14feb

NewsDecember 2016

inside Buyers Guide Modifications

2017 Wage Base & Tax Rates

Courts Block Overtime Change

Scott Lambert, President • 200 Lothenbach Ave. • West St. Paul, MN 55118 • (651) 291-2400 • 1-800-652-9029 • FAX (651) 291-2894

visit www.mada.org

for details, registration and a complete list of Upcoming Events and

Training

Political News

MADA Flexes Political MuscleDriving Minnesota Effort Leads to Defeat of Long-Time Incumbent

Certified TitleWest St. Paul

Title BasicsWest St. Paul

upcoming events

10jan

Instead of sitting idly by and letting a long-time legislative foe of Minnesota dealers get a pass during the 2016 elections, MADA went on the offensive and actively worked to unseat 22-year State Representative Ron Erhardt (DFL-Edina.) Driving Minnesota, MADA’s independent expenditure campaign fund, spent $100,000 on mail, phone calls and digital ads to let voters in the district know of Rep. Erhardt’s record of wasteful spending, unwavering support of MNSure, and bizarre antics on the House floor that his colleagues called “grossly misleading” and “disreputable.” Our efforts paid off, with Erhardt losing to Republican businessman Dario Anselmo by 2.25% in a district that Hillary Clinton won by over 27%!

Through the years, Erhardt routinely dismissed legislative concerns of MADA members and worked actively to champion Sunday auto

sales, offering the amendment repeatedly during the 2015 session. MADA hopes that Rep. Erhardt’s loss serves as an example to other lawmakers that if they continually attack our industry, we will fight back.

Erhardt worked actively to champion Sunday auto sales...

December 2016 / Page 2

The Federal Trade Commission adopted a final rule effective January 27, 2017, which modifies the Buyers Guide warranty sticker which dealers have been completing and posting on their used vehicles since 1985. Though effective January 27, the new rule permits dealers a grace period of 12 months to use up their existing stock of forms.

The new Buyers Guide is similar in look and feel to the old form. Some of the more significant changes:

• an updated description of what “As Is” means;• an updated warranty section that permits - but does not require - dealers to disclose

whether a used vehicle is covered by a manufacturer’s warranty or a third-party warranty;• statements that encourage consumers to visit government web sites for information about

vehicle history reports and outstanding recalls;• a statement in Spanish letting customers know that they may obtain a Buyers Guide in

Spanish if the dealer is conducting the sale in Spanish;

MADA Services is in high gear printing various versions of the new Buyers Guide to accomodate “As Is” sales and vehicles covered by the Minnesota 30- and 60-day used vehicle warranty law. New forms will be on the shelf in early January.

Legal News

Federal Warranty Sticker Gets a Facelift

The Minnesota Automobile Dealers Association is a non-profit trade association dedicated to the progress of the retail auto

industry in Minnesota.Chair Rick Jensen, Jensen Motors, Inc., New Ulm Vice Chair Michael Stanzak, Key Cadillac, Inc., Edina Treasurer Peter Kolar, Kolar Toyota Scion, Duluth Secretary Steve Whitaker, Whitaker Buick GMC, Forest Lake President Scott Lambert, MADA

200 Lothenbach Avenue • West St. Paul, MN 55118Metro: 651-291-2400 • Toll Free: 800-652-9029

FAX: 651-291-2894 • Web site: http://www.mada.org

Most vehicles contain at least some components that are considered “hazardous waste” by the Minnesota Pollution Control Agency (MPCA). One such component is an undeployed airbag. When performing repair, warranty, or recall work, dealerships must treat undeployed airbags as hazardous waste and dispose of them accordingly. In the alternative, dealerships may deploy airbags themselves without a permit from the MPCA if they follow the manufacturer’s directions or industry standards. Deployed airbags may then be treated as scrap metal or solid waste. For more information on this topic, dealerships are encouraged to contact the MPCA at (651) 296-6300.

Legal News

Treat Undeployed Airbags as Hazardous Waste

December 2016 / Page 3

A new group of officers has taken the reins at MADA. Congrats and thank you to the following members for your service:

MADA’s renewed and reinvigorated annual luncheon kicked off this year as “The Main Event.” The redesigned luncheon has taken the place of the Annual Meeting and was held on December 2, at the JW Marriott Mall of America. Gone were the formalities and reports of the Association’s usual annual meeting. Those were replaced with fun as we celebrated Minnesota’s new car and truck industry.

MADA News

Main Event Recap

MADA News

New Officers

CHAIRRick Jensen

Jensen Motors, Inc.New Ulm

VICE CHAIRMichael Stanzak

Key CadillacEdina

TREASURERPeter Kolar

Kolar Toyota ScionDuluth

SECRETARYSteve Whitaker

Whitaker Buick GMCForest Lake

IMM. PAST CHAIRMichael Saxon

Inver Grove FordInver Grove Heights

December 2016 / Page 4

Time to take notice of the annual payroll adjustments that come with the new year.

The Social Security Administration announced the wage base for social security payroll taxes for calendar year 2017. The following table shows the rates and bases applicable for 2017 and 2016 respectively:

Medicare Tax for High Earners Continues in 2017 The 0.9% Medicare Tax which first went into effect in 2013 continues in 2017. Employers are required to withhold the tax on earnings over $200,000 during each calendar year. Even though an employer’s obligation to withhold begins at $200,000, employees may owe more or less tax depending on their filing status. There’s no employer match to this tax.

Minimum Wage Remains at $9.50Minnesota dealers are subject to both State and Federal minimum wage laws and are required to pay the minimum wage most favorable to their employees. Since August 2014, the Minnesota rate has been higher and currently stands at $9.50 per hour. For youths who are 17 years old and younger, the minimum wage is $7.75. The law provides a lower minimum wage for new employees under the age of 20 during the first 90 days of their employment. This temporary youth minimum wage rate is currently $7.75 per hour.

Vehicle Old-Age Exemptions Minnesota Used Car Warranty Law A variety of exclusions are provided in Minnesota’s Used Car Warranty Law, including one for “vehicles that are eight years of age or older as calculated from the first day in January of the designated model year of the vehicle.” On Jan. 1, 2017, model year 2009 vehicles turn eight years old and are exempt from the law.

Minnesota Used Car Damage Disclosure and Branding Laws These laws only apply to vehicles that have a “manufacturer’s designated model year equal to or greater than the fifth calendar year immediately preceding the current calendar year.” On January 1, 2017, model year 2012 and newer vehicles will be covered. 2011 and older will be exempt

Odometer Disclosure Requirements The Federal Odometer Regulations contain an exemption from the disclosure requirements for vehicles that are ten years old or older. The Minnesota Department of Public Safety administers the exemption on a calendar year basis. Effective January 1, 2017, model year 2007 vehicles turn ten years old and will be exempt.

Legal News

Social Security Wage Base and Tax Rates for 2017

Wage Base 2017 2016 Employee Tax Employer TaxOld Age, Survi-vors, Disability Tax

$127,200 $118,500 6.20% 6.20%

Medicare Part A All Wages No Limits

All Wages No Limits

1.45% 1.45%

December 2016 / Page 5

With the recounts tallied and dust settled on the 2016 elections in Minnesota, all four legislative caucuses have met to determine their leadership and committee structure for the upcoming session. Beyond choosing Senate Paul Gazelka (R-Nisswa) as Senate Majority Leader, Senate Republicans filled out their leadership team naming Senator Michelle Fischbach (R-Paynesville) as Senate President and Senators Michelle Benson (R-Ham Lake) and Jeremy Miller (R-Winona) as Deputy Majority Leaders. They have also designated committee chairs, picking Senator Gary Dahms (R-Redwood Falls) to lead the Commerce Committee; Senator Scott Newman (R-Litchfield) to head up Transportation Policy and Budget; and Senator Warren Limmer (R-Maple Grove) for Judiciary. Senator Dahms is no stranger to the industry, having owned a Redwood Falls Chrysler franchise in the late 1970s and early 1980s. Senate Democrats, who were surprised to have lost control of the chamber, stayed the course and kept Tom Bakk (DFL-Tower) as their leader.

On the House side, Republicans voted to continue the leadership of Kurt Daudt (R-Crown) as Speaker and Joyce Peppin (R-Maple Grove) as Majority Leader. Many of their committee chairs will also remain in place, including Representative Joe Hoppe (R-Chanhassen) as Commerce Chair and Representative Peggy Scott (R-Andover) in Civil Law. Taking the helm of the transportation committees for the first time will be Linda Runbeck (R-Circle Pines), overseeing Transportation and Regional Governance Policy, and Paul Torkelson (R-Hanska) at Transportation Finance. Neither Representative Paul Thissen (DFL-Minneapolis) nor Erin Murphy (DFL-St. Paul), former Democratic leaders, chose to run for Minority Leader. The caucus instead chose Melissa Hortman (DFL-Brooklyn Park) to head the caucus.

If you have relationships with any of these members, please let MADA Director of Government Affairs Amber Backhaus know. They will be key as we work to advance our franchise changes during the upcoming session.

Legislative News

Legislative Leadership and Chairs in Place

A federal judge has blocked a Department of Labor rule from taking effect that would have extended mandatory overtime pay to more than 4 million “white collar” salaried workers. The judge agreed with 21 states and a coalition of business groups, including the U.S. Chamber of Commerce and NADA, that the rule is potentially unlawful and granted their motion for a nationwide preliminary injunction. The rule was to take effect December 1, and would have doubled to $47,476 the maximum salary a worker can earn and still be eligible for mandatory overtime pay.

Until further notice, the existing “white collar”

salary threshold remains in effect ($455/week, $23,660/year) and dealers should not make employee compensation adjustments based on the revised “white collar” rule’s higher compensation threshold.

NOTE: This is a temporary injunction, meaning the case is still ongoing, and the higher threshold could still take effect at a later date. MADA is monitoring the case and will update dealers if anything changes.

Contact MADA Legal Counsel Jim Schutjer or Dan Louismet with any questions.

Legal News

Changes to White Collar Overtime Requirement on Hold

December 2016 / Page 6

Five years ago, most dealers were paying about $5,000 per month for their internet search budget (e.g. Google Adwords). Today, those numbers are as high as $20,000 per month per rooftop for an average size store in Minnesota. Attributing the value of SEARCH to the expense is an interesting proposition. What’s your actual expense to get a user to a specific vehicle detail page (VDP) versus the common destination of your home page in search engine marketing (SEM)? How about on third party sites?

Recently, numerous vendors with self-driven interests in the automotive ad space are touting the need for dealers to focus on SEM to drive their own web traffic, citing that the highest closing ratio for leads is on a dealer’s site (this should be true because of where it fits in the funnel). However, using referral links through the right third party site presence, including new, well-written, relevant, frequently updated content on your own site can help a dealership drive value and benefit from search engine optimization (SEO) as well as improve its quality score on Google, thus reducing the cost per visit via SEM that in many cases has increased by over twenty percent year over year. For more details on how to effectively meet today’s advertising challenges in SEARCH via SEO and support cost reduction in this ever-evolving space, email Su-Lin@carsoup.com.

Article contributed by Su-Lin K. Velin

MADA Vendor Viewpoint

Maximizing Your Web Reach

MADA Services, Inc. welcomed two new members to its Board of Directors. Michael Stanzak of Key Cadillac joined the board as he also became Vice Chair for MADA. In addition, Don Hilligoss of Ranger Chevrolet Buick GMC took the position previously filled by Mike Dockendorf. Sadly, Mike passed away last month after complications from his open heart surgery.

MADA Services, Inc. is a wholly owned subsidiary of MADA.

Services News

New Board Members For MADA Services, Inc.

Don HilligossRanger Chevrolet

Buick GmcHibbing

Reception at the NADA Convention

Friday, January 27, 20176 p.m. - 8 p.m.

atThe National WWII Museum

1035 Magazine StreetNew Orleans, LA 70130

Enjoy drinks, appetizers and a walk through the museum that will be open to us privately from 7:30 pm – 8:30 pm.

PLEASE BE OUR GUEST

December 2016 / Page 7

Minnesota New Retail Car and Light Truck RegistrationsMost Recent Two Months YTD thru October* YTD Market Share

9/15 & 10/15 9/16 & 10/16* % change 2015 2016 % change 2015 2016 changeIndustry Total 37,633 37,098 -1.4% 175,487 171,202 -2.4%

Cars 11,997 10,663 -11.1% 60,107 52,583 -12.5% 34.3 30.7 -3.6Light Trucks 25,636 26,435 3.1% 115,380 118,619 2.8% 65.7 69.3 3.6

Japanese Brands 12,763 12,967 1.6% 60,260 59,692 -0.9% 34.3 34.9 0.6Honda 3,528 3,436 -2.6% 15,843 15,672 -1.1% 9.0 9.2 0.2Nissan 1,976 2,006 1.5% 9,448 8,403 -11.1% 5.4 4.9 -0.5Toyota 4,316 4,298 -0.4% 21,197 21,280 0.4% 12.1 12.4 0.3Other 2,943 3,227 9.7% 13,772 14,337 4.1% 7.8 8.4 0.6

Domestic Brands 20,229 19,599 -3.1% 94,010 91,320 -2.9% 53.6 53.3 -0.3FCA (excl. FIAT) 4,959 4,975 0.3% 22,558 22,578 0.1% 12.9 13.2 0.3Ford 6,883 6,434 -6.5% 31,783 29,340 -7.7% 18.1 17.1 -1.0General Motors 8,353 8,148 -2.5% 39,466 39,131 -0.8% 22.5 22.9 0.4Other 34 42 23.5% 203 271 33.5% 0.1 0.2 0.1

European Brands 2,360 2,206 -6.5% 10,366 10,277 -0.9% 5.9 6.0 0.1BMW 483 459 -5.0% 2,385 2,519 5.6% 1.4 1.5 0.1Mercedes 390 349 -10.5% 1,668 1,658 -0.6% 1.0 1.0 0.0Volkswagen 1,152 1,065 -7.6% 4,975 4,572 -8.1% 2.8 2.7 -0.1Other 335 333 -0.6% 1,338 1,528 14.2% 0.8 0.9 0.1

Korean Brands 2,281 2,326 2.0% 10,851 9,913 -8.6% 6.2 5.8 -0.4

3.0%

-2.4%

-7.6%

-10.1%

-6.5%

-11.7%

-4.5%-6.7%

-3.8%

1.5%

6.0% 6.7%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16*

% c

hang

e vs

. yea

r ear

lier

Last month in period

5.3%

2.8%

-9.0%

-12.5%

-30.0% -10.0% 10.0% 30.0%

U.S.

Area

Cars

Trucks

Minnesota Auto OutlookCovering the Minnesota automotive market Data thru October 2016

Released by:Minnesota AutomobileDealers Association

Data InformationAll data represents new vehicle retail registrations in Minnesota and excludes fleet and wholesale transactions. Please keep in mind that monthly registration figures can occasionally be subject to fluctuations, resulting in over or under estimation of actual results. This usually occurs due to processing delays by governmental agencies. For this reason, the year-to-date figures will typically be more reflective of market results. Data Source: IHS Markit.

Percent Change in Three Month Moving Average of New Retail Registrations versus Same Period Year Earlier

The graph above provides a clear picture of the trending direction of the state market. It shows the year-over-year percent change in the three month moving average of new retail light vehicle registrations. The three month moving average is less erratic than monthly registrations, which can fluctuate due to such factors as the timing of manufacturer incentive programs, weather and title processing delays by governmental agencies.*Figures for October 2016 were estimated by Auto Outlook. Data Source: IHS Markit.

Percent Change in State and U.S. New Retail Light Vehicle MarketsYTD ‘16 thru October* vs. YTD 15

Brands included above: Domestic Brands: GM (Buick, Cadillac, Chevrolet, and GMC), Ford (Ford and Lincoln), Chrysler (Chrysler, Dodge, Jeep, and Ram). Japanese: Toyota (Toyota, Lexus, and Scion), Honda (Honda and Acura), Nissan (Nissan and Infiniti), Other (Mazda, Mitsubishi, and Subaru). European: VW (Audi, Bentley, Porsche, and Volkswagen), BMW (BMW, Rolls Royce, and MINI), MB (Mercedes Benz and smart), Other (Alfa Romeo, Aston Martin, Ferrari, Fiat, Jaguar, Land Rover, Lotus, Maserati, and Volvo). Korean: Hyundai and Kia.*Figures for October 2016 were estimated by Auto Outlook. Data Source: IHS Markit.

The graph above compares the change in new retail car and light truck registrations in both the state and U.S. markets. *Figures for October 2016 were estimated by Auto Outlook.Data Source: IHS Markit.

December 2016 / Page 8

MinnesotaNew Retail Light Vehicle Registrations

Registrations Market share

YTD '15

thru Oct.

YTD '16

thru Oct.* % change

YTD '15

thru Oct.

YTD '16

thru Oct.*

TOTAL 175,487 171,202 -2%

Acura 1,203 1,003 -17% 0.7% 0.6%

Audi 1,340 1,430 7% 0.8% 0.8%

BMW 1,989 2,119 7% 1.1% 1.2%

Buick 3,275 3,249 -1% 1.9% 1.9%

Cadillac 1,058 962 -9% 0.6% 0.6%

Chevrolet 28,041 27,812 -1% 16.0% 16.2%

Chrysler 3,301 2,874 -13% 1.9% 1.7%

Dodge 4,675 4,305 -8% 2.7% 2.5%

FIAT 191 164 -14% 0.1% 0.1%

Ford 30,869 28,396 -8% 17.6% 16.6%

GMC 7,092 7,108 0% 4.0% 4.2%

Honda 14,640 14,669 0% 8.3% 8.6%

Hyundai 5,031 4,105 -18% 2.9% 2.4%

Infiniti 644 541 -16% 0.4% 0.3%

Jaguar 54 99 83% 0.0% 0.1%

Jeep 8,106 8,718 8% 4.6% 5.1%

Kia 5,820 5,808 0% 3.3% 3.4%

Land Rover 425 384 -10% 0.2% 0.2%

Lexus 2,030 2,063 2% 1.2% 1.2%

Lincoln 914 944 3% 0.5% 0.6%

Mazda 3,740 3,588 -4% 2.1% 2.1%

Mercedes 1,652 1,640 -1% 0.9% 1.0%

MINI 396 398 1% 0.2% 0.2%

Mitsubishi 1,597 1,723 8% 0.9% 1.0%

Nissan 8,804 7,862 -11% 5.0% 4.6%

Other 160 144 -10% 0.1% 0.1%

Porsche 234 255 9% 0.1% 0.1%

Ram 6,476 6,681 3% 3.7% 3.9%

Subaru 8,428 9,020 7% 4.8% 5.3%

Tesla 155 247 59% 0.1% 0.1%

Toyota 19,167 19,217 0% 10.9% 11.2%

Volkswagen 3,401 2,887 -15% 1.9% 1.7%

Volvo 579 787 36% 0.3% 0.5%

0.0 5.0 10.0 15.0 20.0

Volkswagen

Buick

Mazda

Hyundai

Dodge

Kia

Ram

GMC

Nissan

Jeep

Subaru

Honda

Toyota

Chevrolet

Ford

1.9

1.9

2.1

2.9

2.7

3.3

3.7

4.0

5.0

4.6

4.8

8.3

10.9

16.0

17.6

1.7

1.9

2.1

2.4

2.5

3.4

3.9

4.2

4.6

5.1

5.3

8.6

11.2

16.2

16.6

Market Share

YTD '16thru Oct.*

YTD '15thru Oct.

Minnesota Auto Outlook Data thru October 2016

This report is sponsored by the Minnesota Automobile Dealers Association and produced by Auto Outlook (800-206-0102).

Auto Outlook, Inc. is not responsible for management decisions based on the content of Minnesota Auto Outlook. Copyright Auto Outlook, November 2016.

Reproduction, including photocopying of this publication in whole or in part, is prohibited without the express permission of Auto Outlook, Inc. Any material quoted must be attributed to Minnesota Auto Outlook, pub-lished by Auto Outlook, Inc. on behalf of the Minnesota Automobile Deal-ers Association and must also include the statement: “Data Source: IHS Markit.”

State Market Share for Top 15 Selling Brands YTD ‘16 thru October* vs. YTD 15

Top ten ranked brands in each percent change category are shaded green.*Figures for October 2016 were estimated by Auto Outlook.

Data Source: IHS Markit.

*Figures for October 2016 were estimated by Auto Outlook.

Data Source: IHS Markit.

December 2016 / Page 9

NADA has commissioned an important study, “The Dealership of Tomorrow: 2025,” by Glenn Mercer, a highly regarded automotive consultant. On NADA’s behalf, Mercer is taking a comprehensive and thoroughly researched look at what automotive retailing will look like to dealers, consumers and manufacturers in 2025.

The report’s preliminary findings, which were released at the Auto Conference LA in November, are extremely positive. According to Mercer, the franchised dealership model will see plenty of evolution-but not a revolution-over the next 10 years. As anticipated, there will be some significant changes coming to U.S. dealerships, but there won’t be a disruptive overthrow of the long-held business model, which has survived more than 100 years.

Above all, Mercer found that the current dealership model will remain dominant, with direct-sales efforts focused on high-end vehicles and representing just a small fraction of U.S. vehicle sales. He also expects that dealerships will become more alike with dealers adopting prescribed features of factory stores. The number of stores may also fluctuate over the next few years, with the number of dealerships shrinking slightly, to an estimated 16,500 stores by 2025. This means that steady but slow consolidation of store ownership will continue, and private ownership will continue to dominate.

An important finding for smaller dealer members is that, while facing different challenges than larger metro dealers, they have the advantage of geographically protected markets, strong customer relationships, and lower rates of change to manage.

The report also forecasts that light-vehicle sales will be in the range of 17-18 million, much like the levels they are today. However, the mix may shift to more expensive vehicles and higher-income customers, and dealers will need to focus on capturing revenue from service-including through innovative approaches to customer service-as profit margins on new vehicles continue to decline. Additionally, online sales will become more commonplace but will not be dominant. The study also examines the impact of electric vehicles, autonomous cars and mobility services. Mercer anticipates that electric-vehicle sales will grow by 2025 but remain less than five percent of the market. Regardless, according to Mercer, it is critical for dealers to continue to embrace the market potential for electric vehicles.

The full report will be ready in time for the NADA 100th Convention & Expo in New Orleans in January. NADA plans to share the results of this study through several dealer workshops at the Convention.

Legislative News

The Dealership of Tomorrow

Upcoming ClassesRegister Today!

Register online at www.mada.org/training OR complete and return this form via email or fax to

Alice Morse alice@mada.org • Fax: 651-291-2894

Name__________________________________________ Title____________________________

Name__________________________________________ Title____________________________

Dealership______________________________________ Customer ID #____________________

Address________________________________________________________________________

Phone______________________________ E-mail______________________________________

For Information on these classes or to register online go to www.mada.org/training

The Certified Title & Registration Program*

Class Options Date LocationSales Tax9:00 a.m. - 10:00 a.m. $129 January 10, 2017

MADA Headquarters200 Lothenbach AveWest St. Paul, MN 55118

New to Fleet 10:30 a.m. - 12:30 p.m. $129 January 10, 2017

Minnesota Titles and Transfers1:00 p.m. - 3:00 p.m. $129 January 10, 2017

Title BasicsClass Options Date Location

West St. Paul9:30 a.m. - 11:30 a.m. $199 February 14, 2017

MADA Headquarters200 Lothenbach AveWest St. Paul, MN 55118

*Lunch is included, sponsored by CVR.

1. Reduce timely and costly mistakes.

2. Ultimate Customer Satisfaction - Certified Professionals become eligible for CVR (computerized vehicle registration) and receive unique access to the states e-support mechanisms with the ability to electronically communicate customer’s information to the Deputy Registrar and the state. Less wait time = satisfied customer.

3. Confidence in your Titling position - Knowledge is power and with your new certified status you’re a force to be reckoned with on the floor. Being a titling rock-star is going to feel really good.

3 Reasons to become a Certified Title and Registration Professional

December 2016 / Page 11

Endorsed Service & Vendors

MADA Services sells a wide variety of products directly to the dealers including business forms, clothing and promotional items. For a full review of options, contact your sales representative at 651-291-2400 or go to www.mada.org

Check Guarantee/Credit Card Processing FIS / Certegy

Collections Springer CollectionsComputerized Vehicle Registration CVR

Dealer Bond Program Ensure Agency

Disability Income Insurance & Section 125 Cafeteria Plans American Fidelity Assurance

F&I Products Protective

Fleet Fueling Program SuperAmerica

Group Health Insurance Blue Cross Blue Shield of MN Delta Dental ReliaStar Life

Hole-In-One Insurance Hole-In-One-USA

Lighting LED Supply Company

Office Supplies InnovativeOfficeSolutions

OSHA, EPA & DOT Compliance/Training ComplyNet CorporationPre-Paid Legal, Jim Gavin Identity Theft Shield & Pre-Paid Legal Services Uniforms and Linen Services AmeriPride Linen & Apparel Services

Workers Compensation Ensure Agency

Member News Congratulations to Madelia Ford for over 70 years of service. They have been serving the communities of Wantonwan County and the surrounding area since 1945.

C & M Ford Sales, Inc. has reached a major milestone, celebrating 50 years in business! Their doors opened in 1966 in downtown Hallock, and they have been providing hometown service ever since. Congrats!

Kohls-Weelborg Ford recently received the Progress Award by the Redwood Area Chamber for its building renovation project in Redwood Falls.

MADA extends its sympathies to the family of Mike Dockendorf who passed away unexpectedly on Tuesday, November 15, 2016. Mike was President of St. Cloud Toyota at the time, and he had previously served on the Board of Directors for MADA and was recently serving on the MADA Services Board.

After 45 years in business, Roger & Francis Zeimetz have announced the sale of Zeimetz Motors to Spring Valley Chevrolet Buick Inc. The new owners are Adam Otto and Blake Greenfield.

Congrats to Robert W. Nuss, president of Nuss Truck Group, Inc., in Rochester, Minn. for being nominated as one of five candidates by the American Truck Dealers (ATD), Heavy Duty Trucking and Procede Software as a candidate for the 2017 Truck Dealer of the Year. The winner and runner-up will be announced during the 54th annual ATD Convention and Expo in New Orleans, which runs concurrently with the 2017 NADA Convention and Expo.

Scott Lambert, President • 200 Lothenbach Ave. • West St. Paul, MN 55118 • (651) 291-2400 • 1-800-652-9029 • FAX (651) 291-2894

200 Lothenbach AvenueWest St. Paul, MN 55118

ADVOCACY • EXPERTISE • EDUCATION • COMMUNICATIONMADA NEWS • December 2016

FAQQ: I heard there are title fee changes coming January 1. Is that true?

A: Back in 2013, the Minnesota legislature acted to get rid of the pesky reassignment fee of $5.50 which until the end of the year is charged for each assignment on a used vehicle title. To offset lost revenue, the Title/Transfer fee was raised from $6.25 to $8.25. Even though the legislature passed the law in 2013, there was a delayed effective date to January 1, 2017.According to DVS, dealer work with the old fees that is submitted to a Deputy Registrar with a sale date prior to January 1, 2017 will be allowed to be processed by a Deputy Registrar office until January 31, 2017. Beyond January 31, 2017, all transactions must comply with the new law changes regardless of the sale date.Again, effective January 1, the Title/Transfer fee is increasing from $6.25 to $8.25. The reassignment fee of $5.50 is removed completely.