New Jersey Automotive November 2015

THE OFFICIAL PUBLICATION OF THE ALLIANCE OF AUTOMOTIVE SERVICE PROVIDERS/NEW JERSEY (www.AASPNJ.org) AND THE AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY (www.ARANJ.org)

TM

November 2015 $595

REMOTE ESTIMATES:

An Unfortunate Situation www.grecopublishing.com

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New Jersey Automotive | November 2015 | 5

P.O. Box 734 Neptune, NJ 07753 EXECUTIVE DIRECTOR Charles Bryant 732-922-8909 / setlit4u@msn.com 2013 - 2015 OFFICERS PRESIDENT Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com COLLISION CHAIRMAN Dave Laganella, Peters Body and Fender 201-337-1200 / petersbandf@gmail.com 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 Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net Sam Mikhail, Prestige Auto Body 908-789-2020 / mikhail@goldcar.com

Ted Rainer, Ocean Bay Auto Body 732-899-7900 / trainer@verizon.net

Anthony Sauta, East Coast Auto Body 732-869-9999 / ecabofnj@aol.com

Randy Scoras, Holmdel Auto Body 732-946-8388 / randy@holmdelautobody.com

Anthony Trama, Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com BOARD ALLIED Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com

Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com PAST PRESIDENT ATTENDING Tom Elder, Compact Kars 609-259-6373 / compactkars@aol.com

CONTENTS

VOLUME 45, NUMBER 11 | November 2015

10 OUT OF BODY (AND MECHANICAL) EXPERIENCES 12 PRESIDENT’S MESSAGE 16 EXECUTIVE DIRECTOR’S MESSAGE

20 COLLISION CHAIRMAN’S MESSAGE 22 I-CAR CALENDAR 66 NJA ADVERTISERS’ INDEX

VENDOR SPOTLIGHT by Joel Gausten 24 Quality in the Millions: Flemington Audi/Volkswagen/Porsche Scores in Wholesale

NORTHEAST® SPOTLIGHT by Jacquelyn Bauman 28 Early Vendor Interest Points to Most Successful Show Yet

LOCAL NEWS 30 Aluminum Meetings Give AASP/NJ Members a Glimpse into the Future

by Jacquelyn Bauman

32 Final 2015 Cars and Coffee Breaks Records

NATIONAL NEWS by Joel Gausten 36 Emissions Scandal Overwhelms Volkswagen LEGAL PERSPECTIVE 40 Getting a Divorce?

by Mitchell Portnoi, Esq.

INDUSTRY UPDATE by Jacquelyn Bauman 44 “Smart Cards:” How Will They Affect Our Industry?

FEATURE by Joel Gausten 48 Rates and Reality: What a Changing Insurance World Means for You

COVER STORY by Jacquelyn Bauman

54 Remote Estimates: An Unfortunate Situation

AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY 57 Wharton Insurance Briefs PUBLISHER Thomas Greco (thomas@grecopublishing.com) DIRECTOR OF SALES Alicia Figurelli (alicia@grecopublishing.com) EDITOR Joel Gausten (tgpjoel@verizon.net)

MANAGING EDITOR Jacquelyn Bauman (jacquelyn@grecopublishing.com) ART DIRECTOR Lea Velocci (lea@grecopublishing.com)

OFFICE MANAGER Donna Greco (donna@grecopublishing.com)

CONTRIBUTING EDITORS

Charles Bryant • Tom Greco • Jeff McDowell Mitch Portnoi • Dave Laganella • Ron Ananian

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

www.grecopublishing.com

NO BRAKES by Ron Ananian 58 The Price of Admission

AASP/NJ NEW MEMBER SHOP PROFILE 60 The Wreck Room Collision

by Joel Gausten

The Alliance of Automotive Service Providers/New Jersey Joe Amato, Sr. Ron Ananian Jim Bowers Charles Bryant Don Chard Guy Citro Ed Day Dave Demarest

HALL OF FAME

Tom Elder Bob Everett Thomas Greco Rich Johnson Wes Kearney Nick Kostakis Jim Kowalak Joe Lubrano

Michael Lovullo Sam Mikhail Ron Mucklow George Petrask Russ Robson Jerry Russomano George Threlfall

Cynthia Tursi Lee Vetland Paul Vigilant Rich Weber Brian Vesley Glenn Villacari Stan Wilson

NEW JERSEY AUTOMOTIVE is published monthly and is sent to AASP/NJ and ARANJ members free of charge. Subscriptions are $24 per year. NEW JERSEY AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of NEW JERSEY AUTOMOTIVE are copyright © 2015 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Cover and Images courtesy of www.istockphoto.com.

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OUT OF BODY (AND MECHANICAL) EXPERIENCES

My Baby Wrote Me a Letter

by THOMAS GRECO, PUBLISHER

On the day I am writing this, Playboy has announced that they are no longer going to feature nudity in their magazines. Mostly because, in the words of their CEO, “You’re now one click away from every sex act imaginable for free.

And so it’s just passé at this juncture.”

No more Playboy centerfolds? Another American tradition laid to rest by the Internet. Now, before you accuse me of being an old guy who’s afraid of technology, allow me to brag that I was the first person I knew to have a Mac computer in 1984. I was also the first person I knew who had an iPod, an iPad, a DVR, etc. We were also one of the first publications of our kind to put full issues on our website.

Clearly, I am no technophobe. But dammit, there are lots of things that technology has ruined or destroyed that I miss.

Reading about Playboy reminded me of one of those – writing letters.

I think the very first letter I ever wrote was the same as most of you. You know the one I’m talking about…the one

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to Santa Claus. Now, I don’t know about you, but I never really got a reply from the big man. But come Christmas Day, I assumed he must have received my letter, since most of what was on my list was usually there. Between that time and college, I didn’t have time to write many letters. (I was too busy trying to find my brothers’ Playboys.) Once I got to college and learned that I had a little bit of talent for piecing together semi-intelligent words, I began writing letters on a pretty frequent basis. Nothing special, mostly to girls I liked or relatives who lived in other places.

The first truly meaningful letter I remember writing was actually the result of a bet. It was also a little risqué, as they say. In the early ’80s, with the explosion of videotape rental stores, it really wasn’t that difficult to view adult films – especially since I had two older brothers! Being a young, studly man, I became quite infatuated with an actress named Kay Parker. One day, I just happened to come across a magazine that listed the actual addresses where

you could write to some of these stars. Needless to say, when I saw Kay Parker’s, my brother dared me to write her a letter. Thinking that I had nothing to lose, I did. If I recall, it was a very proper letter, stating how much I admired her acting and the like. I mailed it and never gave it a second thought.

That is, until a few weeks later when a letter postmarked “Marina del Rey, CA” came in the mail. Kay Parker responded! You know how I knew it was from her? Half the words were misspelled. Seriously. But still! It actually was very nice. She was very thankful and appreciative. Believe it or not, we became pen pals after that and corresponded for the next decade. When my brother asked me who I wanted at my bachelor party, I said Kay Parker. Well, that didn’t happen. But she did call me about a week before my wedding to wish me luck. My wife was not thrilled. (Nor will she be when she reads this.) I hadn’t really thought about Kay Parker for a long time until I read last year that she was homeless. She had stopped making films in the mid ’80s and became a faith counselor. At 70, she unfortunately experienced severe financial difficulties, which forced her out of her home. There was a fund for her, and I donated a small sum. She emailed the people who donated, thanking them. When I received my email, I asked her if she remembered me. She said she did, but I’m not sure. Last I

checked, she had found a home and was back in counseling. Good for her.

My next memorable letter was to musician Willy DeVille in 1985. I’ve told this story before in these pages, so I’ll just briefly recount it. After he walked off the stage at a show in Asbury Park saying, “There are a thousand other places I’d rather be,” I wrote him a letter saying how disgusted I was with his performance. A few weeks later, his wife called my office and berated me for 15 minutes. Keep in mind, this was a guy who was world-famous at the time. I was too surprised to reply to the wife, but about a year later I read he filed for bankruptcy. I chopped up one of his records, wrapped it in a dollar and sent it to him. Unfortunately, his wife killed herself in 2001 and Willy died of cancer in 2009.

I just finished reading a biography of him; it basically said he was an ass to everyone he met. I don’t feel so bad.

The next letter was another one that I never expected a reply from. I am a huge New York Giants fan, and one of my favorite all-time players was Phil Simms. When the Giants cut Simms in 1993, I fired off an angry letter to Giants owner Wellington Mara. Mara’s family has owned the Giants since 1925. He had been there from the very start. You can imagine how many letters the owner of a team like the continued on page 65

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PRESIDENT’S MESSAGE

A NEW ERA OF “BAD” CHECKS

by JEFF MCDOWELL

I’d like to share a conversation I had recently with a fellow shop owner about a hypothetical situation that could seriously affect our industry.

I’m doing this to not only spread awareness, but also to get opinions

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throughout our industry to see how others might handle this interesting dilemma.

Say at the conclusion of a repair, a customer pays you with a check they had received from their insurance

company following the collision. The customer presents the check to you, endorses it over to you, receives the completed vehicle and drives away.

You then deposit the check and consider the job complete…until a couple of days later, when the bank calls.

According to the bank, the check you tried to deposit into your business account had already been deposited and posted. It turns out that the customer had deposited the check into their personal account using the bank’s mobile app, then used the same check to “pay” for the job. If you’re not familiar, many banks these days utilize “mobile check depositing” in their apps, which alleviates the need to visit a teller or even an ATM. By simply taking a photo of the front and back of the check on their phone, then uploading it to the bank through the app, customers can deposit checks.

I’m not sure how one would handle that sort of situation. You can’t go to the insurance company; they issued the check correctly to their insured.

You have no leg to stand on with the bank, since the check correctly posted after the customer deposited it. And of course, the customer is in the wind, so there’s no real recourse there. Until you’re able to contact the customer and hopefully fight for what’s rightfully yours, you essentially did the job for free.

I’m putting forth this hypothetical situation to let others know that it might be happening soon; unfortunately, I honestly don’t know how we’d be able to avoid it. It’s not like you can call the insurance company and ask for the status on a check they issued. Not only would they never disclose information about an insured to a third party, but imagine the amount of time you’d lose dealing with them if they were actually able to give this to you. And you can’t verify the check with the bank for the same reason. Do you stop taking checks as payment? Place a hold on continued on page 65

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EXECUTIVE DIRECTOR’S MESSAGE

CHANGE IS FINALLY

POSSIBLE

For the first time in a long time, I can say with confidence that things are looking up. Now, I am not saying that the problems facing the collision industry are solved, but we are now closer than ever to resolving many of the issues that have plagued us.

For years, I have written articles and tried to encourage the collision industry to document the occurrences of improper conduct by those insurers that have simply refused to negotiate in good faith and pay shops a fair and reasonable amount to properly repair vehicles. Some shops made the effort and sent documentation of such improper activity, but most have just rolled with the punches and pretty much accepted whatever the insurers have been willing to give them. As a result, the Labor Rates that insurers pay today are less than what lawnmower and bicycle repair shops charge, even though cars often cost upwards of $10,000 to $20,000 to repair.

Despite this, few collision shops stood up and fought back. For the life of me, I could not understand why.

Well, I think I have finally figured it out. First, the collision industry is made up of a lot of passive people who truly just want to repair damaged vehicles, live a good life and make a fair and reasonable profit so they can pay their bills and feed their families.

A lot of these shop owners are actually prior technicians who worked

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their way up to becoming shop owners because they were good with their hands. But now, they are forced to learn how to run and manage a business rather than continuing to fix cars. Additionally, they are now faced with having to fight with insurance companies to get paid for what they do.

When an insurance company hires a new employee who will be writing estimates and negotiating the cost of repairs, it is likely that the first thing they do is send that hire to school and put him or her through rigorous training. They actually teach that estimator how to say no, and it seems as though most shops and managers have surrendered to this method. Maybe this is because shop owners have tried to address problems on behalf of their customers and ended up going nowhere time and time again. For some reason, many shop owners seem to think that they have to take on their customers’ battles or problems (such as not getting paid from an insurer for what it takes to repair their vehicle safely and properly) when it is the customer who pays the premium. I often hear shop owners say things like, “I can’t tell my customer that they are going to have to pay more than their deductible to get their car repaired because their insurer will not pay the full cost to repair their vehicle.” HELLO? Since when did the shop owner adopt his or her customer and become responsible for the difference between what the insurer pays to repair a vehicle and what it actually costs to do it right? I think I now know where the missing link is in this equation.

For some reason, many shop owners actually think that an insurer that comes out to see a damaged vehicle owes the shop what it takes to repair it. In reality, the insurance company doesn’t owe the shop

by CHARLES BRYANT

anything - the carrier owes the insured or vehicle owner. The insured or owner then owes the shop. Too many shop owners have this mixed up. As a result, repair professionals across the country are absorbing the difference between what an insurer pays and what it actually takes to repair the vehicle. The reasoning is that they are afraid that if they tell their customer that he or she has to pay this amount, they will lose him or her. Practices like this are what got us to where we are today. The problem is, the shop is not a party to the contract of insurance. Therefore, insurers can do almost anything they want to the shop and suffer little or no ramifications. So, what’s the answer?

Shops must change their ways.

Like it or not, change is inevitable. Some shops have finally realized that they must fight back or die. As a result, collision shops have finally figured out a way to stop absorbing the difference. There are lawsuits popping up against numerous insurance companies across the country, and shops are winning. This has already started to have a positive effect. In recent months, more and more insurers have been willing to negotiate higher rates. The results from surveys are providing shops with the documentation they require to support their positions on Labor Rates and the need for certain repair procedures that cannot be ignored.

Because the collision industry has allowed things to get so bad, it is going to take a lot of hard work to turn things around. The changes that are needed cannot be accomplished by a few. It is going to take persistence and a united effort to keep this progress moving in the right direction.

There are people in trade associations across the country working hard to correct the many problems mentioned in this message. The movement has

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EXECUTIVE DIRECTOR’S MESSAGE already been started by a few who have jumped out in front of the bus, so to speak.

My purpose for writing this is to attempt to send a message to the entire industry. Now is the time to come together and support each other. “United we stand, divided we fall” has never been a stronger statement than it is right now. This is the first time in many years that I can honestly say that change is starting to occur. I am begging for the collision

industry to embrace this opportunity and join together to make things better. If you are a collision shop reading this message and you are not a member of a trade association, I urge you to stop what you are doing and go sign up today. If anyone is interested in joining AASP/NJ or just wants to discuss anything mentioned in this piece, I can be reached at (732) 922-8909.

NJA

Welcomes our newest members: Heavenly Bodyworks Woodbridge Key Auto Body Matawan Freehold Collision Freehold Cross Town Collision New Brunswick County Line Auto Body Howell

Mike Lovullo Distributor for

and

Micro-Mix Paint and

Materials Calculator in Bergen, Passaic, Essex and Hudson Counties in New Jersey.

CALL Office: (973) 696-3176 or Cell: (201) 452-0987 18 | New Jersey Automotive | November 2015

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COLLISION CHAIRMAN’S MESSAGE

DON’T GIVE UP HOPE

by DAVE LAGANELLA

If you haven’t already heard, the Multidistrict Litigation that has had the industry buzzing for a while recently had its lead case dismissed. I know

that for a lot of people, this is the last straw. But when you are literally up against City Hall, you can’t stop the fight. As frustrating or hard as it may

seem (or how difficult it may be), it’s the only direction we can go in to get the rate changes and the concessions we need to stay in business and be successful.

When the fight seems hard, that’s when you need to turn to AASP/NJ. We are always working as an association to improve the industry. If you are considering stepping up to the plate and entering into a legal battle with an insurer, you are not alone.

Contact AASP/NJ Executive Director Charles Bryant. We might just have something that can help you in your battle. We are gearing up to help out our membership in the best way we can into the future. To find out more about the association’s projects or initiatives, contact one of your Board members and ask to come to a Board of Directors meeting, held the first Tuesday of every month. We would love to see you there.

NJA

LET US TURN THEM AROUND! Contact New Jersey Automotive Sales Director Alicia Figurelli

973.667.6922 ALICIA@GRECOPUBLISHING.COM 20 | New Jersey Automotive | November 2015

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CALENDAR

2015 Ford F-150 Structural Repair Training Course (FOR06-2) Keystone Automotive, Palmyra Waterborne Products, Systems and Application Virtual Classroom Full-Frame Partial Replacement Keystone Automotive, Palmyra Vehicle Technology and Trends 2016 Keystone Automotive, Palmyra Aluminum Exterior Panel Repair and Replacement Somerset Vocational High School, Bridgewater Suspension Systems Virtual Classroom

NOVEMBER 12

Color Theory, Mixing Toners and Tinting Keystone Automotive, Palmyra

NOVEMBER 13

Corrosion Protection Reliable Automotive Equipment, Belford Vehicle Technology and Trends 2016 Reliable Automotive Equipment, Belford

NOVEMBER 14

Problem Solving for Workflow Changes Virtual Classroom

NOVEMBER 2

Sectioning of Steel Unitized Structures Compact Kars, Clarksburg Overview of Cycle Time Improvements for the Collision Repair Process Virtual Classroom Matching the Repair to the Team Virtual Classroom

NOVEMBER 4

2015 Ford F-150 Structural Repair Training Course (FOR06-1) Holiday Inn & Suites, Parsippany 2015 Ford F-150 Structural Repair Training Course (FOR06-2) Holiday Inn & Suites, Parsippany

NOVEMBER 5

Aluminum Exterior Panel Repair and Replacement Keystone Automotive, Palmyra Advanced Steering and Suspension Systems Damage Analysis Keystone Automotive, Palmyra

NOVEMBER 9

Automotive Foams Comfort Suites, Mahwah Adhesive Bonding Keystone Automotive, Palmyra Plastic and Composite Repair Keystone Automotive, Palmyra Structural Straightening Steel Virtual Classroom

NOVEMBER 10

Rack and Pinion and Parallelogram Steering Systems CollisionMax, Pennsauken 2015 Ford F-150 Structural Repair Training Course (FOR06-1) Keystone Automotive, Palmyra

NOVEMBER 11

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Steel Unitized Structures Technologies and Repair Reliable Automotive Equipment, Belford Plastic and Composite Repair Pennco Tech, Blackwood Collision Repair Overview for the Chevrolet Corvette Z06 Virtual Classroom

NOVEMBER 17

Squeeze-Type Resistance Spot Welding Metropolitan Car-o-liner, Mahwah Color Theory, Mixing Toners and Tinting Reliable Automotive Equipment, Belford Hazardous Materials, Personal Safety and Refinish Safety CollisionMax, Pennsauken Color Theory, Mixing Toners and Tinting Pennco Tech, Blackwood

NOVEMBER 18

Plastic and Composite Repair Reliable Automotive Equipment, Belford Squeeze-Type Resistance Spot Welding Pennco Tech, Blackwood Steering and Suspension Damage Analysis Virtual Classroom

NOVEMBER 19

Hazardous Materials, Personal Safety and Refinish Safety Comfort Suites, Mahwah Measuring Reliable Automotive Equipment, Belford Welded and Adhesively Bonded Panel Replacement Virtual Classroom

NOVEMBER 24

Aluminum Exterior Panel Repair and Replacement Pennco Tech, Blackwood Collision Repair for Toyota, Lexus and Scion Vehicles Pennco Tech, Blackwood

NOVEMBER 30

For more information, visit www.i-car.com

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VENDOR SPOTLIGHT By Joel Gausten

Quality in the Millions: Flemington Audi/Volkswagen/Porsche Scores in Wholesale

If you want to know if a wholesale parts provider is able to get you what you need, a good first clue to keep in mind is how long that dealer has been in business.

Founded in 1976, the Flemington family of dealerships has solidified its reputation in the New Jersey automotive industry through incomparable customer service. The chain is comprised of 17 franchises carrying Ford, Lincoln, Nissan, Porsche, Volkswagen, Audi, BMW, GMC, Buick, Chevrolet, Chrysler, Dodge, Jeep, Ram Trucks, Infiniti, Subaru and Cadillac. Currently boasting $6.5 million in annual parts sales to the Garden State auto body community, Flemington Audi/Volkswagen/Porsche exemplifies the high level of quality and professionalism that has kept the Flemington name at the top for nearly four decades.

Under the guidance of Parts Manager Rich Muir, the Flemington Audi/Volkswagen/Porsche wholesale operation provides products from its $950,000 inventory to a 60-mile radius via 23 delivery trucks. Muir is joined in the department by seasoned parts veterans Brian Temples, Paul Hunt, Fred Laschi, Brian McEvoy and Tim Arencibia. With the parts team working to ensure that shops receive quality parts with every order, Flemington Audi/Volkswagen/Porsche maintains strong customer outreach thanks to Wholesale Parts Coordinator Christine RizzoDonaruma and Wholesale Parts Representatives David Perez (who recently joined the operation following a successful run at Downs Ford) and Pete Rifkin. Together, these industry pros create one of the strongest wholesale teams on the east coast. The dealership’s momentum is maintained by the active support of owners Steve Kalafer and Byron Brisby.

Since our previous profile on the dealer in early 2014 (“Here to Stay: Flemington Audi/Volkswagen/Porsche Thrives into the Future,” NJA, March 2014), Flemington Audi/Volkswagen/ Porsche has added at least $100,000 in parts to its in-house inventory and expanded its delivery staff. Shipping/receiving personnel still start their day at 4am, while the operation’s size ensures that customers get all-important parts by the next day when other dealers can’t accommodate these requests due to cutoff times. While some competitors are struggling to merely maintain their current sales, Flemington Audi/Volkswagen/Porsche is in a state of constant growth.

“I attribute our success to parts availability and the people on the phones,” offers Muir. “We’re very detailed and very thorough; we follow up on everybody’s order. We have a great bunch of people on the road; everybody loves our drivers.”

Customer retention at the dealership is also helped along by a popular loyalty program that offers annual rebates to shops that buy parts from a certain number of Flemington dealers, while a

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The Flemington Audi/Volkswagen/Porsche wholesale department is open 8am to 5pm, Monday through Friday (orders and deliveries) and 8am-4pm on Saturday (orders only). For more information, please call

(800) 216-5124.

special shop referral system awards auto body facilities that refer other businesses to Muir’s operation.

Like a growing number of dealers, Flemington Audi/Volkswagen/Porsche has strengthened its commitment to OEM parts by using CollisionLink/RepairLink for all three car lines. This presents shops with an alternative to having to use aftermarket or salvage parts in the repair process. Additionally, Volkswagen offers a strong price matching program, while Muir and his crew regularly go above and beyond in making sure their customers for the other automakers don’t have to settle for anything less than the best job possible.

“Audi and Porsche don’t have price matching [programs], but at times, we will go deeper into a discount to save that sale,” he says. “Volkswagen also has Genuine Advantage, another way for shops to get reimbursed.”

Above all, Flemington Audi/Volkswagen/Porsche thrives because of its access to the right parts at the right time. When you call to place an order, you don’t have to worry about a part being delayed due to unavailability. With nearly $1 million in items stored on-site, this dealer has you covered.

“If someone needs something immediately, we’ve got it,” Muir says.

NJA

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EARLY VENDOR

INTEREST

NORTHEAST® 2016 SPOTLIGHT by Jacquelyn Bauman

Points to Most Successful Show Yet Many of last year's vendors are already signed on to return to the 2016 show.

(Top to bottom: BASF, Innovative Solutions and Technology and American Honda Motor Company)

Although the weather is getting colder, the automotive field is starting to heat up.

With SEMA just inches ahead of us at press time, vendors throughout the industry are already starting to look forward to the next big event – the 39th Annual NORTHEAST 2016 Automotive Services Show.

After a record-breaking year in 2015, exhibitors are rushing to sign up for the show (held this year from March 18-20 at the Meadowlands Exposition Center in Secaucus, NJ), pointing to an even more successful three-day weekend than the last.

One major vendor that has already laid claim to its spot this year is Pro Spot distributor Innovative Solutions and Technology.

“Innovative will be expanding its floor space for the third straight year at the NORTHEAST 2016 Automotive Services Show,” says Innovative Solutions and Technology Sales Representative Nick Mattera.

“Pro Spot will be featuring new tools that will address the changing repair process in our industry, and hands-on demonstrations will be expanded in the booth this year for aluminum and steel repairs. This will be a great opportunity [for you] to put one of our Pulse MIG welders in your hands and see for yourself why Pro Spot is the industry leader in silicon bronze for steel repair, or [to] try out the number-one selling spot welder in the world. You certainly do not want to miss what is new from Pro Spot at NORTHEAST. Let us show you why Pro Spot is the answer for all of your shop’s welding and joining needs.”

BASF is another returning exhibitor that has been a major contributor to the show in a number of ways. As a NORTHEAST Platinum Sponsor for a number of years, this major paint supplier understands the advantages that come from participating in the largest regional trade show of its kind.

“There are a multitude of reasons that we contribute to NORTHEAST,” says BASF Marketing Services Manager Tina Nelles. “The value of participating in the show is demonstrating your importance to the industry and having the opportunity to interact with our customers and target accounts.”

Suppliers are not the only companies already gearing up for the show. After a wildly successful presence at NORTHEAST last year, American Honda Motor Company has secured its position in the 2016 installment of the show, planning to use the platform to demonstrate the newest opportunities from the manufacturer.

“Last year at NORTHEAST, we introduced our ProFirst Certified body shop program. It was a great show for us,” expresses American Honda Motor Company Assistant National Manager Gary Ledoux. “For 2016, we are going back to NORTHEAST to introduce our brand new booth and reach even more collision professionals with information on our ProFirst Certified program. Plus, we have two collision-damaged vehicles in the booth to dramatically demonstrate the importance of following OE repair procedures and using the proper tools and equipment for collision repair. It’s a must-see!”

Keeping an eye towards the future, there are big things to come from NORTHEAST 2016 that are not to be missed. For exhibitors that are interested in participating in what is sure to be a knockout event, please visit aaspnjnortheast.com for more information.

NJA

The 39th Annual NORTHEAST 2016 Automotive Services Show will be held March 18-20 at the Meadowlands Exposition Center in Secaucus, NJ.

Networking.

Education.

Innovation.

Technology.

IT’S ALL HERE. AASP/NJ’s

March 18, 19, 20, 2016 | Meadowlands Exposition Center | Secaucus, NJ

www.aaspnjnortheast.com New Jersey Automotive | November 2015 | 29

LOCAL NEWS By Jacquelyn Bauman

of Dave Gruskos Equipment, Inc.

otive Reliable Autom

Aluminum Meetings A sizable crowd gathered for straight talk on the present and future of aluminum repair.

Give AASP/NJ Members a Glimpse into the Future

It’s all we’ve heard about for the last few years. Aluminum. Now that it is officially out on the road in its biggest way yet in the 2015 Ford F-150, many shops are starting to feel the pressure to find out how to repair an aluminum-intensive vehicle – or at least where to begin. It is for this reason that AASP/NJ recently put on two comprehensive aluminum repair information presentations.

September 23 and 29 saw over 60 repairers gather at Reliable Automotive Equipment, Inc. (RAE) in Belford for eyeopening presentations by renowned expert and RAE president Dave Gruskos.

Gruskos stressed at the beginning of the September 29 presentation that it would not be a sales pitch – there would be no talk of money or hours, only the processes and equipment to use for a solid repair on aluminum. Gruskos covered panel and welding preparation, welding on aluminum bolts, panel warm up before dent removal, dent removal with screw pullers, filing off pulling bolts, dent removal on small dents with a hot flame and addressing surface irritations with a special filler.

However, one of the most important topics that Gruskos stressed throughout his exposition was cleanliness.

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Gruskos presented attendees with the recommended aluminum bay safety curtains with a welding shield, plus the proper lighting for aluminum repair. These items were installed in his showroom where the demonstration took place; as a result, the lighting replicated the factory in which an aluminum-intensive car is built.

“One thing to remember when you’re working with aluminum is that it is explosive,” he explained. “It is equal to dynamite in terms of the charge of the explosion. These curtains are designed to absorb the brunt of an explosion. Otherwise, if you’re in a hard-wall building, it will blow out.”

After he provided an example of the safety precautions a shop should take (and what a shop doing aluminum repairs should look like), he began to explain some of the equipment and procedures necessary to properly fix an aluminumintensive vehicle.

“Some of the things I show you will look new to you, but I guarantee they will be mainstream in the next few years,” Gruskos said. “Most of the things I show you are mainstream right now, but you probably just don’t know it.”

Although he explained some of the basics of aluminum repair, he stressed that most repairers should already be familiar with at least some aspects of the material, considering that vehicles on the road have had aluminum components for decades.

“You can’t heat-pull or stretch aluminum,” he said. “You can warm it with a heat gun, but if there’s a large dent or crease in it, it will need to be replaced.”

After a lengthy discussion about the panel repair process (from prepping to finishing and checking the welds with Magnaflux), Gruskos brought up what the future will likely hold for collision repair.

“The materials you’re going to be working with now are aluminum, magnesium and ultra-high-strength steel, and [you’re going to see an implementation of] all these products into each component,” he stated. “What that means is you’re going to have aluminum on cars to lighten them up. You’re going to have magnesium on cars to make them lighter and stiffer.

You’re going to have plastics as an insulator, especially on hybrids. Self-piercing rivets are yesterday’s technology by far.

We’re working with flow form rivets, pop rivets, punch rivets, blind rivets and more.” continued on page 65

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LOCAL NEWS By Jacquelyn Bauman

Final 2015 CARS

AND COFFEE Breaks Records

This year’s final installment of the increasingly popular Cars and Coffee event was held on October 18 at Moto Business Park in Millstone Township. Organized by AASP/ NJ Treasurer Tom Elder, the gathering has seen impressive growth over the years.

Starting off in 2012 with just 12 cars to display, the Sunday morning car show reached record heights in 2015, with the year-end event filling the Moto Business Park to capacity with 600 cars!

“People come from Canada, down south in Pennsylvania, New York City and all over to Cars and Coffee,” says Elder.

“This year, we had the car from The Munsters, one of the three Monkeemobiles, a Batmobile and a range of cars from a bunch of different decades and models. We served over 420 cups of coffee and over 45 dozen donuts at this last event, all for free. It’s a little overbearing for us because we’re a small group, which makes it difficult, but this is more of a love than a venture.”

With ever-growing success, 2016 is sure to be another record-breaking year for Cars and Coffee, and the New Jersey car fanatic community can’t wait until April to find out. For more information and to remain updated on Cars and Coffee, visit their webpage at carsandcoffenj.com and give them a “Like” on Facebook at facebook.com/cars andcoffenj.

NJA

Photos Courtesy of Cars & Coffee NJ

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NATIONAL NEWS By Joel Gausten

EMISSIONS SCANDAL OVERWHELMS VOLKSWAGEN

These have not been the best of times for industry giant Volkswagen.

In a story that grows more dramatic with each passing day, the company is currently embroiled in a scandal involving how it went about performing environmental testing on its vehicles. In September, the US Environmental Protection Agency revealed that the automaker falsified pollution tests on approximately 500,000 diesel-engine vehicles in the US by installing software (commonly referred to as “defeat devices”) to make these automobiles appear cleaner than they were. As a result, vehicles had the potential of releasing as much as 40 times the allowed level of nitrogen oxides when driven. At press time, it was estimated that at least 11 million VW cars have been affected worldwide. Volkswagen was expected to be hit with fines totaling in excess of $18 billion, while the company has suspended sales amidst an order to recall 500,000 cars in America. The identified US models include the VW Jetta, Beetle and Golf (2009-2015); the Audi A3 (2009-2015); and the Passat (2014-2015).

Not surprisingly, the debacle has led to major changes at Volkswagen. On September 23, Volkswagen AG CEO Martin Winterkorn resigned from the company amidst a fraud investigation by German prosecutors. He was replaced by Matthias Müller, who has served as CEO of Volkswagen subsidiary Porsche since 2010.

On the same day as Winterkorn’s resignation, the New York Post reported that New York Attorney General Eric Schneiderman had launched an investigation into VW’s practices.

“No company should be allowed to evade our environmental laws or promise consumers a fake bill of goods,” Schneiderman said in a statement. “We will seek to uphold New York’s strong tradition of consumer and environmental protections as this investigation proceeds. We look forward to collaborating with Attorneys General across the nation on this matter.”

In an October 6 letter to Volkswagen AG and Volkswagen Group of America, Senate Finance Committee Chairman Orrin Hatch (R-UT) and Ranking Member Ron Wyden (D-OR) probed the manufacturer on the use of its “defeat devices” and the subsequent certification of information to the Internal Revenue Service

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(IRS) in order to meet requirements for federal tax credits and increase sales of its vehicles.

“In 2008, Volkswagen certified to the Internal Revenue Service that the 2009 Volkswagen Jetta TDI Sedan and SportWagen qualified for $1,300 in tax credits per vehicle sale,” they wrote.

“On October 6 of that year, the IRS acknowledged Volkswagen’s certification...Other 2010 Turbocharged Direct Injection (TDI) Volkswagen and Audi vehicles were later certified for eligibility.

Volkswagen sold at least 60,000 of these vehicles by July 1, 2010, after which the credit amount was reduced in half until December 31 of that year...These figures suggest that well over $50 million in tax subsidies went to purchasers of these vehicles, depending on the number of purchasers who claimed the credit.

“Recent findings by the US government show that Volkswagen manipulated emission control systems for as many as 482,000 diesel vehicles sold in the US through the use of auxiliary emission control devices, classified by the US government as ‘defeat devices,’” they added. “The US government has alleged that Volkswagen knew or should have known that this manipulation allowed the vehicles to bypass, defeat or render inoperative elements of the vehicle design and cause the vehicles to underperform when the systems determined the vehicle was not undergoing federal testing, resulting in different emissions levels during testing than the vehicles produce in normal conditions. The vehicles in which Volkswagen installed ‘defeat devices’ included those that the company certified as qualifying for the advanced lean-burn technology motor vehicle credit. While investigations are ongoing, the Volkswagen Supervisory Board has confirmed that the company installed ‘defeat devices’ on as many as 11 million vehicles marketed as model years 2009 through 2015. This activity raises questions of whether Volkswagen made false representations to the US government in its certification for federal tax subsidies.” The full letter is available at tinyurl.com/pbq8wob.

New Jersey Automotive will provide updates on this story as it develops.

NJA

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GETTING A DIVORCE?

LEGAL PERSPECTIVE by Mitchell Portnoi, Esq.

A recent client of mine decided to handle his own divorce.

He figured he knew what he wanted and had enough knowledge of the system to ask for it and negotiate the terms on his own. He ultimately did a great job and perhaps negotiated a better deal than he could have if he had been represented. Is there a problem with that? Perhaps. It turns out that his ex-spouse is now making a motion to set aside the settlement agreement after it had been in force for a very short time. He is now expending considerable sums of money attempting to enforce it. Would he have been better served if he had representation from the beginning? I believe so, and I believe a number of adages apply – ‘a penny wise and a dollar foolish,’ and ‘a person who represents himself has a fool for a client.’ I could probably go on, but I’m sure you get the point.

While an agreement negotiated in good faith by both parties is generally enforceable, one that smacks of “undue influence” or “duress” (or that may be blatantly unfair on its face) is capable of

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being set aside by a court. So this begs the question – why place yourself in this circumstance? Have a settlement agreement reviewed by a competent matrimonial attorney, and have a spouse do the same. Spend a few dollars at the outset and avoid the possibility of larger bills in the future. Certainly, an impending divorce is ripe for claims of “undue influence” or “duress.” Why put yourself through that if it can be avoided?

For a referral to a matrimonial attorney, please call me at (973) 228-9900.

NJA

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INDUSTRY UPDATE by Jacquelyn Bauman

“SMART CARDS:” How Will They Affect Our Industry?

On October 1, there was a liability shift from credit card companies to merchants as a result of EMV (Europay, MasterCard and Visa) card transactions – also known as “chip cards” or “smart cards.” Although this has caused a bit of an uproar in the collision repair industry, it is important to note that your existing equipment will still be able to accept all card transactions after October 1. Six out of 10 people still do not have a chip-enabled credit card.

This shift from magnetic strip cards to smart cards is caused in part by the steady rise of corporate data breaches at big box retailers.

“What we’ve seen over the last few years by way of fraud has been staggering,” says Harbortouch Sales Representative Ken Racioppi. “We’ve had over 700 million cards compromised last year alone. Every big box retailer has had some type of breach. Some of them you’ve read about – Target, Home Depot, Walmart, etc. – and some haven’t been front-page news.”

These breaches have forced Visa and MasterCard to implement a system they’ve had in place overseas – chip cards. According to Racioppi, 90 percent of fraud happens on the magnetic strip, where it can be encoded and used to purchase big ticket items. With the new chip technology, a card is inserted into a slot in the terminal (an EMV reader) and retained for a few seconds. During these few seconds, the chip is read, the information is passed along to the issuing bank, an algorithm is generated and a unique ID is created for each transaction. There is no ability to clone the card because there is a unique PIN for every transaction.

This change has had a few different effects on shops in this market. While the switch may present an issue for busy repair facilities because the transactions take longer to process, smaller shops should see no conflict. The major complication is a shift in liability for the charging party. The merchant will take on the liability for chargebacks or

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use of counterfeit cards if they do not have an EMV-compatible credit card terminal.

“My goal is to get out what is fact and what is fiction about these chip card terminals,” says Racioppi.

An EMV-ready terminal can cost hundreds of dollars or can be leased at a high monthly payment.

Racioppi warns that salespeople for these terminals are using the shift to rush merchants into making a mistake for their business.

“There’s no big scare or rush to have a machine rolled out immediately,” he says. “Some people have made some hasty decisions thinking that is the case. Yes, you should have it, but don’t rush to the first one in your face because it’s more than likely being used as a sales tactic to prey on misinformed merchants.”

Through Harbortouch’s benefit partnership with AASP/NJ, Racioppi has created a program where members will receive a full EMV-ready solution at no cost or contract. In addition to the EMV capability, the solution will also support mobile payment processing for those customers who wish to use Apple Pay or Google Wallet, as they are quickly gaining popularity and are forecasted to be the preferred method of payment in the future.

Racioppi’s system works over IP with dial backup to give the customer faster, more reliable transaction speed.

As Harbortouch has been a trusted representative of the association for over six years, AASP/NJ urges you to bring your questions and concerns regarding this matter to them. For more information, contact Ken Racioppi at (866) 353-0168 or email him at ken@premiersolutionsnj.com.

NJA

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FEATURE by Joel Gausten

RATES

and

REALITY:

What a Changing Insurance World Means FOR YOU

If you need proof that the American economy is recovering, just check out traffic reports in your area.

According to the Federal Highway Administration, travel on our nation’s roads hit an astounding 1.54 trillion miles during the first half of 2015, a result of decreased gas prices and improved financial conditions. However, there is a dark side to this influx of automobiles. Data from the National Safety Council indicates that fatal accidents across the US increased by 14 percent from January to June, with bad weather in many parts of the country acting as a major contributor. The insurance industry is well aware of this trend, and two of the field’s biggest players are already reshaping how they do business as a result.

BILLIONAIRES GOING BROKE? Anyone who owns a TV knows the GEICO gecko, that amusing creature who finds himself in humorous situations while the company reminds viewers that they can “save 15 percent or more on car insurance” by switching to them. But if financial updates from the industry giant offered throughout the year have been any indication, our little green friend might need to find a rock to hide under. According to a May 4 Insurance Journal report, the insurer’s underwriting profits for the first quarter of 2015 dropped $193 million from the first three months of the previous year due to an increase in claim frequency. In an email to the Wall Street Journal published in part on September 9, business legend Warren Buffett (CEO of GEICO parent company Berkshire Hathaway) blamed the prevalence of texting behind the wheel for being a major factor in the jump in automobile accidents.

“If cars are better—and they clearly are—drivers must be worse [adjusted for mileage],” he wrote. (Buffett isn’t being dramatic: Based on National Safety Council estimates in 2014, 26 percent of all car accidents in the United States involve some kind of cell phone use at the time of the collision.)

GEICO wasn’t alone in announcing price increases. Firstquarter underwriting income for Allstate automotive insurance fell 48 percent to $144 million from January to March 2015, leading the insurer to announce its own plans to pass along the loss to customers by raising premiums.

“We didn’t make as much money in auto insurance this quarter, in part because of weather, in part because we have to adjust prices, reflecting economic activity,” Allstate Chief Executive Officer Tom Wilson told the Boston Globe on May 6, adding that an improved economy had resulted in customers driving more and

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increasing claims volume along the way. Additionally, Allstate President Matt Winter told the paper that the average premiums paid by customers have been “steadily increasing.”

The news surrounding Allstate and GEICO should be of particular interest (and concern) to drivers who utilize their services in New Jersey – already the state with the highest insurance premiums in the nation. According to the most current information available from the National Association of Insurance Companies, drivers in the Garden State paid an average of nearly $1,220 on car insurance policies in 2012. To put that into perspective, that’s more money than policyholders had to shell out in our nation’s capital ($1,155) and New York ($1,152). Marshall McKnight, a spokesman for the New Jersey Department of Banking & Insurance, told the Star-Ledger on March 23 that New Jersey was “one of the most densely populated states in the nation,” adding that “there are more cars and more accidents” as a result. If more accidents equal more claims for insurers, then drivers here can expect to pay more for auto coverage than any other place in America for the foreseeable future.

(Something to keep in mind: While GEICO’s $193 million drop is a major loss by any measure, that amount pales in comparison to the company’s monolithic advertising budget. As detailed by Insurance Journal in July 2014, the company spent $1.12 billion on advertising in 2012 and $1.18 billion the following year. To illustrate just how much emphasis GEICO places on advertising, consider that Progressive spent a comparatively paltry $595.4 million in 2013 to keep Flo the Waitress a cultural icon.)

WHAT SHOPS CAN LEARN Of course, what happens in the auto insurance industry impacts the day-to-day business lives of collision repairers. With cost serving as the deciding factor for many vehicle owners when they select auto insurance (especially as the holiday season approaches), shops can expect underinsured customers hitting their bays in greater numbers – and all the collection headaches such a trend would very likely entail. However, there is something very interesting – and potentially quite positive – to consider in all of this: If the auto insurance industry can raise its pricing when it encounters new demands and obstacles, then why can’t the collision repair field do the same thing? These days,

the ability to properly bring a vehicle back to pre-accident condition often requires everything from OEM certification to specialized equipment and dedicated areas within a shop. There were nearly 360,000 2015 Ford F-150s sold from January to June – and each one would need proper care if it is involved in a crash.

But having the talent, expertise and equipment needed to restore these vehicles often comes with a six-figure price tag for any shop willing to take on aluminum repair of this nature.

Let’s say you’re considering purchasing a piece of equipment for a few thousand dollars. How many jobs do you have to perform with that product before you see an ROI? Will that ROI occur before that equipment becomes obsolete? What about the cost of training your techs to use that equipment? Did you have to send them out of state for the weekend to get trained for that thing? How many hotel rooms and meals did you have to pay for to make that possible? These are all things that influence your charges in the real world.

Of course, a major reason to go through all that time and expense is to be certified/recognized by a major automaker and use that as a marketing advantage. If the aluminum revolution of the past year has taught us anything, it’s that reaching this designation often comes at a high cost. In addition to you shelling out $100,000 or more to make your existing facility aluminumcapable, many manufacturers charge fees to participate in their OEM programs. For example, Honda’s new ProFirst Certified

body shop program requires a $2,700 annual fee on top of that shop being either I-CAR Gold Class or a VeriFacts VQ or Medallion shop. A student taking Audi’s current 10-day Aluminum Welding & Structural Repair Certification Course will need $3,000, not counting expenses for food, lodging and travel.

With constant practice a necessity for a skilled aluminum technician, Audi requires a four-day re-certification course every two years at $1,500 per participant.

If you’ve made aluminum a part of your professional offerings, have you worked out how you’re going to pay for that financial commitment? Perhaps the first thing you should do is take a look at how many Ford aluminum trucks you saw in your facility in the last few months. Was it a regular flow of work, or did you only see five or six? If that’s a realistic number for you, think about how many years it would take you to equal and exceed the amount of money you’ve put out to be able to repair these vehicles. Will you be able to realistically break that down into an hourly rate that you can charge for that expertise?

With the impending winter sure to increase car accidents even more, demands on both insurers and body shops will likely escalate. But will shops follow the insurance industry’s lead and raise their charges to weather the coming storm? It might be time for many owners to consider that question very carefully.

NJA

If the auto insurance industry can raise its pricing when it encounters new demands and obstacles, then why can’t the

collision repair field do the same thing?

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COVER STORY by Jacquelyn Bauman

REMOTE

ESTIMATES: An Unfortunate Situation

T

he thought that an insurance company would allow a consumer – someone who is completely ignorant about the repair process – to take photos of damage to his or her car and send it in to them to write an appraisal is absurd to many in the industry. And yet, photo estimating systems like Allstate’s QuickFoto Claim, State Farm’s Pocket Agent or Farmers Insurance’s EZ Estimate allow an insured to do just that. In many situations, more damage is discovered when the vehicle is taken apart, requiring a supplement to be written. In cases of photo estimating, some shops are seeing estimates that are inadequate by 30 to 50 percent.

While shops in New Jersey are only just starting to feel the brunt of photo estimating in their bays, the practice has been around for a while in Massachusetts.

“In our state, the Code of Massachusetts Regulations [CMR] only allows photo estimates up to $1,500,” says Bill Johnson, owner of Pleasant Street Auto Body in South Hadley, MA and a member of his state’s Auto Damage Appraiser Licensing Board (ADALB). “The CMR had ruled that photo estimating equated to a personal inspection, but in my shop, what I saw were supplements that were 30 percent higher than an average job. The amount of money in that difference was huge. The way vehicles are made these days, there are a lot of crumple zones and hidden damage. It’s not possible to see everything from a cell phone picture.”

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AASP/NJ Board member Jerry McNee (Ultimate Collision Repair, Edison) is one New Jersey shop owner who has seen the impact of photo estimating.

“As far as I see it, it’s a new way of doing business that insurance companies are entertaining to cut down on the cost of their internal expenses and running these claims,” he offers. “I think it’s going to happen and continue to happen, and I think more insurance companies are going to do it.”

The reason for McNee’s perspective on this issue is simple – insurance companies think of the bottom line above everything else.

“Customers are going to get estimates that aren’t going to be written properly because of the photos,” he says.

The Allstate QuickFoto Claim procedure allows customers to take photos of the damage and the whole car and submit it to the insurer. That’s it. Although the website advertising this feature (tinyurl.com/p3ed594) stresses that it is only applicable

to minor damage, many consumers either don’t know the difference between minor and major damage or are unaware of major damage they cannot see.

McNee believes this is a perceived win-win situation for the insurers and the consumers. Insurers are lowballing the damage on some vehicles, while many owners take the check to use on other things instead of repairing the vehicle they assume is only afflicted with minor damage. This is what McNee believes is the insurers’ motive for using the system. They get away with a low claim figure, and the customer gets a little spending money. However, months down the line when these customers need repairs on their vehicles or those automobiles are traded in, they are surprised by the financial hit they take.

“If my customer has a vehicle that’s worth $10,000 and they get $1,500 from the insurer through the photo estimating claim even though there’s $3,000 worth of damage down the road, they are losing out,” Johnson states.

Not surprisingly, supplements are skyrocketing.

“The supplements on these jobs are absolutely higher,” McNee says. “They double or even triple in my experience. The reason is that the photos are not correct; you can’t see the internal damage. I just had a three-hour repair on a bumper that clearly needed to be replaced.”

“The biggest problem with photo estimating is the safety issues surrounding it,” says AASP/NJ Executive Director Charles Bryant. “In many surrounding states that have appraiser licensing laws, photo estimating is forbidden. The laws state some variation of the fact that an appraiser shall not write an estimate over the phone, based on video or on photos. The estimate must be written through personal inspection. My question is, if an appraiser writing an estimate is held to that high of a standard, how is a consumer allowed to send in two pictures to the insurance company and they can write him or her a check?”

As there are no appraiser licensing laws in New Jersey, collision repairers in the state just have to “roll with the punches,” as McNee puts it. McNee and Johnson have some advice for shops that either have not yet experienced a photo estimate or that have and are suspicious of them.

“I treat these vehicles like they’re any other estimate written off the streets,” McNee says. “It’s not going to change. Don’t be alarmed at the difference between what’s written and what’s actually needed.”

“You have to spend your time educating your customer on their rights,” says Johnson, who is not a part of a referral program (the equivalent of a DRP in Massachusetts). “Shops need to educate the consumers on why the insurers are not working for them.

They also need to be proactive politically.”

New Jersey Automotive | November 2015 | 55

COVER STORY So what are repair shops in New Jersey going to do to fight photo estimating and its impact on their daily business? The first step is to document every situation you have with this issue and send that information to Bryant, who is working to compile all evidence against quick photo estimating in order to fight its effect in the Garden State. Having spoken to aides from Senator Diane Allen’s office back in May, Bryant’s goal is to collect evidence to bring back to her and the Department of Banking and Insurance to prove a general business practice.

“The way it was left with the Senator was my instruction to keep an eye on this issue,” Bryant explains. “For example, I want to be able to come back and show them an insurance company that uses photo estimating and writes an estimate for $900. Instead of getting the car fixed, the customer uses that money to pay his or her mortgage. Down the road, the vehicle causes an accident. If an appraiser had actually looked at it, he or she would have seen that it should have been taken off the road.

“By getting documentation of this into my office, I can bring the evidence to the Senator and the Department of Banking and Insurance to prove that something needs to be done,” he adds. “If we can build up enough information, we can get someone to listen to us.”

To contact Charles Bryant about a poor photo estimating claim that has been in your shop, please call (732) 922-8909 or email him at setlit4u@msn.com.

NJA

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ARANJ 2015 Officers

President Bob Dirkes Dirkes Used Auto Parts (609) 625-1718 dirkesauto@gmail.com

1st Vice President Ian Szoboszlay Ocean County Auto (732) 349-0332 ian@cosmosautoparts.com

2nd Vice President Darryl Carmen Lentini Auto Salvage (908) 782-6838 darryl@las-parts.com

3rd Vice President Joe Goodman Leesville Auto (732) 388-0783 joeg@leesvilleauto.com

Executive Director Brian Snyder Auto Recyclers of NJ (609) 714-2339 brian@aranj.org

ARANJ 2015 Board of Directors Mike Ronayne Tilghmans Auto Parts (609) 723-7469 tilghmans@snip.net

Mike Yeager EL & M Auto (609) 561-2266 elandmauto@aol.com

Rodney Krawczyk Ace Auto Wreckers (732) 254-9816 aceautonj@comcast.net

Mike Caputo Lacey Used Auto Parts, Inc. (609) 693-0898 laceyautomike@aol.com

Bert Witcraft Auto Express (856) 728-8367

Ed Silipena American II Autos (609) 965-6700 esilipena@yahoo.com Harry Shover Porchtown Auto (856) 694-1555

Norm Vachon Port Murray Auto (908) 689-3152 portmurrayauto@yahoo.com

Wharton Insurance Briefs An ARA Member

There have been several complaints regarding the loss control inspections that have taken place in the past. We have relayed your concerns to the insurance company. The insurer has partnered with a new loss control service company that is specialized for your industry. They have a staff of industry consultants who are specialists within this class of business and can provide you with valuable loss control resources. They will be able to provide valuable risk management practices, recommend solutions, promote loss prevention and offer many other valuable resources.

Some will be included in the loss control inspection, and others can be obtained for a fee. They will be working directly with you - our client - on all communication relating to loss control. Our office will be copied on all communication, but please contact me if you have any questions regarding their loss control inspection, recommendations or questionnaires that need to be completed. More information on this new company will be available soon.

Mario DeFilippis, AAI, Vice President (800) 221-0003 (ext. 1320) (908) 513-8588 (cell) mdefilippis@whartoninsurance.com

New Jersey Automotive | November 2015 | 57

NO BRAKES by Ron Ananian

THE PRICE OF ADMISSION

Funny how the older you get, the more you wonder. Why do things work like they do (not the cars, but life, business and the world)?

What does it cost to be involved in auto repair?

It’s not just the overhead, tools, equipment, personnel and so on – it’s more.

Did you ever stop to look at ALL of the people over the years who have tried – and, let’s face it, in some cases succeeded – to beat you up on a price? “Can you do it for this?” must have been the first words some people learned when they started to speak.

Once they know they can get you on price, they’ll try lowering it each time until the bottom is reached or they are tired of asking and move on. (By the way, my customers have come to you and yours might have come to me.) There are no new customers, only ones who move around for various reasons.

Then there are the people who really are, for lack of a better way to say it, stupid. Harsh statement, but true. They are illogical, running around in circles trying to get a car repaired. And they want you to repair it their way. Of course, since they know best...

I have learned to throw cars and customers away in the last couple of years. I’m not lazy and I could use the work like any of us, but the cost to deal with the crazies is just not worth the price of admission. I’ve been to the circus at this point in the game and seen the monkeys – if you know what I mean. Case in point...

Where is Joe Isuzu when you need him? Remember Joe? For the longest time, he was a character on TV in all those Isuzu commercials making promises about the car and the company.

Well, one of his believers came into my shop this week. This customer had been driving a 2005 Isuzu that had a “check engine” light on for three years, and now its state inspection was coming back around again. So much for the load of bull the state handed

us that “vehicle owners will always maintain their vehicles correctly, which is one of the reasons we are suspending safety inspections.” But anyway, “Joe” wanted to know if we could work on his Isuzu. I told him, “Sure, but we can’t get parts for most of the vehicle anymore.” He started to get a little belligerent and asked me what he was supposed to do. I suggested junking the vehicle since the company was no longer on the market and it would be difficult to get good, quality repair parts. He pushed back, and pushed and pushed. I had to push back myself, explaining that the car was 11 years old, the company is gone and the car is basically obsolete. Get over it.

THE BOTTOM LINE IS...

The price of admission goes up every day. The cost to be in this industry is high – financially and emotionally. One of those can be eliminated with a good business plan. The other? Stand your ground and take no crap. Harsh statement, I know. But the older I get, the fewer filters I have. Life is too short; if we have to keep paying a high price, it will get shorter all the time...

Remember, everyone has a “Joe Isuzu.” Weighing how you deal with them could lower your overall exposure and cost and help to keep your “price of admission” within your budget.

The longer I do this, the more I wonder.

NJA

’Til next time, I’m Ron Ananian, The Car Doctor, reminding you that “Good mechanics aren’t expensive; they’re priceless.”

Ron Ananian, owner of R\A Automotive in Waldwick, NJ (est. 1978), is heard weekly in 140 markets on his nationally syndicated radio talk show. He is a working technician and former AASP/NJ Board member. Beyond his radio show, Ron writes and speaks for the automotive industry at trade shows and events. Visit The Car Doctor online at www.cardoctorshow.com.

“The Car Doctor” can be heard LIVE in the New York market. Tune in Saturdays, 2-4pm on WRCR AM 1700 for new shows!

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AASP/NJ NEW MEMBER SHOP PROFILE By Joel Gausten

THE WRECK ROOM

COLLISION

Twelve years ago, auto body technician Jeffrey Vrablik made the life-changing decision to be his own boss and open his own shop. Before long, The Wreck Room Collision in Atlantic Highlands became one of the most popular repair operations in the area. For Vrablik, this continued success has been a highlight in a life filled with automobiles.

“I’ve loved painting since I was five years old,” he shares. “I used to take the Hot Rod magazines off the top of my dad’s dresser, thumb through them and look at all the different paint schemes. If they had a ‘paint and body special,’ I had to read about what they were using.”

Not surprisingly, making the leap from technician to owner was an eye-opening experience for this automotive professional.

“I learned a lot about employing people,” he reveals. “Employees are the most difficult aspect of this business. For the first five or six years, I would say that was the toughest thing I went through.”

Currently, Vrablik’s 4,000-square-foot shop repairs roughly 30 vehicles a month thanks to a three-person crew that includes his girlfriend, Brittney Romero.

“I said to her, ‘You know, if we’re going to be serious, you might want to learn about the body shop because I could use some help,’” he recalls. “She did; she does repair work and paint prep, and she runs my office, writes all the estimates and deals with the customers.”

To ensure that his facility runs smoothly, Vrablik takes a hands-on approach to encouraging and developing the talent on the shop floor.

“I’ve found young employees and trained them myself,” he says. “One was working as a mechanic at a gas station; another is a young lady who went to Lincoln Tech for mechanical repair.

Nobody would give her a job, so she thought, ‘Why not try a body shop?’”

While The Wreck Room Collision operates with a positive spirit, that’s not to say that the shop hasn’t encountered its fair share of frustration. Like many owners, Vrablik faces issues with vehicles being totaled under their threshold, or customers retaining ownership of their vehicle after it was deemed a total loss.

These and other concerns led the shop to join AASP/NJ earlier this year for the first time.

“I’ve asked for [Executive Director] Charles Bryant’s advice on a few occasions,” says Vrablik on his decision to become a member. “He’s really helped me out with settling claims. I promised him that since he answered my questions, I would join the association.”

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The Wreck Room Collision is one of AASP/NJ's newest participants.

As for the future, The Wreck Room Collision is currently in the process of converting unused office space at the shop into a motorcycle/ATV collision repair area that is expected to be in full operation by the end of the year.

“It seems like more insurance companies are getting into the powersports market,” Vrablik explains. “I feel like they’re going to be looking for facilities that have dedicated space for that type of work so that somebody’s high-dollar motorcycle isn’t sitting inside a body shop with grinding and welding and dust getting all over it.”

With a thriving facility and more than a decade in business under his belt, Vrablik remains proud to have a home in the New Jersey auto body industry.

“It’s all that I know and all that I’ve ever wanted to do for a living,” he says.

“Now that I’ve been at it for a while, I can’t think of doing anything else.” NJA

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OUT OF BODY (AND MECHANICAL) EXPERIENCES

continued from page 11 Giants gets. We’re talking needle in a haystack. But wouldn’t you know...Mr. Mara took the time to write me back, and not in some form letter with a stamped signature. This was a beautifully handwritten explanation of why the Giants cut Simms. He actually agreed with me! But he said he paid his football people to make the football decisions. As a business owner, I understood perfectly. I’m still pissed they did it though! But God bless the man. He was one of the most influential figures in NFL history and he took the time to answer some pain-in-theass fanatic from Nutley.

I have written many letters to magazines over the years, and it was always a thrill to wait and see if they would print it. I used to check the mail every day after I’d written one, anticipating seeing my name in the magazine. (Trust me, I get the subconsciousness working here.) I think I miss that feeling more than anything else I’ve mentioned in this story. I feel terrible that my kids will never experience that thrill thanks to message boards, Twitter, Facebook, etc. I have had a lot of luck over the years.

I’ve been in Sports Illustrated, the

Star-Ledger, Rolling Stone, The National and several others. But never Playboy.

No, I didn’t get into Playboy until I EMAILED a letter to them. Talk about irony. I should have seen the announcement they made today coming back then.

NJA

PRESIDENT’S MESSAGE

continued from page 12 car delivery until the check clears?

What would you do?

I’m interested to see if any of our readers have faced this situation and, if so, how you handled it. If you have a story of your own to share – or some insight into how you would go about safeguarding the legitimacy of check payments – please reach out to myself or the New Jersey Automotive editorial staff (see page 5). You might find your advice in a future issue!

NJA

LOCAL NEWS

continued from page 30

With all of the different repair procedures coming to the market, Gruskos recommends finding a rivet gun with adapters so that you can handle self-piercing rivets, blind rivets and flow form rivets. Before breaking to allow attendees to view some of the equipment in action and ask questions, he once again stressed the necessity for safety procedures and equipment in the shop.

“Aluminum dust and magnesium dust are very flammable,” he warned. “If you mix aluminum dust and steel dust, that’s a thermite bomb. You need a vacuum that has water running through it. It’s your job to have what’s required in your shop from a safety standpoint.”

For more information on any of the topics covered at the aluminum meeting, please contact Dave Gruskos at (732) 4957900, email him at dave@rae1.com or visit the RAE website at raeservice.com.

NJA New Jersey Automotive | November 2015 | 65

ADVERTISERS’ INDEX Acme Nissan ........................................4 Amato Agency ......................................27 AP Media ..............................................23 Audi Group............................................34-35 Axalta Coating Systems ........................6 BMW Group ..........................................38-39 Bridgewater Acura ................................33 Cadillac of Mahwah ..............................17 CCC Comp-Est ......................................18 Classic Audi ..........................................18 Clinton Acura ........................................11 Cosmos Ocean County Autowreckers ....12 Dover Dodge Chrysler Jeep....................IBC Empire Auto Parts..................................66 FASTLIGN® ..........................................23 Flemington Audi ....................................25 Flemington Group..................................5 Fred Beans Parts ..................................26 Future Cure ..........................................20 Grand Prix Subaru ................................53 Glen Toyota ..........................................OBC Hyundai Group ......................................61 JMK BMW ............................................13 JMK Saab/JMK Fiat ..............................57 Klean Frame..........................................56 Levittown Ford ......................................53 Maxon Mazda........................................42 Maxon Hyundai......................................37 Mazda Group ........................................62 Mercedes-Benz of Freehold ..................10 The Mike Kaufmann Dealer Group..........65 MINI Group............................................59 MINI of Manhattan ................................60 Mitsubishi Group ..................................63 Mopar Group ........................................47 NORTHEAST® 2016 ............................62 NUCAR..................................................14-15 Paul Miller Audi ....................................46 Porsche Group ......................................43 PPG ......................................................3 PPGMS ................................................40 Prestige Motors ....................................64 Princeton BMW ....................................21 Princeton MINI ......................................19 Reliable Automotive Equipment ..............31 Smart Witness ......................................19 Steck Manufacturing..............................64 Subaru Group........................................45 Town Motors ........................................41 Toyota Group ........................................51 Toyota of Hackensack ............................IFC Tri-State Luxury Collection ....................8-9 Valtek....................................................56 VIP Honda ............................................33 VW Group ............................................50 Westbury Jeep Chrysler Dodge Ram SRT...52 Wheel Collision Center ..........................66

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