February 2021

Looking Back at 2020 and Expectations for 2021
As we begin the New Year, the team at BSM looks back at 2020 and forward to 2021 for what we might expect as dealer advocates this year.
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Transaction Activity Rebounded
2019 was an impressive year for the buy-sell market, and the start of 2020 appeared to continue the trend. January and February, which are normally slow months, saw unusually high buy-sell activity.
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Employee Handbook… Not Just an After Thought
When was the last time your dealership looked at its employee handbook? And, no, we are not talking about when your sales manager last printed it to provide to a new salesperson.
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Avoid DHSMV Administrative Complaints for Dealer Titling Violations
In early 2020, the Florida Department of Highway Safety and Motor Vehicles (“DHSMV”) served Administrative Complaints against multiple motor vehicle dealerships related to alleged untimely submission of titling paperwork resulting from a motor vehicle transaction.
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Incentive and Warranty Audits – Know Your Rights
Manufacturer letters providing notice that a dealership has been selected as an eligible candidate for an incentive or warranty audit are critically important and should never be taken for granted.
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BSM Retained to Challenge the Lincoln Commitment Program on behalf of the New Jersey Coalition of Automobile Retailers
NJCAR has retained BSM to file a complaint in New Jersey federal court challenging the Lincoln Commitment Program as a violation of the New Jersey franchise protections.
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BSM Assists Dealers Compile Their PPP Loan Forgiveness Applications
BSM Shareholder, Richard Sox, and his team are actively assisting dealers ready their PPP Loan Forgiveness applications for submission to their lender.
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Several Dealer Associations Focused on OEM Distribution of Electric Vehicles
BSM has been asked by several Dealer Associations to examine whether the OEM plans for distribution of Electric Vehicles runs afoul of existing franchise protections.
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Waivers of Liability from COVID-19, Not All They are Cracked Up to Be
A waiver seems like a good idea to address potential liability for your dealership from COVID-19 related exposure, but it may create more problems than its ultimate value.
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Changing Part Numbers or Price Due to the Volume of Repairs or an Anticipated Recall
We have heard from numerous dealers that manufacturers have been reducing part prices related to specific repairs, or changing parts numbers.
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Hyundai Motor America’s New ROFR Addendum
HMA has recently started sending a Right of First Refusal Addendum (the “Addendum”) to Hyundai dealers for signature. Many dealers have been questioning whether the language included in the Addendum is standard for rights of first refusal (“ROFR”) in a Dealer Sales and Service Agreement (“DSSA”).
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Dealer Agreement Renewals and Modifications: Dot Your “I’s” and Cross Your “T’s”
When changes are made to your Dealer Agreement, which many times occurs upon renewal, they should be carefully scrutinized to ensure that they are not harmful to your dealership.
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Due Diligence Standard in Today’s Automotive Buy-Sell Market
Back in April and May of this year, the economy came to a grinding halt as many cities ordered businesses to close. Things looked pretty dismal, both for our dealer clients and Bass Sox Mercer. The phone stopped ringing and several buy-sells in our pipeline were terminated by buyers.
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