Video Course Evaluation Form. Atty ID number for Pennsylvania: Name of Course You Just Watched

Transcription

1 Garden State CLE 21 Winthrp Rad Lawrenceville, New Jersey (609) fax Vide Curse Evaluatin Frm Attrney Name Atty ID number fr Pennsylvania: Name f Curse Yu Just Watched Please Circle the Apprpriate Answer Instructrs: Pr Satisfactry Gd Excellent Materials: Pr Satisfactry Gd Excellent CLE Rating: Pr Satisfactry Gd Excellent Required: When yu hear the bell sund, write dwn the secret wrd that appears n yur screen n this frm. Wrd #1 was: Wrd #2 was: Wrd #3 was: Wrd #4 was: What did yu like mst abut the seminar? What criticisms, if any, d yu have? I Certify that I watched, in its entirety, the abve-listed CLE Curse Signature Date Garden State CLE, 21 Winthrp Rd., Lawrenceville, NJ fax

2 GARDEN STATE CLE LESSON PLAN A 1.0 credit curse FREE DOWNLOAD LESSON PLAN AND EVALUATION REPRESENTING AN AUTOMOBILE DEALERSHIP With Rbert Del Srd, Esq. Mayr And featuring Rbert Ramsey, Senir Instructr Prgram descriptin Hey Here s a gd questin. Since it is usually legal fr lawyers t drive a car n a Sunday, why are they (and everyne else) abslutely frbidden frm buying a new mtr vehicle in New Jersey n Sundays? The answer t this and many ther mysteries f the Garden State mtr vehicle sales industry will be answered fr yu in Representing an Autmbile Dealership.

3 Garden State CLE 2 Representing an Autmbile Dealership I. Intrductin Rbert Del Srd, Esq. Mayr II. III. New Jersey Sales Mdel Peple g t salesrm, peple lk at mdel they want, paperwrk is cmpleted, financing may nt be cmpleted, but custmer is able t take car hme Peple get a chance t shw the car t their family and friends with hpes that they will want t keep the car Called spt delivery the nemesis f every dealer in NJ Custmers sign a dcument that if cannt get financing then must return car nly wrks if they use the dealer plate Dealers dn t want t lse dealer plates fr the weekend s instead use private plates f custmers and then put temprary registratin n vehicle With temprary registratin, in the eyes f NJ DMV that vehicle has been titled t that wner cannt remve the temprary S if persn des nt get financing, persn must return the car persn must turn ver car mst peple will return but sme peple will nt and will frce dealership t get financing frm anywhere t cmplete the deal Title is cnsidered passed even if it has nt been paid fr temprary tag that vehicle is nw prperty f persn t whm registratin was issued Internet has changed business Mre savvy custmers Internet has allwed peple t be mre infrmed cnsumers Dealerships must have t address these issues Certain peple wh dealers call internet custmers persn has cntacted all dealers in area and wants t pay $X fr this car and whever gets clsest t that price will get the sale Anther type f internet custmer: custmer wh has researched vehicle and knws cst and that yu have the vehicle and is interested in that car Anther type: real internet custmer cmes in with Kellie bluebk value and wants that mney fr his trade in

4 Garden State CLE 3 Representing an Autmbile Dealership Mst f peple may have knwledge f yur stck and what they think is the invice n the vehicle and the price fr yur trade in Rebates are always pssible nt smething that internet custmers will knw IV. Fundamental NJ law Hw many cars d yu need t sell in rder t be cnsidered a car dealer? DMV says that if yu transfer mre than 5 cars per year then yu are a car dealer and must have the requisite paperwrk Avid the DMV regulatins then cars are in different family member s name, a number f cars less than the 5 t avid DMV regulatins curb a car the dealer des nt have a lt but will put the car at a gas statin, r smewhere fr sale as if the car was their car jumping a title dealers will buy car frm a persn and have the seller sign the title ver, but will nt transfer title at DMV, then when they g t resell the car, the buyer signs and it lks as if the riginal seller sld t the current buyer and the dealer just has the mney frm the prfit made Make sure yu fill ut the title because it is an pen title because the vehicle remains in the name f the seller and therefre that seller is liable fr the vehicle until title is transferred When sell vehicle make a cpy f frnt and back f title and be sure t cmplete in its entirety When nt taking title, then nt cllecting sales tax V. Cnsumers selling cars Cmplete full title, frnt and back and make a cpy Put buyer s name and infrmatin n the back, all infrmatin, including driver s license, and persnal infrmatin prtect yurself Real dealers will take sales tax and turn it ver t DMV/State f NJ, while private sales yu must g t DMV and pay sales tax

5 Garden State CLE 4 Representing an Autmbile Dealership VI. Yu want t becme a dealer nw what? Lcatin restricted, mst twns dn t allw used car dealers must have physical lcatin cannt have internet/virtual cmpany DMV wants t be able t send inspectrs t check paperwrk n every car Apply t DMV and cmplete applicatin simple applicatin must be signed by zning fficer r twn clerk that it is an apprved lcatin withut signature yu cannt g further If yu have a licensed dealership available, there are a number f peple wh are interested in purchasing a little nest egg Inventry must be n the premises peridically send peple t check inventry flr planning check persn wh is there t check inventry must cmplete by hand VIN numbers fr varius vehicles (like fill in the blank because sme numbers are missing) insures physical bservatin f the vehicles Criteria fr future success as a dealer: Expsure t traffic Nearness t places t dispse f vehicles (Brdentwn) NADE Natinal Aut Dealers Exchange part f Manheim Aut Grup aut auctin where a dealer can either dispse f inventry r can purchase inventry mstly used cars, may be sme instances f cars that are nt titled pen nly t dealers Pay a fee at the auctins t register as seller and pay a fee t buy a car, at NADE pay additinal amunt fr title insurance t insure gd title Cars sld in varius cnditins, frm perfect t as is Why d dealerships g ut f business? Marketing Demgraphics change Buildings get deterirated franchise dealers eventually have t spend mney t upgrade the building what prducts they are selling pr management

6 Garden State CLE 5 Representing an Autmbile Dealership Saturn GM had t refine their business plan but Saturn (as well as Oldsmbile, Pntiac, and Hummer) did nt fit int the new business plan Cnsumer trend Car manufacturers are updating vehicles, i.e. trucks have mre luxurius interirs Used t be that pickup trucks were assciated with farmers nw they are mre acceptable as 2 nd r 3 rd vehicles in a husehld SUVs have replaced statin wagns Attrneys fr dealerships must knw varius issues Must discuss with dealers rdinance issues, hw receptive is the municipality, is zning there, is planning there, is lcatin there, financial stability DMV wants t knw if yu have experience simple experience (i.e. wrked fr dealer, been a mechanic) appeal prcedure if yu are denied license DMV des nt want dealership t fail Keeping prper recrds Remitting sales tax, etc. Dealers wh have license cme t attrney s ffice fr advice Shuld a dealer have their wn inventry r have a flr plan Flr plan csts 1% f mnth but leaves yu with capital t cnduct yur business Unless yu have $$ it is t expensive t have yur wn inventry Flr plan hw des it wrk? depends n bank, may be interest nly, lan is secured by the dealer signature and real estate curtailment banks peridically lk at perfrmance and if there are n prblems and paid debt, banks want financing paper t have custmer cme t their bank t finance the individual custmer s car wrking relatinship with this bank and thse with prime credit scres are

7 Garden State CLE 6 Representing an Autmbile Dealership ffered best rate with bank that prvided the flr plan Hidden rebate t the custmer with high credit scre if ging t finance with bank that has the flr plan Flr plan mst attractive rate n new cars Flr plan is alter eg f car manufacturer Used cars prtin f flr plan dedicated t used vehicles, but cannt exceed that prtin Depreciatin value n brand new car - $3000 belw invice when drive it ff the lt Car dealers wh buy back cars in the same mdel year want t buy back at $3-5K under invice Vehicle culd be purchased fr invice frm manufacturer dealer lses incentive if yu bring the car back Nw a used car even if drve 1 blck financing is mre difficult because banks want t sell sales cars, nt used cars Peple make emtinal decisins when buying a car, i.e. certain clrs, etc. nt just a practical purchase, big investment N 3 day right f rescissin in NJ when purchasing a car except if papers were executed utside f the dealership, if they are dne inside the dealership, the deal is finalized VII. Cnsumer Fraud cmplaints spt delivery - when take car hme with prmise f certain financing, but then cannt get it and custmer has t pay mre mney t keep the car Dealers are nw videtaping t prtect themselves Legal advice t prtect against these issues? NJ Cnsumer Fraud Law, NJSA 56:8-1, et seq. Law itself is misused sme attrneys have their wn practice representing peple fr cnsumer fraud law was riginally made fr the Attrney General t prsecute thse business wh were nt acting within the law the law was later mdified s that an individual attrney r persn can use law fr purpses f suing and getting treble damages

8 Garden State CLE 7 Representing an Autmbile Dealership Within 10 days after filing a cmplaint yu must ntify Attrney General mst attrneys and mst judges dn t knw this but can dismiss treble damages if this step is nt cmpleted Under the law, attrneys fees and treble damages can be awarded Advise dealership/clients t have a war chest available budget item t draw frm in rder t pay a claim as ppsed t risking a cnsumer fraud case Advise clients t d the fllwing: Check any vehicle and recrds f maintenance fr each vehicle t determine whether knew f deficiency in car, i.e. if had bad CarFax, have buyers sign bad CarFax s that peple are aware, be upfrnt abut car s issues Tell peple abut financing and any hidden charges be up frnt g ver cntract line by line Videtape frnt end prblems he didn t tell me claims Training issue emplyee handbk prepared by the attrney Careful abut wh yu hire n licensing fr aut sales in NJ, but licensing des exist in PA VIII. Lemn Law, NJS 56:12-29 thrugh 49 Nt as bad fr new car dealer and used car dealers there are bth types f lemn laws New car lemn law if there are cmplaints, then manufacturer addresses these issues, cmplaints name dealer but dealer takes a back dr and manufacturer usually deals with the cmplaint Used t have t g t arbitratin, but nt anymre dealers liked arbitratin because arbitratrs knew a bit abut cars and the business Used car lemn laws state that any vehicle under 60K miles falls within statute, therefre at auctin 61K is advertised because then lemn laws d nt apply Remedy t cnsumer can return vehicle and all mney returned plus attrney fees; cmplete fraud = treble damages, wner can keep vehicle, and attrney gets paid

9 Garden State CLE 8 Representing an Autmbile Dealership Attrneys wh d this type f wrk have mechanics that wrk fr law firm and mechanic will then determine if there is an issue with yur car and nw is the expert in the case Mentality that used car dealers are lying IX. Car leases Big depsit up frnt and the limitatins n mileage that yu can drive Dealer is trying t create used car market Dealer makes mney servicing and selling used cars When return the vehicle n a lease then there are all kinds f fees invlved fr minr damage and fr mileage verages Mre peple are leasing nw used t be the businesses were the nly lessrs Dealers are able t get the leasing cmpanies t accept lesser quality creditrs because they dn t lse title t the vehicle n repssessin Financing cmpanies are bundling their lans X. Hybrid dealerships Mtrcycle dealerships Manufacturers are smetimes cnnected t autmbile manufacturers s quality f dealer is clse r the same as new aut dealer Same licensing Issue f whether can sell used mtrcycles if yu are a car dealer, r vice versa Their mney is made in service department pker runs mtrcycle rides t mtrcycle shp marketing Cmmercial trucking Licensed as new car dealership Dealer must be careful nt putting intentinally dangerus vehicle n the rad Mst very reputable because cannt affrd t put bad truck n the rad Mstly dealing with big crpratins s nt s much dealing with cnsumer fraud Pickup trucks, vans, buses N different legal issues

10 Garden State CLE 9 Representing an Autmbile Dealership Pick up trucks and vans sld by regular dealerships Larger vehicles fr cnstructin GM will nt sell anything directly marketing dealers Nt applicable fr NJ cnsumer fraud because usually a business t business transactin Japanese cmmitment t ttal quality assurance Limitatin n imprtatin NO If yu have a truck that is nt made in US, then 25% tariff put n the vehicle when imprted As lng as 75% is assembled in US, then n tariff XI. XII. XIII. Future fr dealers?? Virtual lcatin v. physical lcatin? Fr a prfit mtive, least amunt f mney spent n lcatin is greater amunt f prfit but nt a cmplete dealership Lcatin is needed very difficult fr DMV t let peple be internet dealers What is s wrng with the idea f buying a car at a dealership n a Sunday?? Dealers want t be clsed have a day ff Dealers used t clsed n Fridays at 5pm then mre aggressive dealers were staying pen later Mst f new car dealers are clsed n Sunday and as lng as n ne pushes fr it, then it is nt prblematic Blue laws prhibit but ultimately dealers are nt pushing fr it Imprtant advice t thse wh want t be car dealers Be financially stable and have decent backgrund t cnduct business in prfitable manner Lcatin