OFFICIAL PUBLICATION OF THE CALIFORNIA NEW CAR DEALERS ASSOCIATION

Pub. 4 2022 Issue 1

President's-Message

President’s Message: It’s Shaping Up to Be a Year to Remember

We are only several months into 2022, and already this year is one for the books. With an unprecedented effort to eliminate PAGA, a historic election year that will change the legislature for years to come, and a full slate of legislative battles, CNCDA is in overdrive to seize the opportunities in front of us.

Just ahead of the New Year, we launched a massive fundraising effort to support our ballot initiative to replace PAGA. CNCDA is leading the entire business community to bring this issue to the voters and finally be rid of the lawsuits it brings. In just three months, we raised over $3 million, demonstrating the leadership of our dealers in taking on this fight. Other groups have stepped up to the plate, following your example.

This month, we held our annual Dealer Day event; we went back to Sacramento for the first time in two years. The voices of those in attendance were critical to our efforts in the Capitol. The legislature has kept our advocacy team busy with a long list of propositions that would have massive impacts on dealers. Chiefly among them, and a heavy topic at Dealer Day, AB 2311 would place restrictions on dealers’ ability to offer GAP protection to their customers. The bill would place caps on how much waivers could cover, mandate even more disclosures, and could lead to it ultimately no longer being worth the effort to offer. Another bill, SB 1311, would mandate car dealers provide an annual, cost-free right for military service members who purchase or lease a motor vehicle to cancel the purchase or lease within 30 days, essentially providing a free, brand-new rental car at the expense of the dealer. Worse still, those that violate this law face a misdemeanor and could even be sentenced to prison.

Fortunately, it’s not all a fight in opposition. This year, we are fighting to finally modernize the Document Processing Charge (DPC) and get dealers the compensation they deserve. With the help of Senator Bob Archuleta, SB 1249 faces a difficult path to the Governor’s desk, but the tireless work being done by our team has given it an extremely promising start.

As we approach November, PAGA is not the only thing we are watching closely on the ballot. With new district lines drawn, many lawmakers have decided not to seek reelection, and with others terming out, this election will bring the most open seats in recent memory. Many of these new lawmakers will remain fixtures in the Legislature for the next 12 years, providing an invaluable opportunity to create relationships now.

In another historical development, an unprecedented three dealers are currently running for legislative office. Matt Gunderson, Jasmeet Bains, and Roger Niello have all started their campaigns and would bring to the Capital the knowledge and experience of what it takes to be California’s new car dealers. The value these three would bring to the legislature, and the opportunity this represents, cannot be overstated.

Beyond our advocacy efforts, I would be remiss in not addressing what we have all been waiting for; we are extremely excited to welcome the return of in-person events! After a taste of normalcy during last year’s Convention in Hawaii, we have been anxiously awaiting any chance to get back to seeing one another. Dealer Day was long overdue and everything we could have hoped for, setting the stage for even more excitement for this year’s annual Convention. A huge thank you to everyone who joined us; it would not have been what it was without you.

Speaking of the Convention, it’s hard to compete with Maui, and last year’s event set the bar to new heights. This year, we will raise it even further. With the stunning backdrop of the Ritz Carlton Laguna Niguel and hopefully pandemic era restrictions long behind us, we look forward to exceeding your expectations this October.

As always, your CNCDA team is here to provide the resources you need to keep your dealership running smoothly. As we leave many pandemic-era restrictions behind, CNCDA will continue to provide the same insights and guidance we have over these tumultuous last two years. Thank you for your continued support for our association; our dealers make it all possible.