Year: 2022

NADA Dealership Workforce Study Now Open

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Participating dealers receive compensation and retention data
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The NADA Dealership Workforce Study is the only authoritative and comprehensive examination of dealership compensation, benefits, turnover and retention, hours of operation, demographics, and work schedules. This study provides valuable compensation and retention data on over 60 dealership positions. All data submitted is confidential and no identifiable information is shared.

Participating dealers will receive:

  • Custom Comparison Report – How Your Dealership Compares – how your dealership(s) stack up to comparable dealerships in the nation, region, sales volume and either luxury or non-luxury brands.
  • 2022 NADA National & Regional Trends in Compensation, Benefits & Retention Report – Comprehensive report with analysis of the 2021 calendar year payroll data submitted by the participating members. Summary of benefits, demographics trends, luxury vs. non-luxury comparisons and regional highlights.
  • Access for one year to the NADA Database Search Tool – online database with compensation and retention data from over ten years of NADA Dealership Workforce Studies. Allows you to custom search data for 60+ positions and narrow search to brand, state, city or even zip-code.

NADA dealers who choose not to participate are not eligible for a custom comparison report. However, the Trends report can be purchased (2021 version is $499). These materials are provided for free to those who participate.

Gov. Announces Future $2,000 Rebate for EVs

Posted on by Summer
During Governor Whitmer’s State of the State, she announced a proposed rebate for Michigan residents who purchase a new battery electric vehicle or plug-in hybrid electric vehicle. The governor’s plan to promote the purchase of EVs includes a $2,000 rebate for a new electric vehicle and $500 rebate for at-home charging infrastructure, which can be paired with the $7,500 federal tax credit, knocking nearly $10,000 off the price of a new electric car.

This is an exciting incentive for consumers considering electric vehicles. Implementation of these Michigan rebates will first require the proper legislative process. The electric and plug-in hybrid rebate is not currently available to consumers.

MADA President Bill Perkins commented that the consumer rebate is welcome news for dealers who are looking forward to showcasing current and upcoming EVs from manufacturers in the U.S. and around the globe. “Dealers will be a great resource to find out more about this consumer rebate, see what’s currently available, and learn about exciting new vehicles coming soon,” he said.

To read the complete State of the State address and learn more about the governor’s plans for Michigan, click here.

 

Due Jan. 31: Form 8300 Cash Reporting Customer Notification

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Legal reminder from Colombo & Colombo, P.C.

As part of the IRS cash reporting rule, on or before the January 31st following the calendar year for which the Form 8300 was filed, dealerships must provide a written statement to each individual who has been identified on a Form 8300.

Therefore, for transactions that were reported to the IRS for 2021, it is necessary to inform any customer of the Form 8300 filing on or before January 31, 2022. This notification must include the name, telephone number and address of the dealership, the amount of cash that was received by the dealership and that the information has been reported to the IRS.  Please note: The law requires written notification. Merely informing the customer at the time of the sale that you will be filing the Form 8300 is not sufficient. If you sent the customer the notice letter at the time of the transaction, you do not need to send a notice at this time.

Click Here for a sample letter that the dealership can use to notify the customer of the Form 8300 reporting. Failure to send written notice to customers as specified above can result in civil penalties ranging from $250 to $500 per customer. The IRS recommends that businesses keep a copy of every Form 8300 it files and the required statement sent to each customer for at least five years from the date filed.

Vehicle Transactions in 2022

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Plug-In Hybrid and Electric Vehicle Fee Increase

Effective January 1, 2022, the added registration fees for plug-in hybrid and electric vehicles increased by the following amounts:

  • The electric vehicle fee increased from $135 to $140 (for vehicles that weigh 8,000 lbs. or more, the fee increased from $235 to $240)
  • The plug-in hybrid fee increased from $47 to $50 (for vehicles that weigh 8,000 lbs. or more, the fee increased from $117 to $120)

NOTE: For dealer transactions, CARS e-Services/CVR determines the correct fee to charge based on the delivery date:

  • If the delivery date is 12/31/2021 or earlier, the previous plug-in hybrid or electric fee is charged.
  •  If the delivery date is 1/1/2022 or later, the increased plug-in hybrid or electric fee is charged.

Up to $8,000 Sales Tax Trade-in Credit

Effective January 1, 2022 the sales tax trade-in credit amount for vehicles delivered on or after January 1 is the price agreed to by the dealer and purchaser for the trade-in vehicle not to exceed $8,000. Please read this notice from the Michigan Department of State for more information.

New Requirement in 2022: Fuel Type Designation on RD-108

In January of 2022, the Michigan Department of State will require all dealers to designate the vehicle fuel type for each new vehicle transaction. This requirement will be enforced by the Michigan Department of State, Business Licensing Division. During MDOS inspections, compliance with this requirement will be reviewed.

The exact implementation date has not yet been announced, but we anticipate the state will begin mandating it by mid-January.