January 2015 SDADA Column

It goes without saying that the NADA Director's Column is intended to be about NADA issues. While I have discussed South Dakota issues in this space before, they have not usually been the primary focus. But he South Dakota Automobile Dealers Association has a very important bill in front of the legislature this year and I feel compelled to address it.

The bill will repeal the South Dakota damage disclosure. We have been down this road before but the hail storms last summer seem to have raised awareness of what a bad law that our current damage disclosure law is. In fact, several legislators have learned firsthand about "diminution of value".

The used car dealers, insurance companies, body shops and salvage dealers have also expressed support of this bill. Through the years, we have struggled to get all these parties on the same page. As the saying goes, "the stars have aligned".

Two years ago, I added a body shop in my Ford store. Since then, I've seen the lengths to which people will go to avoid having to disclose damage on their vehicle. They have learned how a damage disclosure can crush the value of a late model vehicle. If you give people a reason to lie, cheat or steal, don't be surprised when they do so. Our current damage disclosure law causes people to do just that.

I have never talked to a member of SDADA that thinks the damage disclosure law is a good one. We have discussed raising the damage limit or excluding certain equipment. That is simply spraying perfume on the pig.

This is our best opportunity to kill this law. We need your help. Please talk to your legislators about this bill. Make certain that they understand it and why we want to do it. Point out to them that all of this information is now public (Carfax, Auto Check, etc.) and that many of us are providing this information to your customers at no cost before they buy your vehicle.

Get involved. Make a phone call. Let's put a stake in the heart of the damage disclosure law once and for all!

Dealers Much More than "Middleman" for Consumers

Tesla's sales model had stirred much discussion about the role of the traditional automobile dealer. We have been cast as everything from oligopolists, who just want to preserve an antiquated system, to middlemen, who add no value to the process.

NADA's arsenal of resources intended to get the dealers' story out continues to grow. The videos and other materials found here make a great short presentation for your Kiwanis or Rotary meeting. Please consider spreading the word.

NADA’s “Get the Facts” initiative is designed to inform policymakers, opinion leaders and the media about the numerous benefits of the dealer franchise network through a variety of multimedia resources and videos available at nada.org/getthefacts.

The current franchised new-car dealer model has benefited consumers, manufacturers and local communities for nearly a century. It is supported by both dealers and factories as the best and most efficient way to buy, sell, service and finance cars in the marketplace. NADA’s Get the Facts page sets the record straight about the benefits of the franchise system for consumers and local communities all over America.

This campaign emphasizes that local franchised auto dealers: fiercely compete for business and drive consumer prices down; take the side of consumers in warranty and safety recalls; create good-paying local jobs and significant tax revenue for local communities; and simplify an otherwise complex car-buying experience.

Dealers and local dealer associations are encouraged to link to the videos on their websites, and with permission can co-brand the videos with their own logos. For more information about co-branding content from NADA’s “Get the Facts” initiative, contact publicaffairs@nada.org.