CIADA Dealers – Please join the CIADA Dealer Group on Auttr.com!

Visit http://auttr.com/groups/ciada-dealers to visit or join!

Thanks,

L.J. Marhefka
L.J. King and Associates

Welcome to all of the North Carolina Auto Dealers participating in today’s CE class at Manheim North Carolina!

It’s going to be a great day!

L.J. Marhefka

The Risk-Based Pricing Rule takes effect January 1, 2011. The law gives dealers two options: it requires dealers to either send a risk-based pricing notice to certain customers or a new credit score “exception” notice to all credit applicants. The dealer is responsible for providing notices to customers if they are involved in the finance contract directly or indirectly. The trigger for sending the notice is if you pull a credit bureau in determining whether you change the annual percentage rate as a result of increased or decreased risk based on that score.

Check back here at Auttr.com for more information on the Risk-Based Pricing Rule or ask your question directly to the Car Counselor at Auttr.com.

L.J. Marhefka
L.J. King and Associates
email LJ@LJKing.com

The Wall Street Journal is reporting that Sen. Christopher Dodd and Rep. Barney Frank are at odds over who should lead the Consumer Financial Protection Bureau.

Frank, the House Financial Services Committee chairman, has joined his party’s liberal base in pushing for Harvard Law Prof. Elizabeth Warren to head the bureau, and wants her named without delay. Dodd, the Senate banking chairman, questions whether Ms. Warren could get the 60 votes needed for confirmation. He appears to be waging a one-man campaign to persuade the White House to nominate anybody else.

Even if Warren could be confirmed, a heated battle over her in the Senate would likely delay the new agency’s writing of new financial rules, something Dodd wants to avoid. READ MORE…

OIADA Golf Video

Here is a great video from the OIADA 11th Annual Golf Outing at the Little Turtle Country Club in Columbus, Ohio on August 13, 2010. This video shows almost a thousand golf balls being dropped from a helicopter. The numbered ball that is closest to the pin is the winner!

OIADA Helicopter Ball Drop – From the OIADA Golf Outing 8/13/10

Jim Mitchell of the OIADA -

Is this the type of helicopter you will be using at the OIADA Golf Outing on Friday where one lucky winner will win $1,000.00 if his or her ball is the closest to the pin after being dropper from the helicopter?

A few questions:

1. Does one have to be present to win?
2. How much does it cost to participate?

Thanks, L.J.

Just a reminder to everyone – Compliance is your duty, and non-compliance is not an option. Too many times, I have heard business people comment that there is little enforcement, therefore, they’ll just take their chances. As a leader of your entity, you have an obligation and responsibility to remain compliant. And in the event that you are found out of compliance, you may even face jail time.

If you have a question about compliance, you can ask it here on Auttr.com.

L.J. Marhefka
L.J. King and Associates
email LJ@LJKing.com

Jim -

Here are the listed FLSA overtime exemptions:

Exempt from FLSA overtime coverage:

Certain commissioned employees of retail or service establishments;

Auto, truck, trailer, farm implement, boat or aircraft salespersons employed by non manufacturing establishments primarily engaged in selling these items to ultimate purchasers;

Auto, truck, or farm implement parts clerks and mechanics employed by non manufacturing establishments primarily engaged in selling these items to ultimate purchasers;

Railroad and air carrier employees, taxi drivers, certain employees of motor carriers, seamen on American vessels, and local delivery employees paid on approved trip rate plans;

Announcers, news editors and chief engineers of certain non metropolitan broadcasting stations;

Domestic service workers who reside in their employers’ residences;

Employees of motion picture theaters; and

Farmworkers.

Additional notes:

This is because the act contains an exemption called Section 13(b)(10)(a), which exempts from overtime all “salesmen, parts men, and mechanics” employed by an establishment primarily engaged in selling cars. (Note: Some states with overtime laws also exempt mechanics employed by dealerships, while others do not. This means that in states with no overtime law, where employers need only pay attention to the FLSA, as well as in states with overtime laws that include an exemption analogous to 13(a)(10)(a), mechanics employed by dealerships don’t have to be paid overtime. In states that have overtime laws but do not contain an exemption analogous to 13(b)(10)(a), mechanics employed by dealerships would have to get overtime under the state law. Employers in states that have state overtime laws should consult counsel familiar with such state laws to determine if they can be exempt or not.)

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IRVINE, Calif. — New research from the Kelley Blue Book Market Intelligence Group revealed today that more vehicle buyers are apparently turning to used units, as well as tending to pay in cash rather than financing their purchases.

The study findings showed some startling vehicle buyer sentiment about potential purchasing and financing plans.

Stemming from what analysts believe to be unsteady economic conditions, the survey determined most in-market shoppers are planning to spend a relatively small amount of money on their next vehicle purchase. Additionally, KBB found these same consumers are more likely to buy a used vehicle versus a new unit.

Furthermore and most relevant to auto finance companies, more than one-third of in-market vehicle shoppers involved in the survey say they plan to pay the entire cost of their next vehicle purchase in cash, and they are not influenced by incentive offers.

KBB indicated 74 percent of the individuals surveyed plan to purchase a vehicle within the next six months. Of that cluster, more consumers emphasized they are in the market for a used vehicle (67 percent) rather than a new one (33 percent).

Again, returning to what could pique the interest of finance companies, KBB found that 42 percent of used-vehicle shoppers and 20 percent of new-vehicle shoppers said they plan to pay the entire cost of their next vehicle in cash.   …Read More