Annual Contribution of Michigan’s New-Car Dealers

Michigan’s new car dealers make a significant contribution to our economy through employment, taxes paid and community involvement.  Consider these numbers…

  • Michigan has  611 new car dealerships, with an average of 60 employees per dealership.
  • When indirect and induced jobs are added in, that increases to 76,322 total jobs created by Michigan dealerships!
  • $667 MILLION is paid in income taxes (includes income taxes paid for direct, indirect and induced jobs).
  • Michigan dealerships have a $1.9 BILLION payroll.
  • With $36.9 BILLION in total sales, Michigan dealerships account for nearly 30% of the state’s total retail sales.

These numbers reflect annual economic activity during 2016. For economic numbers for other states please check out the NADA website at www.nada.org/statedata.

 

Let MADA help with your installment seller license renewal!

 The Michigan Department of Insurance and Financial Services (DIFS) emailed installment seller license renewals to dealerships the second week of April. (Reminder: these documents were sent to the email address on file for the dealership.) Please print the renewal application and attachments provided by DIFS then complete and sign as required.

As a complimentary benefit of MADA membership, dealers are encouraged to send their completed renewal paperwork to MADA.  We will review your documents for accuracy and personally deliver all paperwork to the state.

Did you know? In previous years, the state had a long list of dealers whose renewal paperwork was incomplete or incorrect and the state was prepared to cancel the licenses. In most instances, the dealership was not aware there was a problem. Dealers who renew through MADA can help avoid this concern; we will contact you directly to correct errors before the renewal is delivered to the state and confirm the license has been renewed.

For more information please go here.

National Foundation for Teen Safe Driving

It’s the time of year most high school seniors have been looking forward to since school began. Classes are winding down and senioritis is at epidemic levels as thoughts turn to prom night, graduation, celebrations and summertime fun.

Statistics identify this as one of the deadliest times of year for teens, with seven of the top 10 deadliest driving days occurring between Memorial Day and Labor Day. According to National Highway Traffic Safety Administration (NHTSA) statistics, nationwide, 48 teenagers die and another 5,202 are injured in car crashes on a typical prom weekend. For the past several years during prom weekend, approximately 300 teens have died in alcohol-related crashes.

Safety is a shared responsibility that starts with smart choices and safe driving. Make a promise today and do your part to make this a safe, exciting and memorable time for the graduating class of 2017.

Learn more >> https://nftsd.org/outreach/awareness-campaigns/senior-promise-2017

 

How does your dealership compare?

Have you ever been curious how your pay plan and benefits compare to other dealers in your region? NADA and ATD invite members to participate in the 2017 Dealership Workforce Study, which gathers information to help you compare your dealership against aggregated data from your peers across the nation and region, right down to dealerships selling your brand in your state. Participants will also receive an overall analysis with data for every region of the U.S.

Compete smart.

  • Make informed decisions on pay plans, benefits and work schedules.
  • Take steps to reduce turnover and retain your best employees.
  • Know the demographic issues facing your dealership.

Learn how you can participate at www.nadaworkforcestudy.com.

“Tent” Sale Requirements

To ensure the most success for your temporary or “tent” sale, please remember to first obtain the necessary approval from the State of Michigan. Temporary sale locations must be properly licensed with the Department of State and are permitted only within a dealer’s county of licensure.
Temporary sales may include a “tent sale” or a similar event during which vehicles may be displayed and sold for a specified length of time. There is no cost to obtain licensing for a temporary sale. However, the following must be provided 15 days prior to the sale for the state to review and approve:

  • Vehicle Dealer Supplemental Location Application form (link)
  • Michigan Vehicle Dealer Close Out Statement for Temporary Location form(link)
  • Enclose either a franchise approval to sell new vehicles at the sale location, or self-certify that you have authorization to sell new vehicles at the sale location during the dates specified. If only selling used vehicles at the off-site location, you will need a letter signed by the owner stating that the dealership will only be selling used cars.  **Sample letters**

If you have questions please call Jean Quinn at (800) 292-1923 or email jquinn@michiganada.org. Completed forms can be returned to MADA via fax at (517) 351-3120 or by email to Jean. Forms will be reviewed for accuracy and forwarded to the state for processing.

Vehicle Dealer Training from the State of Michigan

The Michigan Department of State is offering full-day training in Lansing to assist all classes of licensed vehicle dealers and their staff on the basic requirements of the Michigan Vehicle Code.  There are no course registration fees, but classes fill quickly and registration is first come, first served.
This class is designed for dealership owners, managers, sales and office staff. It will cover topics such as:
  • Michigan.gov/sos and other state Web sites
  • Vehicle Trade-In Credit
  • 2017 Vehicle Registration Fees
  • TR-210/TR-209 Secured Interest Change on Title Process
  • Dealership Records
  • Dealer Plate Usage
Registration details can be found here.

Repair Facility Training from the State of Michigan

The Michigan Department of State offers half-day training sessions to help repair facilities and their employees with the basic requirements of the Motor Vehicle Service and Repair Act and to answer their questions. There are no course registration fees, but classes fill quickly and registration is first come, first served.
This class is designed for repair facility owners, managers, service advisers and technicians. It will cover topics such as:
  • The Repair Facility Manual
  • Proper written estimates and final invoices
  • Record keeping requirements
  • Repair facility and mechanic responsibilities
  • Common mistakes to avoid
  • Other basic requirements
Registration details can be found here.

Dealer plate reminder

Dealers are reminded that your current dealer plates remain active through February 28, 2017. New plates will be mailed via UPS in mid to late February.  Dealers with a multi-year dealer license with the State of Michigan will receive the same number of plates previously ordered. These plates will also be shipped in February.
If you have questions please call Jean Quinn at (800) 292-1923 or email jquinn@michiganada.org.

2017 Registration Fee Changes

Public Act 174 of 2015 amends the Michigan Vehicle Code to raise the following vehicle registration fees by 20% effective January 1, 2017:

  • Ad valorem fees
  • GVW fees

 

Added fees for electric & hybrid vehicle

Effective January 1, 2017, electric and hybrid passenger vehicle registrants will be required to pay 20% higher registration fees and an additional fee in the following amounts:

  • Electric vehicles pay an added $135 (not prorated):
    $100 electric fee + $35 electric gasoline tax fee = $135
  • Hybrid vehicles pay an added $47 (not prorated):
    $30 hybrid fee + $17 hybrid gasoline tax fee = $47

 

Keep reading>> Dealer bulletin: registration fee increase

Sales Tax Trade-In Credit Increases, plus new RD-108

Beginning January 1, 2017, owners trading in a motor vehicle or trailer coach receive a sales tax credit for the vehicle’s trade-in value up to a maximum of $3,500. This is a $500 increase from the 2016 maximum of $3,000. The partial sales tax trade-in credit increases by law $500 annually. Note: the delivery date determines which credit amount is applied.
New RD-108 Form
The current version of the RD-108 is being replaced. Vehicle dealers may begin submitting the new edition of the RD-108 form for any vehicle delivered to the purchaser beginning January 1, 2017.  (The Department will not accept any transactions submitted on the previous revision as of July 5, 2017.)

A dedicated line for the partial trade-in sales tax credit has been added to the new form. Therefore, dealers no longer need to submit the RD-108T when using the 2017 RD-108 form.

Please see the following links for additional information: