MADA and WANADA brief Md. dealers on state laws and upcoming elections
Maryland dealers received an extensive briefing on matters crucial to their business success this week as MADA and WANADA staged a joint briefing at the Greenbelt Marriott on Thursday, Sept. 16, 2010. The first segment of the morning long event consisted of a presentation by the Motor Vehicle Administration (MVA) on the new temporary tag requirements that go into effect the 1st of October.
The changed procedures come as a welcome relief to dealers who will now be able to print the tags on an as needed basis and have considerable flexibility in making changes to them when required, as the entire temporary tag procedures and database will now reside online and at the MVA. MVA representatives Brenda Scheydt and Rhonda Witt, who detailed the new procedures at the briefing, noted dealers can return existing inventories of cardboard tags for refunds, by September 30, 2010 when they must also make the switch to the new paper tags.
This switch over is a win for everyone, MVAs Brenda Scheydt said. Not only does the new system allow you to print only what you need, but it also reduces record keeping requirements to just three years, gives the state immediate tag and vehicle information and should reduce curb stoning, she said. It will also automatically flag any circumstance that would prevent issuance of a registration, she said.
And because the new MVA system eliminates uncertainty from the registration and tag issuance procedures, there may be a reduction in property and casualty insurance premiums as well, said John ODonnell, head of WANADAs employee benefits and insurance programs.
To use the new temporary tag processes, dealers must register with either Computerized Vehicle Registration (CVR) www.cvrweb.com or triVIN www.trivin.com. Dealers can also register at the MADA sites www.mdtemptags.com or www.marylandtemptags.com beginning later this month.
Excise tax credits for electric vehicles
Dealers were reminded by MVA that excise tax credits of up to $2,000 on the purchase of a plug-in electric vehicle will be available effective October 1, 2010. At present, that likely will apply only to the all-electric Nissan Leaf and extended range Chevrolet Volt, both of which will go on sale later this year. The credit is limited to one per individual and ten for a business entity and can also be applied to a used plug in electric that was initially titled in Maryland.
Along with the excise tax credit, plug-in electric vehicle buyers will also be provided a free HOV permit, which MADA will issue to qualified dealers and which the MVA is asking be affixed to the rear of the vehicle in a visible position within 12 inches of the registration plate.
Vehicle prior use disclosure
In response to some recent class action suit activity related to vehicle prior use disclosure requirements under Maryland law, dealers were urged by MADA CEO Peter Kitzmiller and WANADA CEO Gerard Murphy to carefully review the procedures they have in place to ensure that this mandated disclosure occurs as it required. Vehicle prior use disclosure has been a Maryland law for more than 20 years and provides that any known prior commercial use must be disclosed in a clear and conspicuous manner to the buyer. That doesnt mean it must always appear on the buyers order, but it does mean that it must be delivered in a printed format and done in the same way every time. said Kitzmiller. He said prior commercial use refers to vehicles used as taxis, police cars, and short term rentals, and suggests it might be a good idea to also inform buyers if the vehicle was used as a loaner vehicle.
Balance advertising
Noting that there is likely to be more enforcement activity related to this prohibited type of advertising, dealers were cautioned that they may not make the balance amount of a vehicles price the largest number in an ad, no matter whether it appears in print or electronically. This is expressly prohibited by Maryland consumer protection law and all were urged to review their ads to ensure compliance.
Midterm elections
Mike Johansen of Rifkin, Livingston, Levitan & Silver, who represents WANADA and MADA on legislative and regulatory matters, gave attendees a rundown on last weeks primary election races noting that while the Democrats continue to prevail in the region, there will be some turnover in the Maryland General Assembly. He said the state will need to find additional revenues to offset large budget deficits commencing next year. Among the proposals rumored to be under consideration is a tax on services, which would significantly impact dealership fixed operations. This is why it is important for dealers to remain politically involved, Johansen said, emphasizing the imperative of successful political action efforts by dealers
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