Governor signs into law
Warranty Reimbursement at Retail
Attending the Warranty Reimbursement at Retail signing are from left: Rep. Tracy Kraft-Tharp, Sen. Jack Tate, Tim Jackson, Governor John Hickenlooper, Todd Maul, Michelle O’Connor, Mark Brady, Randy Biles, Scott Deines, David Slone.
By Tim Jackson, CADA CEO & President
At 2:47 p.m. yesterday, Colorado Governor John Hickenlooper signed Senate Bill 219 into law. Several dealers personally attended the momentous event. We’re certain that in spirit, 260 dealership owners and/or general managers, along with service and parts directors, warranty administrators, controllers, CPAs and attorneys were there in spirit.
You can mark June 4, 2018, on your calendar as a critically important date historically. I’m convinced, based on data I’ve witnessed, that of all of the meaningful, important and significant pieces of franchise law enacted over the years by CADA, this one (SB-219) will carry by far the greatest-across-the-board impact.
As you may know, CADA has organized educational seminars across Colorado in June, to ensure all questions are answered and dealership managers are given the information necessary to reap the benefits of the legislation. For more information on these seminars, click here.
Thanks to these dealership representatives and legislators for joining the bill -signing ceremony in the Governor’s office:
- Senator Jack Tate, R-Centennial
- Representative Tracy Kraft-Tharpe, D-Westminster
- Colorado Governor John Hickenlooper, D-Denver
- David Slone, Greeley Subaru
- Randy Biles, Pikes Peak Traveland
- Paul Suss, Suss Buick GMC
- Todd Maul, Elway Dealerships
- Mark Brady, Fisher Honda & Acura
- Scott Deines, Fisher Honda and Acura
- Matthew Groves, CADA
- Michelle O’Connor, CADA
- Mike Feeley, CADA Chief Lobbyist
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Mastery of Finance for Auto Dealers
& Key Leaders
A workshop that links finance to automobile dealership operations
You already know this: Performance is measured on bottom-line results. After all, that’s nothing new. Yet everyone with financial line item responsibilities in a dealership should really understand how much gross profit is being made in his or her department — to ensure the entire organization performs in a way that’s profitable.
For many, they don’t understand the impact the different margins have on the dealership’s bottom line. For example, new and used car sales have extremely low margins. So the bigger margins of sales are in Service, Parts and Body departments. Each department leader needs to understand why their margins are so important when they drive revenue at your dealership.
Most leaders with financial responsibilities don’t quite get that.
They will, though, after attending the day-long workshop, Mastery of Finance for Auto Dealers & Key Leaders. During this workshop each key member of your leadership team will discover how they can make better overall decisions to ensure the dealership is profitable on a sustained basis, and how to improve profitability margins.
In a nutshell:
Effectiveness is the senior manager’s job. Efficiency is the operating managers’ and employees’ jobs. To be successful, a dealership needs to be effective AND efficient. To do that means understanding the metrics of effectiveness, the metrics of efficiency and how to make decisions that will ensure both of those at your dealership.
CADA has partnered with MetaMark Learning to provide Mastery of Finance for Auto Dealers & Key Leaders. This program is designed for non-financial professionals in every functional area of an auto dealer’s operations who are responsible for:
- Driving financial performance
- Analyzing strategic opportunities
- Assessing risk
- Communicating financial priorities and results
About the presenter: Owner of MetaMark Learning, Darrell Mullis is the author of The Accounting GameTM, one of Amazon.com’s top two recommended finance books over the past 10 years. With more than 30 years’ experience, Darrell is a leading expert in teaching finance to non-financial professionals, including CEOs and key team leaders of multinational corporations and family owned businesses throughout the world. MetaMark Learning has customized the program for the auto industry. Darrell’s objective is to help people understand how money is made in the industry and how each person can improve profit and cash flow in day-to-day decisions and actions.
When:
Tuesday, June 19
7:30 a.m. Breakfast and networking
8:00 a.m. – 5:00 p.m. Workshop
Lunch is provided
Where:
CADA Headquarters
290 E. Speer Blvd. Denver
Price:
$400 All registrations
Group discounts available
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New Colorado franchise law: SB-219
Warranty reimbursement at retail seminar
How to add revenue to your Service & Parts departments
The most significant piece of legislation ever passed for Colorado’s auto dealers got the green light in early May. The Warranty Reimbursement at Retail bill levels the playing field between the manufacturer and the dealer for warranty and recall vehicle repairs.
In short, the bill lets you receive warranty parts and labor reimbursement rates that more closely match those charged for non-warranty work. This new law means a significant boost to your bottom line.
The law goes into effect October 1. Please note that last week we incorrectly stated the effective date as August 9. And you’ll need to understand how to navigate a complex formula to obtain these higher warranty and recall reimbursement rates.
Please join CADA as Michael Dommermuth, dealer attorney from Fairfield & Woods, P.C., leads this important seminar about the new law, what it can do for your dealership and how to navigate the calculations so you’re reimbursed for warranty work at current market rates.
Schedule
Monday, June 18
DoubleTree by Hilton Hotel Durango
501 Camino Del Rio
Durango, CO 81301
11:30 a.m. – 1:15 p.m.
Lunch included
REGISTER NOW!
Tuesday, June 19
Holiday Inn Express & Suites Montrose
1391 S. Townsend Avenue
Montrose, CO 81401
7:30 – 9:15 a.m.
Breakfast included
REGISTER NOW!
The Hotel Colorado
526 Pine St.
Glenwood Springs, CO 81601
Noon – 2:30 p.m.
Lunch included
REGISTER NOW!
Monday, June 25
Courtyard by Marriott Pueblo Downtown
110 W City Center Drive
Pueblo, CO 81003
7:30 – 9:15 a.m.
Breakfast included
REGISTER NOW!
Antlers Hotel*
4 S. Cascade Ave.
Colorado Springs, CO 80903 1
1:30 a.m. – 1:15 p.m.
Lunch included
*CSADA members: Registration is included with your dues.
REGISTER NOW!
Tuesday, June 26
SOLD OUT!
CADA Headquarters
290 East Speer Blvd.
Denver, CO 80203
7:30 – 9:15 a.m.
Breakfast included
The Ranch Events Complex
5280 Arena Cir.
Loveland, CO 80538
11:30 a.m. – 1:15 p.m.
Lunch included
REGISTER NOW!
NEW! Second Denver date!
Wednesday, June 27
CADA Headquarters
290 East Speer Blvd.
7:30 – 9:15 a.m.
Breakfast included
REGISTER NOW!
Price
$239 first person
$199 each additional person
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Regulatory and Legal Updates
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Dealer license acquisition
While Washington seems to be on a ‘policy time out’ for primary elections and a few good news cycles, business shows no signs of slowing in Colorado. As we move toward the halfway point of the year, NADA indicates that current sales trends suggest we may be on track for another year of 17 million vehicle sold nationwide, after reaching 1.59 million in May alone.
Perhaps because of this trend, industry-collateral service providers and outright industry newcomers are becoming very interested in entering the market. Last week, the Motor Vehicle Dealer Board’s most-common inquiry was requesting information about how to obtain a used dealer’s license.
The process for getting a used dealer license is remarkably similar to the process for acquiring a new one. The Auto Industry Division provides form DR 2248 as a step-by-step walk through of the requirements to become a dealer, from filling out the application to securing a bond and registering your principal place of business. The form, on the Division’s website, is also linked here. Form DR 2248 was updated in January 2018.
There are, however, advantages of applying for a used dealer’s license if you already hold a new dealer’s license. Any dealer with an active license is exempt from the pre licensing education program. This is typically eight hours’ worth of instruction on the auto industry and its regulations.
When it’s to renew your dealer license, the Auto Industry Division mails a renewal packet 30 days before the license expires. Renewals cannot be done on-line.
As a reminder, if you are operating multiple rooftops, you should be operating each under its own dealer license number, even though they all may share a common ownership.
Should you have any questions, please contact Matthew Groves, at 303-282-1449, or matthew.groves@colorado.auto.
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New tire waste fees are effective
Following multiple questions on Tire Waste Fees this week, I thought it important to issue a reminder that the 2018 fees became effective at the beginning of this year. However, since the registration and reporting requirements remain unchanged under the statute as enacted, the change came about without much fanfare.
Since 2007, retailers of new motor vehicle tires were required to collect a recycling fee of $1.50 for each tire sold, as well as disclosing the fee on the invoice — and file a tax return form for remitting this fee. The fee was set at $1.50 by the Solid and Hazardous Waste Commission. See C.R.S. 30-20-103.
However, as of January 1, 2018, the waste tire fee has been reduced to $0.55 for each new tire sold. The state treasurer will provide this revenue to waste tire administration, enforcement, and cleanup, pursuant to C.R.S. 30-20-1404.
I add this to Open Road because we do not often reference Title 30 for motor vehicle law. If you have any questions about the new fee, or the unchanged requirements to file forms WT-2 or WT-9 regarding the sale of new tires and collections of waste tire fees, please contact Matthew Groves, at matthew.groves@colorado.auto, or 303-282-1449.
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Tesla dominates headlines (still)
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- - CLICK BELOW FOR MORE AUTOMOTIVE NEWS - -
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CADA has a fillable bond request form for new sales people! This new, fillable PDF form makes it easier, faster and more accurate for us to turn around your salesperson bond request. Because there’s no handwriting to decipher with this form, bond turnaround can be faster than ever. Just download the form, electronically fill it out and return to Khorrie Luther (khorrie.luther@colorado.auto). Questions? Call Khorrie: 303.457.5122.
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Upcoming Events & Seminars
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Mastery of Finance for Auto Dealers & Key Leaders workshop
Tuesday, June 19
8 a.m. – 5 p.m.
CADA Headquarters
Details
REGISTER NOW!
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Warranty reimbursement at retail seminars
Various locations and dates below:
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Monday, June 18
DoubleTree by Hilton Hotel Durango
501 Camino Del Rio
Durango, CO 81301
11:30 a.m. – 1:15 p.m.
Lunch included
REGISTER NOW!
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Tuesday, June 19
Holiday Inn Express & Suites Montrose
1391 S. Townsend Avenue
Montrose, CO 81401
7:30 – 9:15 a.m.
Breakfast included
REGISTER NOW!
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Tuesday, June 19
The Hotel Colorado
526 Pine St.
Glenwood Springs, CO 81601
Noon – 2:30 p.m.
Lunch included
REGISTER NOW!
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Monday, June 25
Courtyard by Marriott Pueblo Downtown
110 W City Center Drive
Pueblo, CO 81003
7:30 – 9:15 a.m.
Breakfast included
REGISTER NOW!
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Monday, June 25
Antlers Hotel*
4 S. Cascade Ave.
Colorado Springs, CO 80903 1
1:30 a.m. – 1:15 p.m.
Lunch included
*CSADA members: Registration is included with your dues.
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Tuesday, June 26
SOLD OUT!
CADA Headquarters
290 East Speer Blvd.
Denver, CO 80203
7:30 – 9:15 a.m.
Breakfast included
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Tuesday, June 26
The Ranch Events Complex, Loveland
11:30 a.m. – 1:15 p.m.
REGISTER NOW!
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NEW! Second Denver date!
Wednesday, June 27
CADA Headquarters
290 East Speer Blvd.
7:30 – 9:15 a.m.
Breakfast included
REGISTER NOW!
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ENDORSED PROVIDER / PROGRAMS
For information about any of the Endorsed Provider’s products or services, contact
Polly Penna polly.penna@colorado.auto
303.457.5119 office | 303.945.6426 mobile
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CSA Goes on the Road in June! Colorado Springs -- Grand Junction -- Greeley
REGISTER NOW!
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