Last Chance to Nominate a Michigan Dealer for 2025 Time and Northwood Awards!

Do you know a Michigan dealer who regularly supports community and educational programs and brings positive attention to our industry?

MADA is seeking recommendations for who our association should nominate for the 2025 TIME Dealer of Year award and Northwood Dealer Education award.

Nominees must be the designated dealer principal, actively involved in managing the dealership. Nominees should also be active participants in MADA.

Please click here to read more about these two dealer awards and nominate a dealer who deserves to be recognized. All nominations must be received by July 19, 2024

Dealer Training for MADA Members

Registration is now open! MADA has arranged for State of Michigan and CVR representatives to provide in-person dealer training, specifically for MADA members. Presentations will address issues related to new vehicle sales transactions and paperwork processing, plus an added CVR user group.

 

Training will include two sessions:

  • Session 1 at 9:30 am | Dealer Training. This session will provide information to help you and your colleagues maintain compliance with Michigan Department of State regulatory issues, ensuring your dealer license remains in good standing.
  • Session 2 at 1:00 pm | CVR User Group. Learn new-user tips, processing guidance, program updates, and other valuable information for those using CVR

 

This training program will be offered in two locations:

  • August 26 | Henry Center, MSU in Lansing  FULL, not accepting new registrations
  • August 27 | Otsego Resort in Gaylord

 

Refreshments and lunch will be provided. Ample time will be provided for Q&A during and following each session.

This program has generously been sponsored by CVR so there is no cost for MADA members to attend. Please see this registration form for additional information. Online registration is also available.

NEW! Self-guided Dealer Training

The Michigan Department of State (MDOS) has announced a new option to access dealer training. This new, online, self-guided continued education dealer training program is offered through MI-TRAIN. (Scheduled, live training is still available through your CARS e-Services login.)

There are a number of steps required to get set up with MI-TRAIN in order to access the self-guided training. MDOS has created a detailed walk-through to help dealerships register. (Please pay special attention to the instructions under Step 3.)

While dealer training is not mandatory for new vehicle dealerships, it can be a great option for employees who need a refresher on the Dealer Manual and compliance requirements within the Michigan Vehicle Code.

Garage Keeper’s Lien — Timeline & FAQs

 

MADA occasionally receives questions about garage keeper’s liens and State of Michigan requirements. Garage keepers (i.e. repair facilities) can file for a garage keeper’s lien (GKL) if charges for services done at the request of the owner (as listed on the title) are not paid. Once the vehicle is later sold, the lien entitles the garage keeper to compensation for certain costs, assuming proper regulations have been followed.

The Garage Keeper’s Lien Act has a somewhat complex list of rules and regulations. Dealers should be aware of the requirements, the timeline and verify that appropriate staff is fully knowledgeable of their responsibilities within the act.

Within 105 days of the last day of work performed on the vehicle, the repair facility needs to make application to the Michigan Department of State (MDOS) for the garage keeper lien. The last day work is performed on the vehicle is considered the day the lien attaches.

MDOS will process the BDVR-35 then provide the repair facility with a completed TR-42 Certificate of Foreclosure of Garage Keeper’s Lien and Bill of Sale form. This is the document used by the repair facility to sell the vehicle.

The repair facility has 30 days from the issuance date of the TR-42 to send a certified letter with the required information:

  • The letter must be mailed, return receipt requested, to all owners, lienholders and MDOS
  • The letter must include an itemized list of the amount due, a demand for payment, a statement that all lienholders are being notified of the delinquency, and a statement of daily storage fees
  • The letter must also include the date, time, manner, and location of the vehicle sale

The vehicle sale must be at least 75 days after the issuance date of the TR-42. It is important that repair facilities follow the very specific rules for selling the vehicle. The Garage Keeper’s Lien Act states “the garage keeper may sell the vehicle at a public sale…”

This total process cannot take more than 225 days from the date the lien attaches.

This is a simplified overview of the process. Before applying for a garage keeper’s lien MADA encourages dealers to review additional information and guidelines from the state:

If you have further questions please reach out to MADA.

Clean Vehicle Credits – Registration, Time of Sale Reporting and Credit Transfers

The IRS outreach team for Michigan recently provided a list of various resources for dealers and car buyers. As you are aware, clean vehicle dealers and sellers must use the IRS Energy Credits Online tool to register with the IRS and to submit time-of-sale reports. Licensed dealers can also register to receive advance payments to offset the amount of a tax credit applied toward a customer’s purchase price.

Whether or not you are currently selling eligible EVs, it is a good idea to be registered with the IRS portal. There is a bit of effort that goes into the registration process and it is best to be prepared before you need it. All time-of-sale reports for vehicles placed in service in 2024 and forward must be submitted through this tool.

Energy Credits Online Registration Portal:

  • Publication 5862 Energy Credits Online: Register for Energy Credits Online (Spanish)
  • Pub 5863, A Step-By-Step Guide for New and Used Clean Vehicle Dealers and Sellers for the Energy Credits Online (Spanish)
  • Pub 5867, Clean Vehicle Dealer and Seller Energy Credits Online Registration User Guide
  • Pub 5902, Clean Energy Authorization Permission Management

Time of Sale Reporting:

  • Pub 5864, New and Previously Owned Clean Vehicle Credit Time of Sale Reporting with Energy Credits Online (Spanish)
  • Pub 5867-A, Clean vehicle time of sale reporting user guide

Credit Transfers:

  • Pub 5865, Clean Vehicle Credit Transfer
  • Pub 5899, Clean Vehicle Credit Transfer: Information you need to provide to the registered dealer (Spanish)
  • Pub 5900, Important Information for Consumers Transferring Clean Vehicle Tax Credits (Spanish)

For Car Buyers:

Workers’ Comp Webinar for Michigan Dealers

The Michigan Auto Dealers Self-Insured Workers’ Compensation Fund (MADSIF) was created by MADA and a group of dealers more than 30 years ago, specifically to benefit Michigan dealerships. It is run by a 13-member Dealer Board of Trustees, each with a strong history in the business

MADA invites you to join us for a webinar with MADSIF to learn more about the advantages of this workers’ comp program and how it supports MICHIGAN dealerships and dealership employees.

  • Partner-based claims management
  • Safety training for all new and existing employees
  • Resources to prepare for MIOSHA visits & fine prevention
  • Webinars, in-person trainings and one-on-one time

 

This program is tailored to support Michigan dealers and is designed to be a valuable asset in enhancing operational efficiency and financial returns. Please join MADA & MADSIF for a webinar on May 21st at 1:00 pm REGISTER

Contract Considerations for Under-18 Drivers

School is almost out for the summer and high schoolers with a driver’s license are ready to be on the open road!

If a young driver comes to your dealership interested in a vehicle, it is important to remember that a contract with a minor is not enforceable. A vehicle contract with an individual under the age of 18 can be rendered null and void. This could lead to a vehicle return for any reason and a requirement for reimbursement. (While legally emancipated minors may be able to enter into an enforceable contract, it can be a tricky situation.)

Purchase. Dealers are advised to require a responsible adult to become the purchaser or co-purchaser of a vehicle. An adult, usually a parent/guardian, should sign the buyer’s order, lease or rental agreement, as well as financing documents. This policy should apply if the vehicle is paid fully in cash, or financed.

Warranty. Minors are often interested in your “budget” lot and purchase lower-cost, used vehicles. It is highly encouraged that the dealer explain the warranty, if any, and request an adult co-purchaser acknowledge all aspects of the sale in writing.

Maintenance/Repair. This same reminder extends to the service department. A minor authorizing expensive repairs could attempt to void a service bill based on the fact that he or she is under the age of 18. Make certain that an adult is jointly or individually responsible for vehicle repairs.

If you have questions please call MADA at (800) 292-1923.

New Michigan Driver’s License and State ID

In January of this year, MDOS began issuing Michigan driver’s licenses and state IDs featuring a new hard card design. There are currently two design versions in circulation.

NEW DESIGN: All enhanced cards requested on or after Jan. 16 and standard cards requested on or after Jan. 23 are produced using the new design.

PREVIOUS DESIGN: All cards that feature the Mackinac Bridge are valid until expiration and are expected to be completely phased out of circulation by January 2029.

In line with national best practices and cutting-edge technology, Michigan changed the look of its driver’s licenses and state IDs to include engraved data and numerous other new security features that will reduce the risk of counterfeiting and fraud. To learn more about these features, please see this one-page summary document.

  • The font and color theme have been updated to clearly distinguish from the previous design, and the cards prominently display the Michigan Coat of Arms.
  • The names of the five Great Lakes can be seen in multicolored text when the card is held at certain angles. Shading and curved lines in the new design are difficult to replicate, strengthening the integrity of the cards.
  • The new cards include a two-line name format that will accommodate more characters than the previous design.
  • The state is using a gold Michigan shape with a star in it to indicate licenses and IDs that are REAL ID-compliant.

BARCODES: As part of the card redesign, the magnetic stripe on the back of these new cards has been removed. Updates were made to the configuration of the barcodes that contain the information from the front of the card. Businesses may need to recalibrate their scanners to the new configuration. 

Kindness is Good for Your Mind, Brain & Body

Healthy eating, consistent exercise, and good sleep are pillars of excellent health but don’t underestimate the physiological benefits linked to being kind and generous.

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How kindness helps you:

It’s good for the brain ????: Kindness generates a chemical response in our brains by boosting neurotransmitters in our brains like dopamine and serotonin

It’s good for the mind ????: New studies show that the social connection promoted by engaging in acts of kindness is a key predictor of both well-being and recovery from anxiety and depressive disorders.

It’s good for the body ❤️: Another lesser-known neurotransmitter activated by acts of kindness is oxytocin, which is sometimes known as the “love hormone. As oxytocin levels in our bodies increase, blood vessels dilate, inflammation is reduced, and our blood pressure is lowered.

 

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Michigan Dealer Awards – Nominations Open

MADA is seeking nominations to help us recognize Michigan dealers who not only excel in their professional roles but also demonstrate a commitment to making a tangible difference in shaping the future of our industry and the community. Nominees are leaders within the dealership community, advocates for education, and deeply involved in their local communities.

 

The prestigious Time Dealer of the Year Award aims to recognize and celebrate the exceptional contributions of automotive industry leaders within our community. Dealers nominated for this award embody excellence in both their professional endeavors and community engagement.

 

The Northwood Dealer Education Award was developed to honor outstanding automobile dealers and celebrate the unwavering dedication and significant contributions of these leaders to the advancement of education, both within and beyond the automotive industry.

 

Nominations can be submitted using this form until July 19, 2024. Please help MADA honor those who go above and beyond to drive excellence in both business and community service within the automotive industry.