Colorado’s new car and light registrations continue year-long trend upward
CADA Holiday Hours
So CADA staff can celebrate the season with family and friends, CADA offices will be closed:

Monday, December 25, 2017
Monday, January 1, 2018

We wish you all the best this holiday season!
Harassment Prevention for
Managers and Supervisors
Every day, we see or hear in the news that another public servant, Hollywood producer, actor or anchor/TV host is facing harassment charges.
While dealers aren’t playing in the same league as those in the national spotlight, the effects of an accusation can be crippling — on the accused individual AND your business. What’s more, if any action is filed against a dealership’s supervisor or manager, the business is usually named in the suit.
The EEOC’s recent Task Force on the Study of Harassment in the Workplace revealed that too many people in too many workplaces find themselves in unacceptably harassing situations. Other surveys have shown that 9 of 10 employers will receive an internal harassment complaint this year.
Blow off the complaint at your own peril!
Providing managers and supervisors with appropriate training is one of the key ways a dealership can prevent liability for harassment claims and avoid retaliation claims. If you or your team leaders do not know the difference between inappropriate conduct in the workplace and behavior that rises to the level of illegal harassment, this seminar is for you.
Led by Attorney Sean Read, with Employers Council (formerly Mountain States Employers Council), Harassment Prevention for Managers and Supervisors is a must-attend seminar for all team leaders within your dealership.
You’ll learn
  • What constitutes illegal harassment
  • EEOC guidelines and employer liability, including when an employer can be held strictly liable for a supervisor’s harassment
  • Strategies to address inappropriate behavior that may lead to illegal harassment
  • How to prevent liability for workplace harassment and guard against retaliation claims
  • Defenses to employer liability
About our presenter
Sean Reed joined Employers Council as an attorney in August 2015. He counsels and represents members on employment law, including pay issues, discrimination and unemployment. Before joining the Council, he worked for a plaintiff-side employment firm in Minnesota, and investigated discrimination claims for the state of Colorado.
Reed received his BA in Political Science from Colorado State University and later received his JD from the University of Colorado.
Register now!
The details
What: Harassment Prevention for Managers and Supervisors
When: Tuesday, January 9, 2018
8 a.m. – 10 a.m.
Where: Media Center
CADA Headquarters
290 E. Speer Blvd.
Denver, CO  80203
$159    First registration
$139    Subsequent registrations
Get the details!
Title Processing Fundamentals
January 22 – 25, 2018

Back by popular demand, Title Processing Fundamentals is designed for dealership title clerks and processors with fewer than six months’ experience — or as a refresher for title clerks, controllers and office staff. This this 2.5-hour seminar recaps DMV requirements and updates, including:
  • Latest rules on new temporary registration permits — and your ability to issue a second permit
  • Electronic Lien Titling (ELT) — How it works & updates
  • Recent state law clarification for lien perfection requirements
  • Sales & use tax recap and reform efforts
  • Out-of-state sales and title transfers
  • Unusual titling situations
  • Repossessions & ELT requirements
  • Secure Power of Attorney
  • Power of Attorney/trust documents, dates & lien releases
  • County rejects and reading a registration
  • Q&A — Bring examples or issues you want to cover
These classes fill up fast!
Register today!
Tuesday, January 23
Grand Junction
8 – 10:30 a.m.

Glenwood Springs
12:30 – 3 p.m.

Wednesday, January 24
8 – 10:30 a.m.

Noon – 2:30 p.m.

Thursday, January 25
Colorado Springs
8 – 10:30 a.m.

Noon – 2:30 p.m.
Get the details!
New record!

Clear the Air Foundation has received 602 cars (so far) this year!

Each car you donate to the Foundation becomes a scholarship for an auto tech student, and quite possibly, a future employee for your dealership!
Help a student.
Help the environment.
Help yourself.

There’s still time! If every member dealer that takes in a $500 or under car in trade donates just one of those cars, we’ll reach our goals this year. And if you don’t take those cars in trade, donate the value of one of those cars.

So donate just one car this week.

Just one.

You’ll change a life.
You may even boost your bottom line.

To make a donation, contact George Billings, Director: 303.775.8896
Automotive News...
December U.S. sales predicted to be strong, but down from 2016
But not in Colorado!
Colorado’s new car and light truck registrations improved 6.4% for the first 11 months of 2017
Truck, SUV automobile sales continue to outpace cars in November
CADA Insurance Services
Your renewal for your health benefits is probably due. Just like getting a second opinion on your personal health, call CADA Insurance Services to get a complete analysis on the benefits you offer your employees. You may be surprised at the savings — and increased benefit coverage — you and your employees could enjoy. Call Craig Gordon today to find out how much you can save.
Call Craig Gordon today to find out how much you can save!
Bonds & Forms
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 ( Questions? Call Khorrie: 303.457.5122.
Download the form
Contact Khorrie
Regulatory & Compliance
New rule prompts liability concerns for dealers who sell to military

NADA is urging all dealers who sell to members of the military to immediately review new DOD interpretation of federal law and consult with legal counsel
A Department of Defense (DOD) interpretation of the Military Lending Act (MLA) issued today could have severe implications for all dealers who sell or have sold vehicles to members of U.S. armed forces.
According to the new interpretation of the MLA, if, as part of a vehicle financing transaction with a military consumer or his or her dependent, a creditor (i) extends financing for a credit-related product or service (such as GAP insurance or credit insurance), or (ii) provides cash out financing, the creditor must comply with the full range of duties and restrictions imposed by the MLA.  The interpretation is in effect today and applies to all transactions since October 3, 2016.  
As a result, it is essential that dealers immediately consult with their legal counsel to determine -
(i)  whether to continue offering such products to military consumers and their dependents, and
(ii) if the dealer intends to continue offering such products, the actions dealers must immediately implement to comply with the MLA requirements.
Because DOD issued its interpretation without notice or an opportunity to comment, NADA and other industry trade associations did not have a chance to explain (i) why they believe DOD's interpretation concerning credit-related products or services is inconsistent with the Military Lending Act, or (ii) how the DOD Interpretation will harm military members and the dealers and auto lenders who serve them.  NADA is working expeditiously with multiple federal agencies and members of Congress to address these issues.     
We have provided below more detailed information on the topic for dealers to share with their legal counsel.

What Prompted This Alert and Next Steps
  • The MLA imposes a series of duties and restrictions on creditors who extend credit to certain military members (generally active duty personnel) and their dependents. 
  • There are several exemptions to these requirements, including for any credit transaction that is expressly intended to finance the purchase of (i) a motor vehicle when the credit is secured by the motor vehicle being purchased, or (ii) other personal property when the credit is secured by the personal property being purchased.  
  • When the MLA originally took effect in 2007, it only covered three narrow categories of consumer credit.  In 2015, DOD issued a regulation which took effect October 3, 2016 that greatly expanded the types of consumer credit covered by the MLA (generally expanding coverage to any type of credit covered by the Truth In Lending Act).  However, the exceptions for motor vehicle financing and other personal property financing mentioned above that were created by Congress remained. 
  • Shortly before the 2016 amendment took effect, DOD issued a narrow interpretation of the personal property financing exclusion which generally stated that financing items beyond the personal property being financed took the transaction outside the scope of the personal property exception to the MLA's requirements.  This raised the question of whether DOD took a similar narrow view of the identically worded motor vehicle financing exclusion.  (NADA issued an all member communication on the topic on September 29, 2016.)  Today's interpretation addresses that issue. 
  • In today's Interpretation, DOD states that whether extending credit in an amount greater than the purchase price of the motor vehicle being financed takes the transaction outside of the motor vehicle financing exclusion depends on what the credit beyond the purchase price is used to finance.  It states: "Generally, financing costs related to the object securing the credit will not disqualify the transaction from the exceptions, but financing credit-related costs will disqualify the transaction from the exceptions." 
    • Examples of items in the first category that DOD recognizes as qualifying for the exception to the MLA requirements include financing for "optional leather seats within that vehicle and an extended warranty for service of that vehicle" as well as financing negative trade equity. 
    • Examples of items in the second category that DOD recognizes as taking the transaction outside of the exception to the MLA requirements include financing "Guaranteed Auto Protection insurance or a credit insurance premium" as well as "additional 'cashout' financing."
  • Consequently, DOD believes that dealers and other creditors who finance GAP or other credit insurance – or who provide cash-out financing – as part of a motor vehicle financing transaction with a service member or a dependent do not qualify for the motor vehicle financing exclusion to the Military Lending Act.  DOD's Interpretation applies to all contracts entered into since the date of the amended rule (October 3, 2016).
Next Steps – In order to determine appropriate next steps, dealers will require guidance from their legal counsel.  To assist with this process, we suggest: 

1)  Reviewing 2)  Knowing which consumers are covered by the rule (see the definition of a "covered borrower" at 32 CFR § 232.3 and the safe harbor for determining whether a consumer is a covered borrower at 32 CFR § 232.5(b));
3)  Knowing what the rule requires and prohibits (see 32 CFR §§ 232.4, 232.6, and 232.8);
4)  Knowing the penalties for non-compliance (see 32 CFR § 232.9); and
5)  Knowing what additional state law considerations may apply.
  • NADA will disseminate additional information on this topic as it becomes available.
The foregoing is offered for informational purposes only and is not intended as legal advice.
Upcoming Events & Seminars
Advertising Compliance
(available online)

CLICK HERE for more information
To purchase a copy, please contact:
CADA Headquarters: 303.831.1722

Endorsed Provider News

Federated Insurance Names Szymanski
Director of Association
Risk Management Services

Federated Insurance is pleased to announce David Szymanski as the Director of Association Risk Management Services effective January 1, 2018. David will lead the ARMS function in addition to his current role as Director of Home Marketing Services.

Szymanski brings a wealth of experience to the Director of ARMS position. He joined Federated Insurance in 1989 as a marketing representative in West Virginia. In subsequent years, he served as a district marketing manager, regional marketing manager, and director of home office marketing services.

In April 2015, Szymanski was appointed a Vice President of Federated Insurance and most recently, he has served as First Vice President.

“Dave has had tremendous success in every role he’s been assigned,” Federated Insurance Senior Vice President, Director of Insurance Operations Nick Lower stated. “He is focused on Federated’s core values and disciplines; and, also has a deep sense of belief in our mission of helping our clients achieve success.”

Founded in 1904, Federated Insurance is a national insurance and risk management organization that serves the property, casualty, health, and life insurance needs of clients in select industries. The organization has hundreds of recommendations from state, regional, and national associations and buying groups and is rated A+ (Superior) by industry analyst A.M. Best®.
Top 10 Trends Impacting the Automotive Industry Today

Over the last decade, the automotive industry has experienced record lows followed by record highs. While the future is full of uncertainty, it is also full of opportunity, and Cox Automotive strives to help clients navigate this ever-changing marketplace. Click here to learn the 10 trends that we believe will have the greatest impact on automotive businesses in the near-term and long-term. Read more.

For information about any of the Endorsed Provider’s products or services, contact
Polly Penna 
303.457.5119 office  |  303.945.6426  mobile
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