVTS) ASEcertified auto collision course receives more interest than it can handle. The school offers two daily classes with capacity of 24 students in each class, but “we have over 100 students on a waiting list because so many kids are interested in being here,” shares OCVTS Collision Repair Technology Instructor Mike Lundin.
“We’re one of the only sharedtime programs in the state, meaning students attend a regular high school and then get bussed here for a two-hour session before being
returned to their full-time school,” he explains how his program is different from other collision education programs.
After 22 years of teaching, Lundin has seen a lot of changes in how students respond to learning the skills needed for a collision repair career. “It’s a different world now. When I first started teaching, students often had some kind of background in cars; some of their parents even did this for a living. About 10 years into my educational career, this shifted, and we slowly started to enter the ‘computer age’ where most students’ parents worked in the IT field. They had no idea how to use a screwdriver or wrench, but watching movies, like Fast and Furious, sparked their interest in learning about cars. That slowed us down a bit because their education began at the ground floor with an introduction to those basics before I could actually teach them collision repair and welding skills.”
Although these students are less “ability-savvy,” they are much more tech-savvy than older generations. “They were basically born with iPads in their hands, and that knowledge offers some pros and cons since today’s
vehicles are basically mobile computers,” Lundin reflects. “The car’s centralized computer handles basically everything, so familiarity with technology plays a large role in repairing them. It doesn’t always require a hands-on approach like in the past, but students still need to learn skills like fabrication and painting.”
Students spend two years learning entry-level skills in class at OCVTS, but it’s incredibly beneficial for those skills to be supplemented by on-the-job training, so near the end of their first year, students are eligible to go work in a shop. Lundin uses his network to find employment in shops local to each student to ensure they’re able to get to work. “My intention is to send every kid out to work, but some
find that this career path just isn’t for them. In a class of 20, we may have three or four who are capable of doing this for a living, whereas we used to have five that continued in collision.”
Matching the right students with the right employers is one of Lundin’s biggest challenges. “When I place these kids in shops, I want to choose the right students – someone who shows up and wants to work, who wants to learn – yet I often find that the shop is a big part of the problem. They hire these students, but they don’t want to invest time in teaching them anything. They send them on errands or assign them tasks like cutting cardboard or taking out the trash. The same shops that complain they don’t have enough employees are unwilling to do their part to mold future employees into what they need. It’s sad when I send a good student out to a job and worry that I’m lying to them about what a great career they can have in collision repair.
“Don’t get me wrong; students
can have great experiences in shops when we find the right situation, but too often, I’m finding them discouraged from pursuing collision careers due to the lack of support they receive on the job,” he continues. “A lot of older shop owners just don’t understand that this generation is different than ours. They think they can just fire a kid and easily replace them, but they fail to realize someone’s potential and leave him or her disenchanted with this field – shops need these entry-level technicians, but they repeatedly turn them off from working in shops.”
And shops often fail to recognize that these students have plenty of other opportunities in the industry where they can use the skills they’re learning at OCVTS. Lundin is fortunate to have a strong advisory committee that meets twice each year to discuss expectations for the program and what the industry currently needs; however, the majority of participants are representatives from refinish manufacturers and tool companies. “They’re a huge support and always willing to donate the systems, tools and materials we need to educate our students. Our committee is great, but I’m always open to new members who are willing to offer their guidance and advice to improve our program.”
It’s also beneficial to the students when industry professionals come to speak to the
students. “They love to see new technology and compare it to the older technology we use, and that engagement proves to them that the industry does need them to come to work, that there is a place for them in collision repair.”
Students and presenters enjoy the results of these collaborations. “We get a lot of supply companies and refinish manufacturers who come in, so that gives the students a perspective on different avenues of employment,” Lundin notes. “It makes them feel important, and if they do wind up working in shops, they’ll remember those companies and often deal with them on a professional level, relying on their products.”
But just like when it comes to the advisory committee, body shops are often missing from this equation. “We really only have shops come in when they’re in desperate need of employees, so these shop owners just want to talk about their individual business and what they need; they don’t want to
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SCRS Pushes for Consumer Protection via SAFE Repair Act
The Society of Collision Repair Specialists (SCRS), Automotive Service Association (ASA) and the Alliance for Automotive Innovation (Auto Innovators) have come together on proposed landmark Right to Repair legislation that puts emphasis on consumer protection.
In late February, the independent repairers and automakers released the following statement, “The Safety as First Emphasis (SAFE) Repair Act guarantees independent repair facilities will continue to have the same ability to perform diagnostic and repair services as franchised auto dealers. The bill will give consumers confidence their vehicles are safely repaired, in well-equipped shops, by welltrained technicians using the repair information made available by automakers.”
“I’m really proud of what this proposed language represents, in that it addresses very real challenges independent repair businesses face in trying to serve their customer well,” shares SCRS Executive Director Aaron Schulenburg. “We’ve received very positive reinforcement from our state associations and a very diverse cross section of repair businesses, all of whom have said the same thing; essentially, ‘Thank you, it’s about time someone addressed consumer safety and choice.’”
The three organizations previously came together in July 2023 to establish an Automotive
Repair Data Sharing Commitment on behalf of vehicle owners, which “recognizes and reaffirms the belief that consumers should have access to safe and proper repairs throughout a vehicle’s lifecycle.” It also stated, “Independent repair facilities shall have access to the same diagnostic and repair information that auto manufacturers make available to authorized dealer networks.”
The SAFE Repair Act intends to build off that agreement.
A letter addressed to members of Congress on behalf of the proposed legislation expressed their shared commitment to ensuring that consumers have access to safe, proper and transparent vehicle repairs: “The collaboration between our organizations reflects a unified desire to advance consumer safety and choice while addressing the challenges and opportunities in today’s automotive repair landscape.”
The letter also stated: “While... existing frameworks have created a thriving and competitive repair marketplace, we understand the desire for a federal legislative solution that addresses evolving consumer expectations and technological advancements. That’s why our three organizations have come together to propose a new path forward – one that builds on existing protections while introducing additional measures to prioritize consumer safety and choice.”
Last Congress, policymakers considered the Right to Equitable and Professional Auto Industry Repair (REPAIR) Act. That bill mandated access to tools, data and information but was silent on a consumer’s right to ensure these were utilized to restore a vehicle’s safety systems or structure to full functionality. In fact, safety was
Running a collision repair shop is a tough gig –between contending with customers’ expectations, insurers’ demands and rising costs of, well, everything, many owners report struggles to turn a profit. Yet, for over a decade, consolidation has been ballooning forth in markets from coast to coast!
How did the MSO boom begin, and are there any indications of implosion?
Repairers first noticed an increase in consolidation in the late 1990s and early 2000s when Caliber, Gerber and Service King entered the market in California and Texas, purchasing independent shops and converting them to their brands. But beginning in 2013, more consolidators
have entered the scene yearly, even as the more established MSOs continue expanding their footprints.
In 2024, larger operators acquired over 450 locations, according to Focus Advisors’ “2024 Year in Review: Some Excel on a Bumpy Road.” The “Big Five” (Caliber Collision, Classic Collision, Crash Champions, Gerber Collision and Joe Hudson’s) added 319 shops last year, comprising more than $15.6 billion in annual revenue –approximately 30 percent of the industry’s market share. Add in the eight “Accelerators” identified in the report, whose $1.5 billion in annual revenue accounts for three percent of market share, and these 4,214 locations generated one-third of
market share in 2024.
“Consolidation began for many reasons, but it all comes down to money,” Laura Gay (Consolidation Coach) weighs in. “Financial investment entities recognize that collision businesses generate a lot of revenue, and as the industry has changed to focusing on becoming more efficient, they realize that one way to do that is by scaling the business. In a small shop, the owner wears many hats, but in a corporate structure, specific individuals can address the needs of multiple shops. With vehicles becoming more difficult to repair, shops must invest in expensive tools and equipment, and in a MSO environment, some of these can be shared across
multiple shops.
“At the same time, customers’ focus has changed from quality to speed and transparency,” she continues. “Insurers have also driven the MSO boom since a corporate structure allows them to have fewer points of contact, instead of communicating with 20 different shop owners, which allows them to control costs more. Add in labor shortages which make it difficult for independent shops to meet all of these demands, and the industry is ripe for consolidation.”
Still, the industry is very demanding, so what makes collision repair shops such an attractive acquisition, despite the many challenges faced by operators?
“Private equity continues to be attracted to the collision repair industry for several reasons,” Focus Advisors indicates, listing those reasons as “the increased complexity of the car parc [all registered vehicles in a geographic region] and a rising TCOR [total cost of risk] and a rising TCOR [total cost of risk], significant economies of scale, specialization opportunities, resilience in times of economic hardship and EBITDA [earnings before interest, taxes, depreciation and amortization] multiple expansion.”
“The collision industry is recession and internet proof,” suggests Michael LeVasseur (Precision Automotive Calibration Experts), who sold Keenan Auto Body to ABRA in 2015. “That was proven during the COVID-19 pandemic. Even when things were horrible and barely anyone was driving, cars still needed to be repaired. And those repairs require people – you cannot repair today’s complex vehicles at home. There’s also guaranteed money through the vehicle owner or the insurer…even if a shop doesn’t necessarily receive the amount requested, payment is coming from a source with reliable money. As far as dealing with short pays and other challenges, the investors don’t care about that. They hire people who deal with the business end; as long as they see money when they look through the peephole, they’re happy with the investment.”
Auto Body Association of Texas (ABAT) President Burl Richards, who sold three of his shops to Classic Collision last year, agrees. “The collision industry has a lot of cash flow, and typically, we get paid for services within 30 days. There’s also a lot of stability. Large MSOs know how to invest and manage their money differently than the typical shop owner who relies on the revenue for their personal income. Private equity firms have a lot of experience in the financial arena, and they know when something is profitable.”
The concept of “economies of scale” also plays a large role in creating a lucrative situation for MSOs. “With an expanded network, these companies can negotiate better deals with suppliers for parts, tools and equipment,” Gay adds. “They can also streamline administrative functions like billing, marketing and customer service, reducing costs and improving efficiency.”
“MSOs have more leverage with vendors and
insurers because of their volume,” LeVasseur acknowledges, but he also offers hopeful advice for independent shops. “There’s definitely a way to counter that. Smaller shops can still offer an occasional discount, but there comes a time when too much volume, too many discounts, is not a solution. Some of the larger consolidators are pushing back on the discounts they’ve been giving now because it’s impossible to sustain an environment where you’re fixing lots of cars for bare bones.”
This is exactly the situation that some consolidators have found themselves in. “If a MSO owns 1,000 shops and a particular insurer agrees to direct all their customers to those facilities in exchange for some concession, it’s common business sense to agree,” Gay notes, “But we all know insurers will continue squeezing everything they can, and some of these consolidators have had enough and are starting to push back.”
That’s not the only thing that’s changing in the consolidation world. While the vast majority of consolidators have been focused on DRP-centric acquisitions in the past, “Consolidators are just as diverse as human beings; they also have their own personalities,” Gay points out, explaining that some consolidators, such as VIVE Collision and Quality Collision Group, seek out shops known for high quality repairs and OEM certification.
MSOs tend to make acquisitions in waves, Gay explains. “They’ll converge on a specific market for a year or two until they develop that area. Once they’ve built up their footprint, they’ll move to the next market, then rinse and repeat. That means shop owners need to be aware of where this development is taking place. You can’t take your shop to market anytime – you want to sell it when the buyers are investing in your market to realize the maximum/best terms for the sale of your business. You only sell once; timing is key, and you do not want to leave money on the table.”
“It’s all about timing,” Richards agrees as he shares some thoughts on the process, “There are many layers and steps with definitive ebbs and flows. There are a lot of negotiations from day one when you agree to a price, until the end where you are negotiating until literally the last week or day before it’s official, but all-in-all, it was a very positive experience.
“Consolidation is here to stay, but with that being said, I wouldn’t be surprised if some of them don’t make it. Just like an individually-owned business, some are better at operating and managing than others. New players enter the market all of the time, but I still believe there is plenty of room for individual-owned shops as well. -Burl Richards
I still have other shops, but this sale allowed me to be able to take care of my immediate family, in the event that something happened to me. It also has opened doors for other opportunities for me.”
LeVasseur was very conscientious of timing when he decided to sell as well. “When I first began considering the possibility in 2012, experts indicated the peak time for consolidation in my market would be mid-2015, so I waited to get the most value out of the business.”
Before selling, he advises shops to prepare for the sale by organizing their books and making sure their process is replicable. “You need to have a proven production system and people who know that system. Your finances need to be in order.”
Selling his shops allowed LeVasseur to alleviate a lot of stress in dealing with the day-to-day operations, but there was a downside too. “They take over, and you don’t own it anymore. They start implementing their processes, and even if you don’t agree, you have to deal with it. The night of the sale is great; they deposit a large amount of money in your account, and that feels amazing, but over the next few days, you feel like someone ripped your kids from your arms. You’ve worked hard to build your business for years or even decades, and then BOOM! It’s over; it’s not yours anymore. You know what’s coming, but I wasn’t expecting how it would make me feel.”
That’s one of the main reasons Gay insists that no one should ever feel like they have to sell. “Sell your shop because you want or need to. Don’t do it because you feel like you’re being forced out. If
you’re struggling, there are solutions. Shops cannot be successful if you are running them the same way you did 20 or 30 years ago. You need to look at ways to become more effective by attending training, developing your own niche and figuring out what sets you apart from the competition. You should always be looking at how things are done today and how they’re going to change tomorrow. Be willing to put the work in and change, or you’ll have a very negative outcome. Complacency is the worst thing you can do in any business!”
It’s undeniable that consolidators are leading the charge for change, but will that continue to be the case…or is the MSO bubble destined to burst?
“Consolidation is here to stay, but with that being said, I wouldn’t be surprised if some of them don’t make it,” Richards indicates. “Just like an individuallyowned business, some are better at operating and managing than others. New players enter the market all of the time, but I still believe there is plenty of room for individual-owned shops as well.”
“The bubbles never burst; they just get smaller, go behind the scenes and then come back,” LeVasseur theorizes. “The industry sees periods of heavier trading at times, but more recently, there’s less of a market for smaller shops trying to get out. Consolidators are becoming more particular about the shops they purchase because those investments require a lot of effort for smaller returns. If anyone in that market is looking to sell to a MSO, I’d suggest joining a
Navigating Lease Agreements in Auto Repair Shop Transactions: Key Considerations for a Successful Transition
When purchasing an auto repair shop or body shop, one of the most critical factors to consider is the real estate where the business operates. If the buyer does not plan to purchase the property outright, they will need to either assume the existing lease or negotiate a new one. Understanding lease agreements is essential to ensuring a smooth transition and protecting the buyer’s long-term business interests.
Assumption of an Existing Lease vs. Signing a New Lease
In most transactions, the buyer will face one of two scenarios: either the landlord will require them to assume the existing lease, or the buyer will be expected to sign a new lease. While the logistics of these processes differ, the fundamental terms and considerations remain largely the same. Here are key aspects to keep in mind:
1. Premises and Location
• Occupancy: Does the shop occupy the entire building, or is it part of a multi-tenant commercial property?
• Neighboring Businesses: Are there complementary businesses nearby that could help drive customer traffic, or are there competitors in the same complex?
• Zoning Compliance: Ensure the property is zoned for auto repair or body shop use. Just
because a shop is currently operating there doesn’t mean it is compliant long-term.
2. Lease Term and Renewal Options
• If financing is involved, lenders typically require the lease term to match the loan term, often structured as a five-year initial term with renewal options.
• Some leases include a Right of First Refusal (ROFR), allowing the tenant to match any thirdparty offer to purchase the property. Beware of clauses that let landlords terminate the lease if the ROFR is declined.
3. Base Rent and Adjustments
• CPI Adjustments: Many commercial leases include annual rent increases based on the Consumer Price Index (CPI). It’s crucial to negotiate an annual cap to avoid unexpected hikes.
• Percentage Rent: Some landlords may request a percentage of sales in addition to base rent –be cautious and negotiate accordingly.
4. Additional Rent and Expenses
• Taxes: Most commercial leases require the tenant to pay a portion of property taxes. Clarify what percentage of these costs you’ll be responsible for.
• Base-Year Model: Some leases use a “baseyear” system where tenants cover increases in real estate taxes over an established base year. If assuming a lease, negotiate to reset the base year.
• Insurance: Auto shops carry unique risks. Ensure the lease’s insurance requirements align with your needs and industry standards.
• Repairs and Maintenance: Responsibilities for maintenance, from HVAC to parking lot repairs, should be clearly outlined. Some leases shift significant costs to tenants – negotiate these terms.
BY PETER TANELLA AND JOSHUA BAUCHNER, MANDELBAUM
5. Insurance Coverage
• The lease may require specific liability and casualty coverage levels. Have an insurance professional review these requirements to ensure they’re reasonable and cost-effective.
6. Damage to Premises and Termination Rights
• The lease should outline whether the tenant can terminate the agreement if the building suffers significant damage (e.g., from a fire or natural disaster). This provision protects the tenant from being liable for rent while unable to operate.
• Avoid lease clauses that allow the landlord to terminate upon sale of the property. Such provisions can disrupt business stability.
7. Subleasing and Assignment
• If you plan to eventually sell the business, a
permitted transfer clause in the lease can make the tansition easier.
• The lease should state that landlord consent for a lease assignment cannot be unreasonably withheld or delayed.
8. Indemnification and Legal Protections
• Seek mutual indemnification clauses to ensure both parties are protected in case of disputes.
• Consider negotiating an attorney’s fees provision, allowing the prevailing party in any dispute to recover legal costs.
9. Signage and Branding
• If signage is essential for customer visibility, negotiate pre-approval of your signage requirements.
continued on pg. 42
PRESIDENT’S MESSAGE
continued from pg. 10
and facility upgrades, the cost of doing business has skyrocketed. We’ve built the infrastructure to meet the demands of modern collision repair – but now we’re facing a drop in volume and downward pressure on rates. It’s a dangerous gap, and it’s widening.
The post-COVID world has added another layer of complexity. Driving habits have changed dramatically. More people are working remotely, commuting less and putting fewer miles on their cars. That means fewer opportunities for accidents. It’s not just anecdotal – it’s measurable. Add to that the economic unease many households are feeling; therefore, people are making different decisions when it comes to vehicle repair. Premiums are higher, deductibles are rising, and there’s real fear around filing a claim. Some customers are deferring repairs altogether. Others are trying to pay cash to avoid reporting a claim to their insurer. That’s a behavioral shift we haven’t seen before at this scale.
So, let’s take stock: fewer vehicles coming in, more expensive and time-consuming repairs, reduced reimbursement from insurers and higher operating costs due to necessary investments. That’s the landscape. And it’s forcing every shop operator to ask a hard question: How are we going to stay profitable
EXECUTIVE DIRECTOR’S MESSAGE
continued from pg. 12
(NEW AUTO BODY LICENSING LAW) MOTOR VEHICLES - REPAIRS - LICENSE AND PERMITS
P.L.2001, c.053 (A1957 3R) CHAPTER 53
C.39:13-4 Fine; refusal to grant suspension, revocation of license.
4. The director may fine or refuse to grant or may suspend or revoke a license of an auto body repair facility for any of the following acts or omissions related to the conduct of the business of the auto body repair facility:
f. Making appraisals of the cost of repairing a motor vehicle which has been damaged as a result of a collision through the use of photographs, telephone calls, or any manner other than personal inspection;
Now, I am not an attorney, but it certainly seems logical that if this is the law that the state has established to license and to govern the people that actually repair vehicles damaged as the result of a collision, then it certainly should be followed by insurers paying for such repairs.
in a world where everything costs more – but fewer vehicles are being repaired, and we’re getting paid less to fix them?
Some shops are already making adjustments: adopting new marketing ideas or diversifying into in-house ADAS calibrations, cosmetic and PDR work, while others are doubling down on DRP relationships or seeking out niche certifications. But not every shop has the volume, capital or geographic market to pivot that quickly. For many, the math just isn’t adding up like it used to.
This is the new reality. We’re not headed back to the collision industry of the early 2010s. We’re operating in an environment where fewer people are crashing, fewer are claiming and the cost to repair each vehicle is being scrutinized more than ever – by customers and carriers.
There’s still a future here – but it’s going to belong to the operators who are smart, efficient and bold enough to change. We have to create value where we can, maximize efficiency and advocate – relentlessly – for fair reimbursement
Because if the cars aren’t coming back the way they used to, we can’t afford to run our businesses the way we used to either.
Plus, in my opinion, the NJ-MVC and the NJ Department of Insurance should be stepping in to force insurance companies to follow this provision referenced above. To add to the reasoning that this provision should be enforced is that the vehicles on the roads today are designed to automatically avoid accidents and protect the passengers of a vehicle when an accident occurs. If certain repair guidelines are not followed and all of the damage is not discovered and repaired, the damaged vehicle will not perform as designed and people are much more likely to suffer severe injuries or die in subsequent collisions as a result. Photo estimates may miss damage that can only be discovered by the personal inspection of the damaged vehicle.
This nonsense has got to stop. Therefore, I am asking all state agencies to get involved and enforce the safe and proper repair guidelines that the manufacturers of vehicles have established. We will be talking to the appropriate people to bring this information to them and request their assistance in addressing these issues laid out in this article, and we will be reporting back on the results that occur, if any.
continued from pg. 21
tell these kids about the industry as a whole and encourage them with tales of how successful they can be if they work hard,” Lundin laments, suggesting, “A lot of OCVTS graduates are now working in shops as technicians and painters, and it would be really great if their
bosses would send them in to talk to my current students – they once sat in these seats, so they could really inspire students by showing how far they’ve come.”
And many of Lundin’s students do go far! “The most rewarding part of my job is hearing from a
student who has been working in the field for a few years and is now making a good living, so they’ve bought a house or a new car. Over the years, many of my students have invited me to their weddings; throughout their time in my class, a lot of them become like family, so it means a lot that they see things the same way and want to stay in touch. We even have a few past students who now work as instructors at our night school collision class.”
That type of success, though, is only possible when young collision professionals receive the support they need when they begin working in the field. “We’re dealing with a different society, and often, body shops are their own worst enemy – they want workers, but they don’t want to invest time into them. They need to take a different approach than they did in the past, they need to have patience, and they have to show that they care about their employees. Beginning a career in a shop requires a significant investment in tools, and students don’t want to put that money out if they can’t see a future in this field. They want to work, but if the shops aren’t matching their desire by helping them grow and cultivate the skills they’ve begun developing, they’ll leave and find an employer who does care – and tragically, that’s often in an entirely different industry.”
never addressed as a priority of the REPAIR Act – but it is a priority of the proposed SAFE Repair Act.
Just five days after the SAFE Repair Act was introduced, a bipartisan group of lawmakers reintroduced the REPAIR Act in Congress.
According to the independent repairers’ and automakers’ statement, “Automotive right-to-repair already exists in the United States. Vehicle owners can get their vehicle serviced in well-equipped shops by well-trained technicians anytime, anywhere and any place. This competitive marketplace is possible because automakers make all of the information needed to diagnose and repair a vehicle available to all vehicle repair shops. This means independent repair shops already have access to the same diagnostic and repair information as authorized dealers. As a result, roughly 70 percent of post-warranty work today is completed out of the automakers’ authorized dealer networks.”
“The reality is the collision repair industry isn’t expressing concerns about not having access to OEM repair information, or concerned that consumers are seeking out alternative parts and being forced to use OEM parts – this is really what the proponents are saying,” adds Schulenburg. “The pressures collision repairers ARE facing is that consumers want their vehicle repaired correctly, and we recognize the industry has access to the resources they need to accomplish that – but there are obstacles put in the way where consumers are penalized if they choose to repair their vehicle at repair businesses using all the information, procedures, tools and parts that are available to them.
“I think we’ve always felt like if there is a conversation about the ‘Right to Repair,’ it should really be a conversation about the right to receive safe, proper repairs. But it was also important to us to recognize that if we’re going to oppose other bills, it’s equally as important to bring productive and fruitful suggestions on how we can better address the real challenges facing the industry. We wanted to work with other repair groups and with the automakers and collectively present solutions on how we can do a better job to protect consumer choice and protect consumers’ right to have their vehicle repaired safely, following the information that’s already made available to the industry.”
The SAFE Repair Act includes:
• Affirmation of vehicle data access: Ensures consumers and independent repair shops have data needed to repair vehicles.
• Empowers consumers: Ensures consumers retain the right to decide where and how their vehicles are repaired.
• Prioritizes vehicle safety: Guarantees repairs are performed in accordance with manufacturer-produced repair procedures to restore vehicle safety systems and structural integrity.
• Offers part choices: Ensures consumers have a choice between original equipment manufacturer (OEM) parts and non-OEM repair parts.
• Protects non-OEM choices: Extends the same recall and safety protections to customers choosing non-OEM parts as currently available for customers choosing OEM parts.
• Enhances transparency: Requires disclosure of prior alterations or repairs for used vehicles.
• Promotes inspection programs: Supports periodic safety inspection and post-collision inspection programs to safeguard against unsafe or improper repairs. To read
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With adjustable features including a mechanical drop safety device, 3-step handle and slopes on both axes, operators can be confident of precise positioning. An extendable platform (adjusting from 1830mm to 2130mm) fits various battery sizes, but the lifting table’s versatility means it’s not just
limited to batteries; repairers can use this to lift, hold and store many heavy components in the repair process.
With approvals from Ford, Lucid and Rivian, this Mobile Battery Lifting Table is a solid investment, not only cutting down on time spent with manual labor but also making battery handling more efficient to improve overall productivity in the shop.
If you’re looking for a solution that combines safety, ease of use, and durability, this Mobile Battery Lifting Table is exactly what you need. The team at Reliable Automotive Equipment is ready to help with this and any equipment concerns you may have; please contact us today at raeservice. com to learn more about our array of collision repair products, training and support.
continued from pg. 31
franchise, ‘advantage network’ (like CCG or 1Collision) or working with colleagues in a similar situation to put a package together to make the sale more attractive. So, consolidation is changing, but private equity investors continue to enter the space, so I don’t see it stopping anytime soon.”
Gay concurs. “There are still lots of markets that need to be built out. Some of the more mature consolidators have built their footprint as far as buying up shops and are now looking at brown and green fields, which means taking existing buildings and converting them or building new shops altogether. Newer MSOs are full-speed-ahead on buying up shops. So, who is doing what is changing, but they all seem to be a lot more methodical about their purchases now.
“Will consolidation slow down or even stop?” she ponders. “Possibly at some point, but it’s definitely not going to happen in the next three years. I’d have to reassess at that time, but for now, I’m confident the bubble isn’t going to burst anytime soon.”
Why Join WIN?
WIN offers education, mentoring and leadership development opportunities to build critical skills for success in the collision repair market.
• Local/Regional Networking Events
• Annual Education Conference
• Educational Webinars
• Mentoring Opportunities
womensindustrynetwork.com
• Scholarship Program
• School Outreach Program
• Most Influential Women (MIW) Award
That’s because print advertising works. Especially when it’s connected to a powerful trade association.
For over 30 years, Greco Publishing has partnered with the best of the industry to provide trade associations a voice, and to give advertisers a direct outlet to reach buyers.
Today’s shop is inundated with solicitations; advertising with Greco Publishing breaks through the noise to align your company as an association ally, and get you in front of your next customer.
ARANJ
Board of
Directors
David Yeager - EL & M Auto (800) 624-2266 / elandmauto@aol.com
Ed Silipena - American II Autos (609) 965-0987 / esilipena@yahoo.com
Norm Vachon - Port Murray Auto (908) 689-3152 / portmurrayauto@yahoo.com
Dillon Rinkens - East Brunswick Auto (732) 254-6501 / ebautonj@comcast.net
ARANJ Officers
President - Rodney Krawczyk Ace Auto Wreckers (732) 254-9816 / aceautonj@comcast.net
1st Vice President - Daryl Carman Lentini Auto Salvage (908) 782-4440 / darryl@las-parts.coms
2nd Vice President - Mike Ronayne Tilghmans Auto Parts (609) 723-7469 / tilghmans@snip.net
Past President - Bob Dirkes Dirkes Used Auto Parts (609) 625-1718 / dirkesauto@gmail.com
ARANJ
The Automotive Recyclers Association of New Jersey
Wharton Insurance Briefs
Several of our clients have experienced workers’ compensation audits whereby the auditor reclassified the employee(s) in a higher-rated classification, causing an additional premium. We have disputed some of these audits on behalf of our clients. We’ve won some and lost some. The NJ Workers’ Compensation Rating and Inspection Bureau (NJCRIB) publishes a manual each year, outlining the classifications, rules and rates for those classifications. It is very important that you classify your employees properly as incorrectly classifying them could cause legal problems. Misclassifying employees could result in an insurance fraud indictment.
When you’re reviewing your insurance, make sure you discuss your employees’ classification for your workers’ compensation coverage. If you have any questions, please contact me.
continued from pg. 33
• Confirm whether there are restrictions on outdoor banners, pylon signage or window decals that could impact business visibility.
10. Other Key Lease Considerations
• Quiet Enjoyment: The lease should ensure that you can operate without interference from the landlord or other tenants.
• Landlord Representations: Request assurances that the property complies with all local codes, environmental regulations and ADA requirements.
• Subordination Clause: Protect your lease from being overridden if the landlord’s lender forecloses on the property.
• Default and Mitigation: Some states, such as New York, do not require landlords to mitigate damages if a tenant defaults. Negotiate language requiring the landlord to seek a replacement tenant.
By carefully evaluating these lease terms, auto shop and body repair business owners can safeguard their interests and facilitate a smooth transition. Consulting with experienced attorneys at Mandelbaum Barrett PC ensures that potential risks are identified and mitigated, setting the foundation for long-term business success.
NJA
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