Tag Archive | "law"

New York Increases Surety Bond Amount for the State’s Used-Vehicle Dealers

NEW YORK — On Sept. 29, Governor Andrew Cuomo signed into law a piece of legislation that will increase the surety bond amounts required for used-vehicle dealers to become licensed. The new requirement will take effect on March 28, 2017.

“The previous bond amount was insufficient to protect consumers,” said Josh Kayser, CEO of SuretyBonds.com. “There’s a certain level of trust customers place in car dealers, and these bonds make it that much easier for dealers to maintain that trust.”

Currently, applicants and used motor vehicle dealers who sold fewer than 200 cars in the previous calendar year only needed a $10,000 bond. Dealers who sold more than 200 vehicles needed a $25,000 bond to become licensed.

Under the new law, used-car dealers who sold fewer than 50 cars in the previous calendar year will be required to purchase a $20,000 surety bond. Dealers who sold more than 50 cars will be required to purchase a $100,000 bond. Additionally, new dealer license applicants will need to post the $20,000 surety bond.

Dealers bonded under current law will be required to comply with the new surety bond requirements with renewal, replacement, alteration or extension of their bond. The state’s Department of Motor Vehicles has not determined if a new surety bond form will be issued, according to Kayser.

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Radogna to Present ‘Reduce Your Exposure’ at Las Vegas Compliance Summit

LAS VEGAS — Jim Radogna, a San Diego-based compliance expert and trainer, will serve as the luncheon speaker at the upcoming Compliance Summit, organizers announced Thursday. The event, which marks Compliance Summit’s first visit to the Western states, will be held Aug. 29–30, 2016, at Paris Las Vegas.

“Jim’s reputation as a nationally recognized expert, trainer and speaker precedes him,” said David Gesualdo, show chair and publisher of Auto Dealer Today and F&I and Showroom. “We are counting on him to identify the pressure points regulators are focusing on and how to button them up.”

Radogna’s session, “Reduce Your Exposure: Who Is Targeting Your Dealership?,” will begin after lunch is served at 12:20 p.m. on Monday, August 29. His presentation is expected to include a rundown of the most currently active state and federal regulators, the results of recent enforcement actions and areas of high risk in variable operations, fixed operations and human resources.

“The laws and regulations impacting auto dealers are many,” Radogna said. “This presentation will focus on the top enforcement threats facing most auto dealers today and how you can prepare and adjust to lessen your dealership’s exposure.”

To register for Compliance Summit, click here. For more information, including sponsorship and exhibition opportunities, contact David Gesualdo via email hidden; JavaScript is required or at 727-947-4027.

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Transportation Bill Paves the Way Toward Digital Vehicle Transactions

WASHINGTON, D.C. — Billed as a down payment for building a 21st century transportation system, the recently passed Fixing America’s Surface Transportation Act, or Fast Act, contains a provision that clears a key hurdle in the industry’s drive toward a fully digital transaction.

Inside the 1,300-page bill President Obama signed into law on Dec. 4 is language that allows states to begin digitizing odometer disclosures, notices and related materials. The language’s inclusion also means states will no longer have to apply to begin accepting electronic signatures on odometer disclosures — a cumbersome process that took years to complete and often didn’t result in approvals.

The law, which will also direct $305 billion in funding toward transportation projects over the next five years, places the responsibility on states to implement appropriate data authentication and security measures.  John Brueggeman, an executive with the Motor Vehicle Software Corp. — a Southern California-based firm founded in 2005 to help states modernize the vehicle registration process — said the e-odometer language removes a key deterrent for states looking to go paperless.

“The paper registration process is outdated,” Brueggeman said. “We live in a digital economy and this new law will not only allow for a faster and more convenient process for automobile buyers, it will also increase accuracy and efficiency at state motor vehicle departments across the county.”

F&I managers should expect immediate benefits once states move to electronic signatures for odometer disclosures, Brueggeman said. They will no longer have to mail handwritten disclosures to the DMV, nor wait for the DMV to receive and manually process the documents before mailing back verifications.

In states that move to electronic disclosures, Brueggeman said dealers will receive immediate confirmation once they input a customer’s signature into their database and then electronically submit it to the DMV. The time saved, he added, should allow F&I managers to spend more time presenting and selling their products to more customers.

“We know that in our business, sending paper to the DMV and back to the dealer was not adding any value in the process of selling a car. It was simply taking time,” Brueggeman said. “The focus for us was to make it more efficient, more transparent, and faster.”

The e-odometer provisions should also help reduce odometer fraud, as the information dealerships enter into a state database will become permanent record. And, if an odometer is altered, there will be a record of that change as well. Either way, Breuggeman said, electronic signatures offer a form of transparency paper can’t match.

“The amazing thing about digital is that we always have a record of what happened and when it happened,” Brueggeman said. “And so you can’t always prevent fraud, but at least this [digital] gives investigators a better chance to track it.”

States have, for the most part, embraced the move to a paperless transaction, with California being the first to adopt electronic lien and titling in 1989. Today, 24 states have implemented some sort of electronics titling program, with five additional states looking to pass legislation that would allow them to digitize the titling process.

The last hurdle was digitizing the federal disclosures. A provision was included in the 2012 federal transportation bill that directed the National Highway Traffic Safety Administration to develop rules to allow for electronic odometer disclosures, but the agency has yet to propose those rules. The 2016 transportation bill means states no longer have to wait for the agency to act.

“The e-odometer language included in the transportation bill removes one of the last major impediments to fully electronic consumer vehicle purchase transactions,” said Brian Maas, president of the California New Car Dealers Association in a press release. “This opens up the field for entrepreneurship and innovation for dealers to move from paper-based transactions to an electronic transaction system.”

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