Members News

Bass Sox Mercer Q2 2021

BSM Q2 2021

BSM Q2 2021 375 250 CCDevTeam

The BSM Report

Quarter 2 - 2021| Newsletter Vol. 52

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BSM NEWS BRIEFS

Hyundai Dealers Push-Back on IONIQ Participation Agreement
BSM has been contacted by a number of Hyundai dealers across the country who are questioning the appropriateness of the IONIQ EV Participation Agreement.
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Vehicle Allocation Continues to Rile Dealers
The lack of sufficient production of new vehicles has continued to plague dealers across the country.
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COMPLIANCE NEWS

Know your FLSA Overtime Exemptions
As you are undoubtedly aware, automotive dealers have many employees that qualify for exemptions from overtime compensation otherwise required by federal law, specifically the Fair Labor Standards Act or FLSA.
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Remember to Regularly Review Dealer Jacket Materials
Dealers across the country are familiar with the many State and Federal laws regulating the documents and forms used in a dealer’s standard “deal jacket.”
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OPERATIONS NEWS

Dealers Should Be Wary of Aggressive Claims Relating to Employee Retention Tax Credits
Every prudent business entity has been meticulously following and researching the various government programs providing benefits as a result of this pandemic.
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Q1 2021

BSM Q1 2021

BSM Q1 2021 375 250 CCDevTeam

The BSM Report

Quarter 1 - 2021| Newsletter Vol. 51

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BSM NEWS BRIEFS

Active Legislative Year for Dealer Associations
BSM is assisting dealer associations representing nine (9) states with franchise law issues during their 2021 Legislative sessions.
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Volvo Announces Intent to Sell Direct to Customers
Under the guise of providing convenience to customers, Volvo has recently announced that it intends to offer retail customers the option of purchasing vehicles directly from Volvo at a non-negotiable, fixed price.
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FRANCHISE NEWS

Buyers Unaware – Pitfalls of Sales to Elderly Customers
As the US population ages and modern medicine continues to increase life expectancies (save for a slight downturn this year due to a once in a millennia pandemic), dealers can expect to encounter older car-buyers more frequently.
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Allocation – Good Habits for Voicing Your Allocation Concerns to the OEM
Nearly all dealers can relate to the frustration of going through extended periods receiving an insufficient allocation of new motor vehicles by their OEM.
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OPERATIONS NEWS

Advertising Can Skew Expectations
Telling you that advertising drives sales is stating the obvious. But, why then is the comparative advertising of the various line-makes not taken into consideration as the factories evaluate the expected sales of car dealers?
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COMPLIANCE NEWS

Final Rule: Independent Contract Status under the Fair labor Standards Act
On January 6, 2021, the Department of Labor (“Department”) announced a final rule revising and clarifying the standard for employee versus independent contractor under the Fair Labor Standards Act (“FLSA”). The effective date of the final rule is March 8, 2021.
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RMG - U.S. Treasury Update

U.S Treasury Revenue Procedure 2020-45

U.S Treasury Revenue Procedure 2020-45 375 250 CCDevTeam

U.S Treasury Revenue Procedure 2020-45

The IRS released Rev. Proc. 2020-45 providing the annual inflation for 2021.

The adjusted annual premium limit for small insurance companies making an 831(b) election for 2021 is $2.4M. This is an increase of $100k and is applicable to returns filed in 2022. the language included in the revised Revenue Procedure:

Tax on Insurance Companies Other than Life Insurance Companies. For taxable years beginning in 2021, under § 831(b)(2)(A)(i) the amount of the limit on net written premiums or direct written premiums (whichever is greater) is $2,400,000 to elect the alternative tax for certain small companies under § 831(b)(1) to be taxed only on taxable investment income.

Greg Hoffman
Managing Partner | Portfolio Reinsurance
CEO | RMG & Global Administrators
ghoffman@corprmg.com
508.944.6800

Global Administrators
RMG Driving Dealer Profitability
Portfolio
BSM Q4 2020

BSM Q4 2020

BSM Q4 2020 375 250 CCDevTeam

The BSM Report

Quarter 4 - 2020 | Newsletter Vol. 50

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BSM NEWS BRIEFS

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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COMPLIANCE NEWS

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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FRANCHISE NEWS

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 Q3 2020

BSM Q3 2020 375 250 CCDevTeam

The BSM Report

Quarter 3 - 2020 | Newsletter Vol. 49

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BSM NEWS BRIEFS

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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COMPLIANCE NEWS

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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FRANCHISE NEWS

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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TRANSACTION NEWS

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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NADA 7-2

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First Quarter 2020

First Quarter 2020 375 250 clevercow

NADA June 16

NADA June 16 375 250 clevercow

Auto News March 25

Auto News March 25 375 250 clevercow
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