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October 22, 2010 This week, I met with officials from the Motor Vehicle Commission (MVC) to review a report on how the changes made to the inspection program are affecting the market – and it wasn’t pretty. As you know, in passing this year’s budget in June, Governor Christie ended motor vehicle safety inspections and transitioned to a new program in which only emissions testing will be conducted. Included in the plan was moving the new car dealer exemption from a four year to a five year cycle. In doing this, the State of New Jersey saved $12 million a year, even though NJGCA offered up a proposal which would have saved $13 million a year and still have saved safety inspections. Fast forward four months and my meeting with MVC illustrated some grim findings: The number of inspections done at Private Inspection Facilities (PIFs) has fallen dramatically. What is the reason for this? There are a few explanations. As we predicted months ago, the elimination of safety inspections has allowed the Central Inspection Facilities (CIFs) run by Parsons to increase the number of inspections done on a daily basis. That means that whereas before the average inspection took 17 minutes from start to finish, the new emissions only inspection process takes considerably less time – which indirectly costs the state more money by increasing the volume of vehicles inspected. Additionally, thanks to the new car dealer extension, many cars that would have been up this year for inspection are now able to hold off an additional year and get their car inspected next year. This is obviously bad for business, especially since YOU just shelled out considerable dollars to obtain new inspection equipment. Believe me, I share your frustration. However, as much as it boils my blood, I believe this phenomenon will be short lived. First because the new car extension moves from four years to five years, we’ll be back on a normal inspection cycle next year. And secondly (and most importantly) we know that the Administration and MVC Director Ray Martinez are looking at privatizing the entire system and closing all CIF locations – which will drive all CIF traffic to your shop.
That means that PIFs like you and other NJGCA members may take it on the chin today, but may ultimately reap a larger reward in the year ahead. However, it isn’t just plain ol’Below Cost Selling that worries me – though that would certainly be enough. Rather, there are other bills being deliberated in Trenton that will also allow Below Cost Selling in conjunction with product offers. For example, the Legislature is seriously considering a bill which would permit supermarkets and other food stores to ‘cross-market’ their products with gasoline sales. That means that they could run an advertised special that allows for them to offer coupons or other incentives on discounted gasoline when running an in-store promotion. So imagine something like, “This week, GET A $10 GASOLINE GIFT CARD with every $50 in groceries you buy!” What could that do your small business? We know there is more profit in a gallon of milk or a jar of jam than in gallon of gasoline. So how would you anticipate it will affect your bottom line when they can absorb the loss at the pump, but still eek out a healthy profit selling cookies and soda? Even while we continue to keep our eyes peeled on the progress of these bills, we continue to negotiate with bill sponsors and our supporters to amend this legislation. Similarly, there are bills being discussed out there which limit how much you can charge at the pump. As we’ve recently reported, Assemblyman Mainor has introduced bill A-3191, which will prohibit you from charging more than a 5¢ difference between your cash and credit prices at the pump. However, the Assembly has also just introduced A-3427, which prohibits you from charging a customer more for a debit card purchase than for cash purchase. The companion bills to A-3191 and A-3427 have already been introduced in the Senate. In other words, bills like this will make it near-impossible for you to make any profit if someone uses any kind of credit/debit transaction. Are you freaking out yet?! We are continuing our meetings will all stakeholders to negotiate an amendment to these bills. However, there is no progress to report. So why rehash all of this if we are still holding meetings and working on solutions? It’s very simple: Though we are very skilled at making our cases with Legislators and regulators, it is ultimately YOUR PARTICIPATION that will turn our efforts into success. Why? Because to them we are advocates working on your behalf; but when they see you there alongside of us, they can put a face and name to the policies they are about to implement. That’s a powerful tool and one I cannot wield without YOUR PARTICIPATION. Last Friday we sent out the latest installment of our On The Road quarterly communication. This is the yearly VOTER GUIDE SPECIAL EDITION, so please be sure to go through the guide carefully and consider all the issues important to you as a small business owner before you vote. If you haven’t received your copy yet, click HERE to review and online version of it. Lastly, we received a phone call this week from a member who is looking to move his shop. Please be sure to check out the NJGCA Want Ad Classifieds below for more details and information. Thanks for reading and see you next week!
Regards,
Contact us and use our easy contact form to request the complete
1-800-440- 8265
NJGCA WANT AD CLASSIFIEDS If you have at least 2 bays available, please contact Jerry at 973-252-5151 or email him at Sweetmotors@optonline.net
NEW TRAINING CLASSES ADDED!!
CALL FOR FUTURE CLASS SCHEDULE INFORMATION Special ASE Level 1 Preparation Course for the November 2010 Testing: Class Instruction will be given as follows: Seven (7) hours of instruction on: Understanding the ASE composite Vehicle, General Power Train Diagnosis, Computerized Power Train Controls Diagnosis – Including: OBDII, Ignition System Diagnosis, Fuel Systems and Air Induction Systems Diagnosis, Emission Control Systems Diagnosis, and Inspection Maintenance Failure Diagnosis. NJGCA will provide a Course Manual – Power Point Presentation – Sample Testing.
Class Date: Monday – October 25th and Wednesday – October 27th TAKE ADVANTAGE OF OUR TRAINING CLASSES!
**To Register call Debbie Hill 973-376-0066 x 203 or debbie@njgca.org**
POLITICAL PARTICIPATON: THE NJGCA PAC
Ensuring our friends in the legislature are re-elected and advocating for our agenda in Trenton are of utmost importance to the agenda of NJGCA. It is for this reason that your Association has established the NJGCA PAC. For too long, the weight of funding our Political Action Committee, the arm of the Association responsible for political donations, has rested upon the shoulders of a few. This is not fair to them, and it is not fair to many of you who are relying on the benefits of good legislation being passed in Trenton. To truly understand the importance of fundraising for our allies, let’s look back upon the overwhelming successes of the last year: NJGCA successfully lobbied against BELOW COST SELLING. If approved, BELOW COST SELLING would have cost each of you thousands of dollars and put many of you out of businesses. NJGCA leaned on some of our friends in the Assembly and literally had the bill pulled off the floor on the day it was scheduled to be voted on. Our friends in the Legislature helped us get this accomplished. NJGCA made history and led the charge to pass the most comprehensive protection of franchisees in decades with FIRST RIGHT OF REFUSAL legislation. FIRST RIGHT OF REFUSAL passed only because NJGCA and dealers throughout the state were able to lean on several friends in the Assembly and the Senate. NJGCA has been rallying support for RIGHT TO REPAIR over the last two years among key legislators. This would end the practice of car manufacturers denying you the codes necessary to complete the repairs you make on your customers cars. Every state has tried to pass RIGHT TO REPAIR and no state has even been able to get the legislation out of committee. Because of our friends in the Legislature, NJGCA has been successful in getting this bill passed by the Assembly and now awaits a vote in the Senate. I am asking some of you as individuals to make a contribution and attend a fundraising event sponsored by one of our friends in the Assembly. However, we will not be able to host events for all of our friends, so the NJGCA PAC will have to make contributions. You will be receiving letters soon from the NJGCA PAC asking you to make contributions. If every member contributes just $100.00 we will be able to provide the help necessary to ensure victory for our allies.
PLEASE SEND YOUR CONTRIBUTIONS TO: I understand that times are tough for all NJGCA members, but this is just as important as any battle we have fought in the past. We have made great progress in Trenton. I hope that you will answer the call.
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