According to reports in the FTC’s Consumer Sentinel database, text message scams took consumers for $330 million in 2022. The latest Consumer Protection Data Spotlight focuses on this form of fraud. With reported losses more than doubling in 2021 and nearly five times what people reported in 2019, would you be able to spot the five most common text message scams? What about your employees?

The Data Spotlight focuses on these five common text message scams.

1.  Copycat bank fraud prevention alerts.  According to the Data Spotlight, reports about texts impersonating banks are up nearly twentyfold since 2019 with median reported individual losses of $3,000 last year. People get a text supposedly from a bank asking them to call a number ASAP about suspicious activity or to reply YES or NO to verify whether a transaction was authorized. If they reply, they’ll get a call from a phony “fraud department” claiming they want to “help get your money back.” What they really want to do is make unauthorized transfers. What’s more, they may ask for personal information like Social Security numbers, setting people up for possible identity theft.

2.  Bogus “gifts” that can cost you.  What about those texts claiming to be from a well-known company offering a free gift or reward? If people click the link and use their credit card to cover the small “shipping fee,” they’ve just handed over their account information to a scammer. Reports to Consumer Sentinel tell us that fraudulent charges are likely to follow.

3.  Fake package delivery problems.  On any given day, what home or business isn’t expecting a delivery? Scammers understand how our shopping habits have changed and have updated their sleazy tactics accordingly. People may get a text pretending to be from the U.S. Postal Service, FedEx, or UPS claiming there’s a problem with a delivery. The text links to a convincing-looking – but utterly bogus – website that asks for a credit card number to cover a small “redelivery fee.”

4.  Phony job offers.  With workplaces in transition, some scammers are using texts to perpetrate old-school forms of fraud – for example, fake “mystery shopper” jobs or bogus money-making offers for driving around with cars wrapped in ads. Other texts target people who post their resumes on employment websites. They claim to offer jobs and even send job seekers checks, usually with instructions to send some of the money to a different address for materials, training, or the like. By the time the check bounces, the person’s money – and the phony “employer” – are long gone.

5)  Not-really-from-Amazon security alerts.  People may get what looks like a message from “Amazon,” asking to verify a big-ticket order they didn’t place. Concerned about the security of their account, people call the number in the text and are connected to a phony Amazon rep who offers to “fix” their account. But oopsie! Several zeroes are mistakenly added to the “refund” and the “operator” needs the caller to return the overpayment, often in the form of gift card PIN numbers.

According to the Data Spotlight, reporting can help stop scam text messages. Forward the text to 7726 (SPAM). This helps your wireless provider block similar messages. Report it on either the Apple iMessages app or Google’s Messages app for Android users. And report it to the FTC at ReportFraud.ftc.gov.

https://www.ftc.gov/business-guidance/blog/2023/06/can-your-staff-spot-five-most-common-text-message-scams

IRS issues guidance and updates frequently asked questions related to the new clean vehicle critical mineral and battery components

Search eligible vehicles at FuelEconomy.gov: https://fueleconomy.gov/feg/tax2023.shtml

WASHINGTON — The Internal Revenue Service issued a proposed regulation related to certain requirements that must be met for critical minerals and battery components for the new clean vehicle credit.

The Inflation Reduction Act (IRA) allows a maximum credit of $7,500 per vehicle, consisting of $3,750 in the case of a vehicle that meets certain requirements relating to critical minerals and $3,750 in the case of a vehicle that meets certain requirements relating to battery components.

The critical mineral and battery component requirements will apply to vehicles placed in service on or after April 18, 2023, the day after the Notice of Proposed Rulemaking is issued in the Federal Register.

New clean vehicles placed in service on or after April 18, 2023, are subject to the critical mineral and battery component requirements even if the vehicle was ordered or purchased before April 18, 2023. A vehicle’s eligibility for the new clean vehicle credit is generally based on the rules that apply as of the date a vehicle is placed in service, meaning the date the taxpayer takes delivery of the vehicle.

This means that the vehicle may or may not be eligible depending on whether it meets the critical mineral and battery component requirements.

As a result of this guidance, the IRS updated the frequently-asked-questions (FAQs) for the clean vehicle credits.

Fact Sheet 2023-08 updates FAQs related to new, previously owned and qualified commercial clean vehicles.

The FAQs revisions are as follows:

• Topic A: Eligibility Rules for the New Clean Vehicle Credit: Questions 2, 3, 4, 5, 6, and 7, added question 11
• Topic B: Income and Price Limitations for the New Clean Vehicle Credit: added question 2, renumbering questions 2 through 10 to 3 through 11, respectively, updated questions 1, 3, 7, 8, and 9
• Topic C: When the New Requirements Apply to the New Clean Vehicle Credit: Questions 2, 4, 5, and 6, added question 8, renumbered prior question 8 to question 9
• Topic F: Claiming the Previously Owned Clean Vehicles Credit: Question 2
• Topic G: Qualified Commercial Clean Vehicles Credit: Added question 10

These FAQs are being issued to provide general information to taxpayers and tax professionals as expeditiously as possible.

Do You Know a Dealer Whose Support Goes Above and Beyond?

Each year during the NADA Show, Michigan dealers are awarded for their strong commitment to community and/or education. MADA is now accepting nominations for the TIME Dealer of the Year award and the Northwood Dealer Education award, to be presented during the 2024 NADA Show in Las Vegas.

It is always an honor to recognize individuals who improve their local community and provide opportunities for those around them. Dealers provide a significant and positive impact on the communities where they live and work. Dealers also support local schools, provide on-the-job training for students, and sponsor youth programs. MADA requests your help to nominate dealers who go above and beyond for their community.

Please review the nominee qualifications and let us know who you feel is deserving of a prestigious dealer award. *nomination form*

The TIME Dealer of the Year award recognizes exceptional performance and outstanding community service that is an inspiration to us all. By presenting this annual award, TIME, Ally and NADA honor new-car dealers across America and their tireless efforts to improve their communities and the world around them

 

The Northwood Dealer Education Award was developed by Northwood University to recognize automobile dealers across the United States for their dedication and contributions to the advancement of education at all levels, both inside and out of the automotive industry.

The Michigan Department of Insurance & Financial Services (DIFS) issued a bulletin on March 7, 2023 in response to some insurers refusing to accept new customer applications for certain model years and trim levels of Hyundai and Kia vehicles.

The bulletin states, in part:

It has come to the Department’s attention that some insurers intend to refuse to insure certain model Kia and Hyundai vehicles on the basis that those models lack particular anti-theft technology or that there has been an increase in thefts of those vehicles. The purpose of this bulletin is to remind insurers and consumers that automobile insurers in Michigan must offer insurance coverage to all “eligible persons” and that a failure to do so may constitute a violation of the Essential Insurance Act.

Section 2118 of the Insurance Code (Code), MCL 500.2118, prohibits an insurer from refusing to insure, refusing to continue to insure, or limiting the coverage available to an eligible person for automobile insurance except in limited circumstances specifically delineated in Section 2118. Although Section 2118(2)(e) permits an insurer to refuse to insure based upon vehicle type, insurers may do so only if: a) the vehicle is of limited production or of custom manufacture; b) the insurer does not have a rate lawfully in effect for the type of vehicle; or c) the vehicle represents exposure to extraordinary expense for repair or replacement under comprehensive or collision coverage. See MCL 500.2118(2)(e). The Code does not permit an insurer to refuse to insure, refuse to continue to insure, or limit coverage available to an eligible person based on national theft trends or the absence of antitheft technology.

Read the complete bulletin: DIFS Bulletin 2023-03-INS

Randy Barone with ACV spoke with with 70+ MADA dealers and used vehicle employees this week to provide current insight on the state of the pre-owned industry. He provided expert guidance on acquiring the best vehicles for your specific location, top appraisal techniques, why some cars on your lot aren’t selling, and suggestions to make the most of the programs you are paying for.

We thank the many dealerships that logged in to listen. We hope you learned some valuable information that can be implemented at your dealership to help build a healthy used vehicle department in 2023.

By request, a recording of the webinar and a copy of the slide deck can be found here:

• Webinar Recording 
• ACV Slide Presentation

A recent Talking Michigan Transportation podcast provided a conversation with Eric Morris, Michigan office lead for HNTB, the transportation consultant selected to complete a tolling study.

Some 35 states have at least one facility with tolling. But that number is a little deceiving because Michigan would be counted in that total since there is tolling on big bridges and/or international crossings but no tolling on non-bridge road segments.

Morris says the experts analyzed all 31 highways in Michigan for the study and determined that 14 could become toll roads, including large portions of Interstates 75, 94 and 96.

As Bridge Michigan reported, any tolls would take years to implement and require approval from the Legislature and the governor, among numerous hurdles.

Morris talks about the differences between various road user charge (RUC) options, including mileage-based user fees (MBUF) and tolling and how pilot programs seeking people to participate have been voluntary, so far, including one in Oregon that has generated a lot of discussion.

On January 13, 2023 the Department of Insurance and Financial Services (DIFS) reviewed the documentary preparation fee (doc fee) adjustment and has determined the maximum shall be adjusted to $260.00, which reflects the cumulative percentage change in the consumer price index for the past two calendar years. Accordingly, the documentary preparation fee shall not exceed 5% of the cash price of the motor vehicle or $260.00, whichever is less.

The maximum documentary preparation fee is reviewed and adjusted every two years to reflect the cumulative percentage change in the consumer price index of the two immediately preceding calendar years.

Also see DIFS bulletin 2023-01-CF for information. DIFS will next review the maximum allowable doc fee amount in mid-January 2025.

NADA offers its members various “one-stop” webpages with federal regulatory and compliance topics to assist dealers as they prepare for new regulations.

 

Many MADA preferred partners and associate members will be offering freebies and information on the NADA Show Expo Floor. View this handout to see who will be there, with booth locations noted. Then stop by Jan. 27-29 and learn how these companies can support your dealership.

 

Plan Your Expo Experience (links from NADA)

• Exhibitor List
• Expo Floor Plan
• NADA Expo Specialty Booths
• About the Expo
• Lifestyle

Public Acts 1 & 2 of 2018 changed the maximum trade-in value partial sales tax trade-in credit to incrementally increase annually. Beginning January 1, 2023, owners trading in a motor vehicle receive a sales tax credit for the vehicle’s trade-in value up to a maximum of $9,000. This is a $1,000 increase from the year 2022 maximum of $8,000.

Frequently Asked Questions

Can a trade-in sales tax credit be applied to a lease vehicle transaction?
No, the trade-in credit laws do not provide for trade-in tax sales tax credit for leased vehicles.

Is a motorcycle, moped, or motor home taken as a trade-in eligible for the trade-in sales tax credit?
Yes, any vehicle meeting the Michigan Vehicle Code definition of a motor vehicle is eligible for the trade-in sales tax credit.

Can valuables such as jewelry, coins, or collectibles taken as a trade-in receive sales tax credit?
No, the sales tax trade-in credit laws only provide a sales tax credit trade-in on eligible motor vehicles and recreational vehicles.

Can more than one vehicle be used as trade-in credit?
No, only one vehicle can be used toward the sales tax trade-in credit. If two or more vehicles are traded in, sales tax credit for only one of the vehicles can be applied.

 

Please see this bulletin from MDOS for more information and common questions about the credit.