4th Quarter 2018, Volume 63, Issue 4orange countyTHE OFFICIAL PUBLICATION OF THE ORANGE COUNTY AUTOMOBILE DEALERS ASSOCIATIONwww.ocada.orgPAGE 24Election ResultsPAGE 14Top Five Consumer Complaints Against DealersYour 2018 Auto ShowHighlightsPAGE 8Serving the Dealer Industry for Over 35 YearsAttorneys at Ferruzzo & Ferruzzo, LLP have represented new vehicle dealerships, collectively for over 160 years - auto dealership related! Buy-Sell Agreements: Tom Ferruzzo - 35 years, Jim Barone - 31 years, Litigation: Jim Ferruzzo - 35 years, Greg Ferruzzo - 23 years, Succession Planning: Jim Leese - 22 years auto, 37 years total, Real Estate Transactions: Gordon Scholte - 16 years auto, 35 years total.Transactions for DealershipsA Limited Liability Partnership, including Professional Corporations 949.608.6900 | ferruzzo.com FERRUZZO & FERRUZZOLLP ATTORNEYS AT LAW | Our Practice Is Rooted In Strong Relationships Negotiating and Drafting Buy-Sell Agreements Estate Planning for Dealers Negotiation of Computer Software, & Hardware agreements Negotiating Capital Loan and Lender Agreements Real Estate Acquisitions and Financing Relocations Negotiation of Executive Compensation Negotiating Government Loans and Incentive Agreements Agreements and Buy-Ins Dealings with ManufacturersLitigation Support Protests before the New Motor Vehicle Board Litigation in all State and Federal Courts Customer Dispute Resolution including lemon law claims Represented Dealerships in seven of the Arbitrations in Hearings Before DMV, AQMD, RWQC, OSHA, California regarding the GM BankruptcyBUSINESS LAW | LITIGATION | ESTATE PLANNING | REAL ESTATE | TAX | EMPLOYMENT PRACTICESOC DEALER is a Publication of the Orange County Automobile Dealers Association3737 Birch Street, Suite 220 • Newport Beach, CA 92660www.ocada.orgPhone: 949-428-5050CONTENTSorange county6 President’s Message8 2018 Auto Show Highlights10 Dealers Capitalize on Auto Show Free Ticket Program11 Students Raised over $500,000 Selling OC Auto Show Tickets12 Get To Know Your Legislator: Senator Ling Ling Chang14 Top 5 Consumer Complaints Against Dealers16 Ask Alison: Dealership Benchmarking18 Annual Meeting at the Auto Show23 2018 OCADA-PAC Honor Roll24 OCADA Supported These Dealer Friendly Candidates27 When It Comes to Compliance, It’s Often The Small Things28 Meet Your NADA Leadership Team: Jonathan Collegio31 Welcome To Our New Associate MembersCALENDAROF EVENTSorange countyBOARD OF DIRECTORS PRESIDENT Ben BonfoeyThe CAR GroupVICE PRESIDENTDavid SimpsonSimpson Buick GMCSimpson Cadillac of Buena ParkSimpson Chevrolet of Garden GroveSimpson Chevrolet of Irvine TREASURERScott WadeDavid Wilson’s Villa FordAUTO SHOW CHAIRMANK.C. HeidlerTom’s Truck CenterDIRECTORSMiles BrandonCapistrano VolkswagenCapistrano MazdaJared HardinHardin Buick GMCBrad MuggNorm Reeves Honda Superstore IrvineJohn OhLexus of WestminsterEXECUTIVEDIRECTOR/SECRETARYJohn SackrisonINTERESTING OC AUTO FACT4NADA Show 2019 January 24 – 27, 2019 San Francisco OCADA Super Session with Jeff Cowan 6 Steps to Increase Service Sales, Survey Scores & Customer Retention 2 Sessions on February 20 & 21, 2019 National University, Costa Mesa CNCDA Dealer Day March 27, 2019 Sacramento©2018 Orange County Automobile Dealers Association. All rights reserved. OC Dealer is published four times each year by OCADA and is the official publication for the association. The information contained in this publication is intended to provide general information for review and consideration. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your specific circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the OCADA, its board of directors, or employees. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. OC Dealer is a collective work and as such, some articles are submitted by authors that are independent of OCADA. While OC Dealer encourages a first print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission from OCADA. For further information, please contact OCADA.81% OF AUTO SHOW ATTENDEES PLAN TO PURCHASE IN THE NEXT 12 MONTHS!CPA’S6President’sMessageBen BonfoeyThe CAR Group“We have a great story to share as we provide over 12,000 jobs with a payroll of over 700 million dollars and generate almost a billion dollars in tax revenue annually.”N ovember’s elections showed how much Orange County’s political landscape is changing. Democrats now hold every congressional seat representing Orange County and they also gained a seat in both the State Senate and State Assembly. We saw similar, but not as dramatic shifts on county and city levels. Much has been written about why this has happened, so I won’t delve into that topic. What I think is important to discuss is how we as an industry best adapt to this changing landscape.First, this is not entirely new and the OCADA has long been a bipartisan group. We have been effective in developing relationships on both sides of the aisle and have found many Democrats to be supportive of our industry and dealer issues. With Democrats holding super majorities in the State Senate and Assembly we must continue to cultivate these relationships and recognize that democratic law makers will likely be more impactful in the legislative process. It will be important to reframe our dialog to be more reflective of our audience and their priorities when presenting our industry’s legislative issues to lawmakers. We have a great story to share as we provide over 12,000 jobs with a payroll of over 700 million dollars and generate almost a billion dollars in tax revenue annually. We will need to place a more significant emphasis on the impact of bills on our employees, customers and communities as we meet with these new legislators and consider including them in our lobbying efforts. While the recent shifts in Orange County’s political landscape are significant, one thing remains very true and powerful – “all politics are local”. Democrats from Orange County will likely be very different than those in San Francisco and Los Angeles. Our opportunity to build relationships with our legislators and influence them remains the same, but we will need to change our message and tactics. I am confident that OCADA and our members will adapt to this new landscape – after all, grassroots lobbying is just another type of sale and who can sell better than a car dealer?Are you still losing thousands in profit due to refunds and write-offs?“EasyFEE has played an instrumental partLQVLJQLILFDQWO\UHGXFLQJRXU'09ZULWHRIIV7KHIHDWXUHLVHDV\WRXVHZKHQZRUNLQJDGHDODQGKHOSVRXU)LQDQFH'HSDUWPHQWGHWHUPLQHDFFXUDWH'09IHHV7KDQN\RX$956IRUSURYLGLQJDWRROWKDWKHOSVXVNHHS'09ZULWHRIIVWRDPLQLPXP´Daniel Garcia Finance DirectorWIN ChevroletLearn more about EasyFEE atAVRS.com/EasyFEEHIGHLIGHTS FROM18-3441%35-5439%55+20%Ages 18-3439%Ages 55+20%Ages 18-3441%OCTOBER 4-7, 201881%OC Auto Show guests are in the market for a new vehicle in the next 12 monthsLess Than 3 Months26%4-6Months34%7-12Months21%New Vehicle Purchase Intention$100K+OC Auto Show guests are much more affluent than the local market – 52% have an income of 8Added one or more brands to their consideration list showing they are active customers. 57%The average time spent at this year’sOC Auto Show.4 1/2 Hours9SoCal Truck Show continues to grow. 40% increase in attendance this year!40%OC AUTO SHOW ATTENDEES THIS YEAR WERE SHOPPING!Next >