DoD puts dealers who sell to military in tough spot
This week’s key number: 13.2
13.2 represents the average age of all licensed motor vehicles on Colorado’s roads. It’s the oldest fleet on record, even while new car dealers sold more new and late model used cars in 2017 than any year in state history.
Don't miss out on these!
DoD 'unexempts' sale of GAP or credit life

Puts dealers' compliance with
Military Lending Act at risk


If you sell to members of the Armed Forces, a Department of Defense rule announced by NADA last month prompts liability concerns for your dealership. That's because the law has suddenly changed — and may have serious ramifications for dealers.

While Congress created the Military Lending Act in 2006 to restrict extending consumer credit to active duty military, Guard and Reserve, motor vehicle-financed sales were exempt from these requirements.

The DoD announced last month that it had re-interpreted the rule to 'unexempt' the sale of GAP or Credit life by dealers. That means ALL transactions that include GAP or credit life are affected, dating back to October 3, 2016!

CADA urges you to attend a special webinar:

Military Lending Act: Can dealers comply?
Friday, January 26, 2018
8:00 a.m

This webinar is led by Fairfield and Woods' Randy Earnest and CADA VP of Legal, Regulatory & Compliance Matthew Groves. And because this is a webinar, there's no need to leave the office; just dial in to learn how to get on the 'right' side of the law — and what to do about all those transactions you've had since October 3, 2016.
Register now!
For more information, click here to download the information sheet!

During the webinar, you'll learn who is a 'covered person' and what is a 'covered transaction.' You'll find out the effect the Military Lending Act has on your sales, what the penalties are for violating the Act and how to avoid them. Most importantly, you'll discover what you need to know now for your dealership.
Register today!

About our Presenters

Director of Fairfield and Woods, P.C. Randy Earnest has represented dealers throughout Colorado and the Rocky Mountain West. And for more than 30 years, Director Michael J. Dommermuth has represented motor vehicle dealers throughout Colorado and the Rocky Mountain West. Fairfield and Woods, PC provides full-service representation of motor vehicle dealers, including buy/sell agreements, franchise, dealer succession and federal and state compliance.

Since 2017, Matthew Groves has served as CADA Vice President of Legal, Regulatory & Compliance. Previously, he served the U.S. House of Representatives for five years, creating national security policy and conducting oversight on the Department of Defense and Intelligence communities.

Groves participated in the development of five National defense Authorization Acts and the 2016 amendments to the Military Lending Act.

The details
Friday, January 26, 2018
8 - 9:30 a.m. Presentation, Q&A

Webinar - call-in access will be shared after registering

Title Processing Fundamentals
January 24 – 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
When & Where

Wednesday, January 24
Denver, CADA Headquarters
290 E. Speer Blvd.
8 – 10:30 a.m.

Loveland, Embassy Suites by Hilton Loveland Hotel Conference Center & Spa
4705 Clydesdale Pkwy.
Noon – 2:30 p.m.

Thursday, January 25
Colorado Springs, Antlers Hotel
4 S Cascade Ave.
8 – 10:30 a.m.

Pueblo, 3200 8th Ave.
Noon – 2:30 p.m.

Just  added!
Wednesday,  February  14

CADA  Headquarters
290  E.  Speer  Blvd.
Denver  80203
7:30  a.m.
Breakfast  and networking
8  –  10:30  a.m.
Get the details!
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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
Temporary tags require temporary tag holders
By Matthew Groves, VP Regulatory & Compliance

This is a reminder that when your dealership issues a temporary tag for a new motor vehicle sale, it must be accompanied by a clear plastic temporary tag holder. As CADA employees have been out travelling the state, we have noticed a growing trend of dealers housing temporary tags inside of their license plate holders.

Rule 34, of the Regulation 1 CCR 204-10 (text here), under the authority of Colorado Revised Statute 42-3-203 (text here),  requires:
  • “Temporary permits should be affixed to the rear of the vehicle in the area normally designed for the normal placement of the license plate. Dealers may place the temporary permits in plastic/protective bags or holders as long as the bags or holders do not cover, distort or make unreadable any part of the temporary permit. Temporary permits may be placed on the inside of the vehicle or on the inside rear window provided the temporary permit is readable.”
Use of dealer plate holders sometimes obscures a portion of the information on the temporary tags. This block is the principal reason that the Department of Motor Vehicles moved the temporary tags from posting inside the rear windshield to the rear exterior of the vehicle. Use of these non-approved plate holders could result in a traffic citation issued by state law enforcement.

If you have any questions please send me an e-mail
( or call: 303.282.1449.
Upcoming Events & Seminars
Impact of the Tax Cuts & Jobs Act on Auto Dealers

The most-sweeping overhaul to our tax code in 30 years was signed into law December 22, 2017 in the form of the Tax Cuts & Jobs Act. Nearly every taxpayer in the country will be affected by this legislation.

And while the bill includes an NADA-led amendment to preserve 100 percent deductibility of interest on floor plan loans, many of the final legislation’s provisions deal with complex areas of taxation that could affect your dealership’s — and your — bottom line.

It’s why CADA asked EKS&H to develop this important and timely seminar for you, your CFO and your controller.

You’ll learn:
  • What the 20 percent qualified business income deduction on some dealerships mean to those businesses
  • New business interest expense limitation
  • Exemption for floor plan interest and its e ect on your 2018 taxes
  • Impact of the $500,000 business loss limitation to dealer owners
  • Changes to individual and corporate tax rates
  • Changes to deductibility of meals and entertainment expenses
  • Changes to estate and gift taxation
Register now!
When and Where

Tuesday, February 13,
CADA Headquarters
290 E. Speer Blvd.
Denver 80203
7:30 a.m. Breakfast and networking
8 – 9:30 a.m. Presentation, Q&A
Get the details!

For information about any of the Endorsed Provider’s products or services, contact
Polly Penna 
303.457.5119 office  |  303.945.6426  mobile
Copyright © 2018 CADA, All rights reserved.

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