Auto Notes -- August 2012

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In This Issue:

Government Audits, No 100% Mark Up Restriction; Manufacturer Audit Checkbacks; Is That Covered? Costs of Government Investigations; and Property Tax Reassessment Season Heats Up

Excerpt from Government Audits, No 100% Mark Up Restriction:

Numerous state agencies watch over dealerships, including PennDOT, Banking, the Dealer Board and the State Police. While these various agencies have their issues to watch out for when auditing or reviewing dealership activities, one of the more unfair reviews was to ensure a dealership was not marking up service contracts, GAP products and other aftermarket products more than 100% in financing situations. The law came on the heels of abusive home financing practices occurring in the early 2000s. It was believed that abusive practices in the home financing world were also occurring in the vehicle financing arena. The mark up restriction was put in place to limit the perceived abuses that were occurring. However, in early 2012 the law was revised (thanks to the efforts of PAA) and 100% mark up restriction was eliminated.

Please see full issue below for more information.

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