CIADA CE Program at Manheim – Kenly, NC
12:10 pm in post by L.J. Marhefka
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
You are browsing the archive for L.J. Marhefka.
Information on the Risk-Based Pricing Rule
10:30 am in post by 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
Who Will Lead New Consumer Financial Protection Bureau?
2:09 pm in Uncategorized by L.J. Marhefka
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 Helicopter Ball Drop – From the OI…
8:41 pm in Uncategorized by L.J. Marhefka
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
COMPLIANCE is your duty, not an option!
12:12 pm in post by L.J. Marhefka
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
Automobile Dealership Employee Overtime Exemptions
11:44 am in post by L.J. Marhefka
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.)
KBB: More Consumers Turn to Used Units, Plan to Pay with Cash
10:13 pm in Uncategorized by L.J. Marhefka
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
Fight Over Consumer Agency Looms as Overhaul Is Signed
1:44 am in Uncategorized by L.J. Marhefka
WASHINGTON—President Barack Obama on Wednesday signed into law the most sweeping financial overhaul since the Depression, putting the country on a course toward a more muscular regulatory framework.
The law gives the government authority to take over and liquidate failing financial firms, injects transparency into transactions involving financial instruments called derivatives and will restrict banks from making risky bets with their own capital. It directs agencies to write hundreds of new rules.
But one provision that barely survived will have the most direct bearing on millions of ordinary people’s lives: a new agency meant to protect consumers from abusive financial products, called the Bureau of Consumer Financial Protection.
The proposal was the source of some of the most intense debates in the long struggle over the financial-regulatory overhaul, and the battles are far from over.
The biggest looming one is over who will head the agency, and that heated up this week as liberal groups insisted the White House give the job to Elizabeth Warren of Harvard Law School—whose idea the agency was. Banking groups were urging key senators to oppose Ms. Warren, calling her an activist who would impose policies they argue would hurt the availability of credit, especially for those with low incomes. Click here to read more!
Used Car Leasing / Lease Here – Pay Here
1:30 pm in post by L.J. Marhefka
I was at the NIADA (National Independent Automobile Dealers Association) Annual Convention in Las Vegas in June where I noticed an increased attention to RTO (Rent-To-Own) and LTO (Lease To Own) as a model to provide transportation financing options.
One of the great advantages to the LTO model for consumers is the availability to flexible transportation. Most of the LTO contracts I have seen have are renewable which limits the consumers commitment. This means that the consumer can drive several different automobiles during the same term as the typical BHPH cycle. Of course, each time the consumer re-contracts a lease to own vehicle, they need an additional “down payment (actually a “Capitalized Cost Reduction”).
A great deal for the dealership is the ability to take the asset depreciation and in some states, the deferment of sales tax liability. While this may be a great option for some dealers, be careful! There are many ways to utilize RTO or Lease to Own in your sales/ financing model, however, there is only one way to do it right!
If you are interested in learning more about Automobile Lease-To-Own Programs, please contact L.J. Marhefka at L.J. King and Associates by email at LJ@LJKing.com.
Thanks,
L.J. Marhefka
L.J. King and Associates
email LJ@LJKing.com
Auto Dealers – Are your delivery documents compliant?
11:42 am in post by L.J. Marhefka
I was speaking with an auto dealer recently who operates a BHPH dealership in the mid-west. He asked me if I would take a quick look at his delivery documents. Instantly, I knew his paperwork was terrible. When asked where he obtained his paperwork, he answered, “from a guy who stops by and sells oil pens, mirror hangers, and tire shine.” Needless to say, he was horrified when I advised that he likely didn’t have sufficient paperwork to legally repossess any of his delivered vehicles (in the event of non-payment). This was somewhat of a problem for the gentlemen since he has over 300 cars on the books.
Where do you get your paperwork? How do you know it is compliant?
If you have a question regarding your paperwork, send a message to me on Auttr.com or an email to lj@ljking.com.
Remember, often doing it right is easier than doing it wrong!
Have a great day!
L.J. Marhefka
L.J. King and Associates
email LJ@LJKing.com
