Industry news and updates for Michigan's franchised dealers.

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MADA Fast Facts

March 1, 2024

Vol. 26 | Issue 9

Please welcome Mr. James Fackler as the new MADA executive vice president, effective today. As we mentioned previously, James has been the MADA Director of Regulatory Compliance for 18 months and worked in various leadership positions with the Secretary of State's office prior to that. James has been preparing to take on this new role, following Terry Burns' 2023 notification to the MADA board that he would be stepping down.

We encourage all members to extend a warm welcome to James, contact him with any questions and take this opportunity to share your thoughts and suggestions for the association. Your insights will be instrumental in continuing to shape the direction of our association.

Meet James at the Spring Dealer Meeting

Please also register for the upcoming membership meeting on May 14, where you can meet James, network with colleagues and gain insight on the future of automotive retailing.

Our keynote speaker will be Glenn Mercer, an independent automotive researcher with over 35 years of automotive experience. Mr. Mercer has led project work for investment firms, has been an advisor to industry entities (including NADA) a board member for automotive firms, an expert witness in automotive cases and a lecturer on automotive economics in academia. His "Dealership of Tomorrow" presentation will discuss software-defined vehicles, EVs, changing channels (dealers, agents, direct-to-customer), AI in retailing, China (batteries/exporter) and more!

MADA Spring Dealer Meeting

Tuesday, May 14, 2024

Eagle Eye Banquet Center | Bath, MI

See the event handout for more information (registration is on page 2). Dealers may alternately register online here.

Eric Bowden with Colombo & Colombo, P.C. has asked that we remind dealers to be familiar with proper completion of the RD-108 as it relates to lease buy-out processes. Please share with staff who handle this paperwork. The Michigan Department of State (MDOS) is frequently citing dealers for failure to comply with the lease buy-out procedures set forth in the Dealer Manual. Following is a quick overview, but dealers should also review Chapter 3, Section 3-4 of the Dealer Manual for additional information.  

PURCHASE: purchaser's first visit to the dealership

• Record purchase date where indicated at top of the RD-108.
• In remarks section, record the words "Off-Lease Purchase" along with current mileage.
• Purchaser signs RD-108 and is given a copy (along with copies of all other signed documents).
• Enter sale information in Police Book.
• The lessor (lender) receives the purchase price and has 21 days to mail the title to the dealer.

DELIVERY: purchaser's second visit to the dealership

• Once the dealer receives the title, the lessee returns to complete the transaction.  
• The title is properly assigned to the Purchaser, including the odometer mileage disclosure statement. (The Dealer may not sign the title on behalf of the Purchaser.)
• Enter the delivery date where indicted at top of the RD-108. (For off-lease purchases only, a dealer may hand write the delivery date.)
• Record the current mileage of the vehicle in the “Odometer mileage disclosure” section. (Must match the mileage entered in the title’s odometer mileage disclosure statement.)
• At the time of delivery, provide the Purchaser a second copy of the RD-108 showing the delivery date and mileage. (MDOS indicates a dealer can use the original RD-108 and make a copy.)
• The Dealer has 21 days to apply to the SOS for the Purchaser’s title and registration after the title has been received from the lessor.

Eric has prepared a more detailed infographic showing the relevant sections of the RD-108, along with information to be listed in each location. Please reach out to MADA if you have additional questions.

Other Common Violations on the Sales Side

Filing the Application of Title. Failure to make application for title and registration in purchaser’s name within 21 days of vehicle delivery

Police book. MDOS agents will walk the lot and then pull ten deals to verify the title. Review your police book to ensure it is completed properly, including the color of the vehicle. Please note that many DMS are not populating the color of the vehicle properly, and this has been an issue with the MDOS 

Trade in Titles. Two copies of the trade title must be in the deal jacket, one when it is assigned to the dealer and another once assigned to the purchaser, copy of the front and back for both. A copy of the title when purchased and when sold should be in the deal jacket.

Used Vehicle Titles. Failure to possess the vehicle title before consummating the sale with the customer. 

The NADA Workforce Study is the only authoritative and comprehensive examination of car and truck dealership employee compensation, benefits, turnover, retention, demographics, hiring trends, hours of operation and more. This study provides the latest workforce trends nationally and regionally as well as non-luxury vs. luxury brands. In addition, you can also see data across various sales volume ranges from low, medium, and high-volume stores. 

Participants use the data from this study to evaluate their operations with regards to employee turnover and retention, benefits offerings, pay, hiring and training. MADA and other state associations use this data to show state leaders the valuable employment benefits dealers provide.

While participation does involve some effort to upload the needed dealership data, participation is free for NADA members and the data you receive in return is invaluable to your business operations.

What do you get for participating in the study? 

1. Custom Comparison Report: How Your Dealership Compares

• Your data vs. peer group of data

2. National & Regional Trends: NADA National & Regional Trends in Compensation, Benefits & Retention Report 

• Summary and Analysis of all participants' collective data broken down by sales volume and regionally

3. Online Database & Search Tool

• Custom search 60+ positions for compensation and tenure data filtering by state, brand, sales volume, manufacturer, zip code radius and more. One year access.

Also see key figures from last year, plus a preview of what dealers receive:

• NADA member handout
• ATD member handout

NADA Academy Graduates

MADA is pleased to share a list of additional Michigan employees who recently graduated from NADA Academy.

• Teresa Clemetson | Alma Chrysler Jeep Dodge RAM
• Marissa McCoy (class president) | Heidebreicht Chevrolet
• Jenna Mosser | Champion Hargreaves Chevrolet Co

Attending NADA Academy shows commitment to professional growth and a desire to stay ahead of the curve in this ever-changing industry. Dealers who encourage employees to further their education are helping to create a valuable leadership team.

Advanced dealership mobility solutions and technology from Enterprise help your business focus on reducing customer wait times, controlling costs, maintaining vehicle inventory and more.

For more than 60 years, Fenner, Melstrom & Dooling, PLC has provided strategic business consulting, tax, and audit services to privately-held companies and business owners seeking to maximize profits and minimize tax liabilities. Fenner, Melstrom & Dooling, PLC takes pride in providing proactive services to its clients which include personal attention and involvement with our engagement team resulting in consistent, quality service.