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California dealerships find themselves up against regulatory and business practice challenges more often these days. We cover the latest regulatory changes and Compliance Hotline calls from KPA’s Finance and Insurance (F&I) solutions. Check out the latest articles.

A Refresher on Tire Chain Disclosure Requirements

The tire chain disclosure requirement is confusing and frustrating, so we're taking some time to cover the more common missteps that occur during a disclosure.
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tire repairer checking the tire integrity

Form 8300 Cash Reporting - A Refresher

Recently, we heard from several dealers that they have been tagged by the IRS for audits on Form 8300 compliance. While most of you know about the IRS/FinCEN Form 8300, we're covering a quick refresher.
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Quoting Payment Ranges (And Why It Is Not A Good Practice)

What are your desking practices? They can differ widely throughout the industry but usually include quoting payments. Let's break down quoting ranges and why it isn't a best practice.
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Miscellaneous Military Matters Revisited

With Memorial Day around the corner and thinking about our troops, we're answering some common Hotline questions we receive about active-duty and non-resident military members.
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What’s Hot on the Hotline? Total Recall(s)

We're covering the Hotline's most frequently asked questions about sales and recalls.
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row of cars

DMV and DHS Alerts—Tax Rate Changes and REAL ID Extension

The Department of Homeland Security and the California DMV has made some recent changes to tax rates and REAL ID enforcement that will impact your dealership.
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DMV Alerts — Updates

The DMV issued updated guidance clarifying online sales and off-site deliveries of vehicles.
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Sales Tax Exemption Myths Revisited

Tax season seems to bring an uptick in Hotline calls about customers with different sales tax exemptions. Let's dispel some of the more common sales tax exemption myths that we regularly come across.
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car dealership

Revisiting Best Practices to Avoid Prior Undisclosed Accident Damage Claims

It's time to battle an age-old foe in the industry: customer complaints regarding purported undisclosed prior accident damage. How can we prevent this from happening?
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Disclosing Negative and Retained Equity on 553

A customer has a trade-in but they want to retain some equity from the trade. How do you disclose the arrangement and negative trade equity on the contract?
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car dealership interior

What’s Hot on the Hotline?—Non-Franchise Dealers Attempting to Purchase New Vehicles

What do you do when another dealer (who doesn't have your franchise) wants to purchase a new vehicle from you and insists they don't have to pay sales tax?
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New Laws and Regulations 2021

New California laws and regulations that may impact dealer operations in 2021.
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What's Hot on the Hotline? 10-Day Right to Cancel

We review a dealer's cancellation rights and provides information on what can be done after the 10-day rescission period has expired.
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parking lot filled with cars

Safeguarding Vehicle Inventory

When we're stressed we make simple mistakes. Robert Ebin reminds us of the most common mistakes and some best practices for safeguarding your vehicles.
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DMV Alert Updates

We've rounded up the latest changes from the California DMV that you need to know.
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What's Hot on the Hotline? Taking Vehicles In On Trade

The Hotline has seen an uptick in calls about trade-in vehicles. We've pulled together a review of best practices of trade-ins.
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car salesperson handing over keys

New v. Used—The Age-Old Conundrum Revisited

"Is this a new or used vehicle?" A simple question with a sometimes not so simple answer that could have dire consequences.
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Update on FTC Action Against Arizona and New Mexico Auto Group

An FTC complaint we covered a few years ago has recently settled. We're reviewing what happened, the settlement, and lessons learned for your dealership.
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Demonstrator FAQs

We're reviewing the most frequently asked questions about demo vehicles, everything from when a vehicle is placed into demonstrator service, and then taken out and offered for sale.
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What's Hot on the Hotline? Advertising Tips

A couple months ago, we covered the FTC's action against a marketing firm's advertising tactics. They've back in the news again, so we've rounded up 10 tips you need to keep your ads compliant.
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What’s Hot on the Hotline? – Supplemental Price Stickers

With an ever-changing landscape, we're revisiting the topic of supplemental price sticker best practices, advertising issues, and their use with used vehicles.
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car dealership

California Orders Closures, Again

Governor Newsom recently ordered the closure of certain businesses throughout California, are dealers affected?
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Driver’s License Extensions

Throughout the COVID-19 pandemic, we've consistently received questions about driver's licenses, specifically extensions to license expiration dates and vehicle delivery. We're answering all of those questions here.
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Revisiting the 7,500 Mile Rule

As dealers try to find creative ways to increase inventory levels, we've started to see an increase in questions about the 7,500 Mile Rule. So, what is it? Why should you care?
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Another FTC Crackdown on Automotive Ads

The FTC has been taking legal action against COVID-19-related advertising schemes, including auto dealers and their ad firms. A recent case provides some key takeaways you need to know.
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What's Hot on the Hotline? Sales Tax Misconceptions

The Hotline has been getting several sales tax questions, so we're diving into some misconceptions that have come up during these calls.
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Self Inspection Software

Common Issues with DMS Programming

After countless audits and deal jacket reviews, we always see the same mistakes. I'm breaking down the top DMS programming errors and dealership oversights from the last few years.
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tire repairer checking the tire integrity

The FTC Is at It Again – $1.5 Million Settlement With Auto Dealer

Despite a global pandemic, the Federal Trade Commission does not appear to be slowing down. It recently announced a $1.5 million settlement with a dealership and its general manager. We'll breakdown the case and lessons learned.
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close up of cars in a row

COVID-19 Legal Updates for Vehicle Sales in California

We broadly cover the DMV’s recent memorandum regarding online sales and remote deliveries as well as the status of in-person sales at dealerships in California.
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What's Hot on the Hotline? Autobrokers and Salesperson Licenses

As dealers respond to the changing regulations during this COVID-19 crisis, we can't forget other compliance issues that may seem minor in comparison. Check out our FAQs on autobrokers and salesperson licenses.
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DMV Alert - DMV Proposes Changes to the 18-Month Rule

There's an open comment period for a proposed DMV rule amendment to the 18-Month Rule regarding record retention.
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What's Hot on the Hotline? Use of Dealer Plates for Test Drives

With various local orders to stay home, dealers have become increasingly curious about the prospect of salesperson-less test drives. This article discusses the laws and regulations surrounding this concept.
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automotive test drive

Bay Area Counties Announce New Coronavirus Stay-At-Home Rules to Allow for Online Vehicle Sales

On March 31, 2020, 6 counties and 1 city announced stricter stay home orders but the new language allows for the online sales of vehicles.
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hands typing on laptop

Shelter In Place—The New Normal, For Now

With all these local and state-wide orders being issued, we wanted to briefly remind you of them, how they fit with each other, and what they mean for dealerships here in California.
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microscopic caronavirus image

We’re Washing Our Hands…Now What? An Opinion.

As the nation tries to control the spread of this global pandemic, we need to remember that we are in this for each other.
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What’s Hot on the Hotline? A Rewind to Recalls

Here are the not-so-straightforward answers to the most prevalent questions we’ve received on the legal hotline about recalls.
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man inspecting standing and inspecting the undercarriage of car in a service dock

ALERT-Department of Defense Amends MLA Interpretation Affecting GAP

Effective February 28, 2020, the Department of Defense issued an amendment to its Interpretive Rule for the Military Lending Act. What does this mean for you?
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The Fee That Keeps on Rolling

The California Tire Fee seems straightforward but is more often mishandled. We have a quick review of the fee and how it should be charged correctly.
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tire repairer checking the tire integrity

What's Hot on the Hotline? Credit Card Fraud Alert

We’ve received several calls on the hotline informing us of a recent scam involving credit cards that dealers should aware of. We have some best practices to combat it.
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business people shaking hands

Registration: Include Smog Certifications

By Our Partners At Vitu The California Bureau of Automotive Repair reported that many title and registration applications they come across are improperly keying in a “Y” to bypass the smog requirement. Please note that the BAR receives a report of each vehicle that has cleared DMV without a smog test certification and are taking […]
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BAR Sets the Table for 2020: Fines and Citations

The Bureau of Automotive Repair (BAR) has set the table for this new year: they want to go after repair facilities for instances of misbehavior and egregious conduct. In 2018 and 2019, the BAR was reeling after local news stations in the San Francisco Bay Area shed light on their heavily backlogged workload. Specifically, these […]
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stack of one hundred dollars notes

New Year, New You (Part 2)

By Hao Nguyen and Robert Ebin  In our second installment for 2020, we’re continuing where we left off and covering the other top three issues we received on the legal hotline in 2019. If you missed the first three topics, check them out here. Here, we will discuss the topics of Contract Cancellation Option Agreements, credit […]
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KPA F&I

2020 – New Year, New You (Or Dealership)

Let’s make 2020 an exception and focus on compliance at your dealership. We've collected the most prevalent calls we received on hotline over the last year and distilled them into a short briefs and action items.
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car dealership

DMV Alerts

Effective January 1, 2020, the Department of Motor Vehicles (DMV) has made changes to three existing processes that you need to be aware of.
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What To Do About Due Bills

If someone were to ask you what the most important documents were in a deal jacket (aside from the obvious answer of “all of them”), a Due Bill would most likely not make the top of your list. Although a seemingly innocuous document that is used to document outstanding obligations related to the sale of […]
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piggy bank with currency graphic

The ADA and Website Accessibility

Rachelle Taylor Golden, an attorney with Hatmaker Law Group, provides tips on how to make your website accessible under the American Disabilities Act.
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DMV Alert: Fee Increases

The Department of Motor Vehicles issued a Vehicle Industry News (VIN) memo showing increases in various fees based on the Consumer Price Index. Below is a chart highlighting the fee increases, which are effective January 1, 2020.
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parking lot filled with cars

Battery Fee Law Gets Attention, Enforcement from DTSC

When the Lead-Acid Battery Recycling Act (the Act) came into effect in April of 2017 with the passage of Assembly Bill 2153 (2016), we wrote about it extensively in our laws publication that was delivered to your inbox (or mailbox) at the beginning of 2017. Shortly before its effective date, we wrote about the topic […]
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auto repair shop

Putting Your Money Where your Trash Is: California Repair Facilities Pay Up for Hazardous Waste Disposal Violations

Regulators across California continue their campaigns for stricter enforcement of environmental regulations. In my time working with car dealerships to stay ahead of the regulators, there’s one area that always comes back to haunt me again and again – dealing with hazardous waste. This is an area where it always feels a bit like I’m […]
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proper waste disposal
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