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COLONIAL CHRYSLER JEEP DODGE-RAM 24 Coolidge Street (Rte. 62) Hudson, MA. 01749 Phone Number: 978-568-8000 FAX Number: 978-562-1213
COLONIAL FORD OF MARLBOROUGH 428 Maple Street Marlborough, MA. 01752 Phone Number: 888-460-1125 FAX Number: 508-460-3464
COLONIAL SOUTH CHRYSLER JEEP DODGE-RAM 42 State Road (Rte. 6) Dartmouth, MA. 02747 Phone Number: 508-984-1900 FAX Number: 508-996-5801
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BMW of Stratham 71 Portsmouth Avenue Stratham, NH 03885 PH: 603-772-0000 FAX: 603-772-9436 bmwofstratham.com
New Country BMW 1 Weston Park Ave. Hartford, CT 06120 PH: 860-240-7881 FAX: 860-240-7873 newcountrybmw.com
BMW of Warwick 1515 Bald Hill Rd. Warwick, RI 02886 PH: 401-821-1510 FAX: 401-823-0530 bmwofwarwick.com
Tulley BMW of Nashua 147 Daniel Webster Hwy Nashua NH 03060 PH: 603-888-5050 FAX: 603-888-8427 tulleybmw.com
©2020 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks. 4 November 2020
New England Automotive Report
CONTENTS
November 2020 • Volume 18, No. 11
DEPARTMENTS VICE PRESIDENT’S MESSAGE by Kevin Gallerani 6 | All Hands on Deck!
EXECUTIVE DIRECTOR’S MESSAGE by Evangelos “Lucky” Papageorg
10 | Why a Final Bill?
LOCAL NEWS
14 | 2020 AASP/MA
Golf Outing Highlights
VENDOR AFFINITY PROGRAM MEMBER SPOTLIGHT 20 | Colours, Inc. by Alana Bonillo
LEGAL PERSPECTIVE
32 | When Does Storage Stop and Repair Begin?
FEATURES
ALSO THIS ISSUE
26 | COVER STORY by Joel Gausten
by James A. Castleman, Esq.
28 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS 40 | SHOP FOR SALE
ADVERTISERS’ INDEX Accudraft Paint Booths ................................OBC Audi Group ....................................................7 Balise Wholesale ............................................11 Best Chevrolet ................................................21 BMW Group............................................................4 BMW/Mini of Warwick....................................12 Boch Chevrolet ..........................................10, 39 Boch Hyundai ..........................................34, 20 Collision Supplies ..........................................27
LABOR RATE: Facts, Fiction and the Future: Part One
Ford Group....................................................38
Nissan Group ................................................24
Genesis of Norwood........................................10
PPG................................................................3
Honda Group ................................................13
Quirk Wholesale Parts ....................................25
Hyundai Group ........................................20, 39
Reliable Automotive Equipment ..................22-23
Ira Subaru ....................................................37
Sarat Ford Lincoln ..........................................32
Ira Toyota of Danvers......................................36
Sherwin Williams ..........................................29
Kelly Automotive Group ................................IBC
Spanesi ........................................................30
Kia Group ....................................................20
Subaru Group ................................................31
Linder’s, Inc. ................................................33
Toyota Group ................................................34
Long Automotive Group ..................................18
USI North America ........................................35
Mazda Group ..................................................8
Volvo Group ..................................................11
Colonial Auto Group ....................................IFC
McGovern Chrysler Jeep Dodge Ram ..................9
VW Group ....................................................42
Empire Auto Parts ..........................................41
Mopar Group ................................................19
Wellesley Toyota/Scion ..................................39
FinishMaster ................................................38
Network 1 Solutions ........................................9
Wheel Collision Center....................................41
New England Automotive Report November 2020 5
VICE PRESIDENT’S MESSAGE
All Hands on Deck! KEVIN GALLERANI
We thank those members who have taken the time to organize these meetings and help promote our need for reform at the ADALB, and we strongly encourage any members who’d like to host similar meetings at their shops to get in touch with our executive director, Lucky Papageorg, or anyone on our Board of Directors. I know this has been a difficult and time-consuming year for all of us, but it is critical that we stay focused on important matters at the state level to ensure that our issues and concerns – especially those on behalf of our consumers – are always heard and represented. Please do all you can to support Senate Bill 182 and our goal of effecting real change at the ADALB. And if you’re not currently a member of AASP/MA, please join us today! In other news, this month’s issue includes the first in a series of feature articles that aim to take a deep dive into the Labor Rate issue here in Massachusetts. The goal of this series is to offer true figures and perspectives on what repairers are facing in terms of average ROs and other matters. These articles will give our members valid information to counteract some of the myths and misunderstandings out in the field and provide a meaningful overview of where we really stand in the marketplace. Please check them out and use what is discussed to your advantage.
It doesn’t always seem this way, but Massachusetts actually has some very strong regulations in place when it comes to negotiations between shops and insurers. In fact, we’re one of the few states out there with a mechanism like the Auto Damage Appraiser Licensing Board (ADALB) to address issues that arise during the negotiation and claims-handling processes. Unfortunately, the ADALB has proven to be ineffective for years in both providing impartial enforcement of these regulations and hearing complaints in a timely manner. AASP/MA is working hard to change that. Senate Bill 182 aims to move the ADALB from the Division of Insurance to the Division of Professional Licensure. Additionally, the bill seeks to expand the size of the Board by two members, both appointed by the Attorney General, and replace the current chairman, appointed by the Massachusetts Commissioner of Insurance, with one appointed by the Commissioner of the Division of Professional Licensure. This would go a long way in bringing balance to the Board, which currently has its chairman, legal counsel and secretary all employed by the Division of Insurance. By revising the ADALB in the ways specified in the bill, we hope to see more effectiveness in the Board’s ability to deal with issues that affect consumers and collision repairers and stronger enforcement of the regulations already in place in the Commonwealth. For the past several weeks, AASP/MA members have been holding meetings with legislators in their markets to get them familiar with the bill and urge their support. N
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PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
AASP/MA VICE PRESIDENT KEVIN GALLERANI is vice president of Cape Auto Collision Center in Plymouth, MA. He can be reached at (508) 747-0316 or kevin@capeautobody.com G
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AUT M TIVE AASP/MA EXECUTIVE COMMITTEE
STAFF PUBLISHER
GRAPHIC DESIGNER
Thomas Greco - thomas@grecopublishing.com
Lisa M. Cuthbert - lisa@grecopublishing.com
SALES DIRECTOR
EDITORIAL/CREATIVE COORDINATOR
Alicia Figurelli - alicia@grecopublishing.com
Alana Bonillo - alana@grecopublishing.com
EDITORIAL DIRECTOR
PRODUCTION
Joel Gausten - joel@grecopublishing.com
Donna Greco - donna@grecopublishing.com
TREASURER Matthew Ciaschini IMMEDIATE PAST PRESIDENT Paul Hendricks LEGISLATIVE/ADALB COMMITTEE CHAIRMAN Tom Ricci
PRESIDENT Molly Brodeur VICE PRESIDENT Kevin Gallerani SECRETARY Gary Cloutier
AASP/MA STATEWIDE DIRECTORS PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963 www.grecopublishing.com
COLLISION DIRECTOR Rob DelGallo
AT-LARGE DIRECTOR Adam Ioakim
AASP/MA DIRECTORS Ray Belsito
Kevin Kyes
Rick Fleming
Frank Patterson
Joshua Fuller
Mike Penacho
Andrew Potter Dana Snowdale
Bill Spellane Brian Stone
AASP/MA ADMINISTRATIVE OFFICE -New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright © 2020 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com
WWW.AASPMA.ORG 6 November 2020
New England Automotive Report
Evangelos “Lucky” Papageorg: AASP/MA Executive Director
Alana Bonillo: AASP/MA Administrative Assistant P.O. Box 212 Marlborough, MA 01752 617-574-0741
Audi dealers strive to make you an Audi Genuine Parts fan •
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Helping you do business is our business. Order Audi Genuine Parts from these select dealers. Audi Natick 549 Worcester Street Natick, MA 01760 www.bernardiaudi.com 800.247.3033 Fax: 508.651.6841
Hoffman Audi 700 Connecticut Blvd East Hartford, CT 06108 860.282.0191 Fax: 860.290.6355 www.hoffmanauto.com
Audi Peabody 252 Andover Street Peabody, MA 01960 800.774.8411 Parts Direct: 978.605.2182 email: pwalke@iramotorgroup.com www.audipeabody.com
Mattie Audi 80 William S. Canning Blvd. Fall River, MA 02721 800.678.0914 Fax: 508.730.1283 www.mattieaudi.com
Superior service starts with superior parts. Rely on what Mazda drivers already know-Genuine Mazda parts extend a car's life. Designed specifically for Mazda vehicles Get the right part the first time We're an accurate, trusted resource as close as your phone Give us the opportunity to serve you
Contact these Mazda dealers for all your parts needs: Mastria Mazda 1545 New State Highway Route 44 Raynham, MA 02767 Phone: 877-272-8876 Fax: 508-802-4074 wholesale@mastria.com
8 November 2020
Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475 Balise Mazda 635 Riverdale St. West Springfield, MA 01089 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for Eleven Brands!
New England Automotive Report
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CALL US: 888-918-0737 EMAIL US: sales@network1llc.com
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THE FENDER PAINT STAND V>˜ LÂœÂœĂƒĂŒ ĂžÂœĂ•Ă€ ÂŤĂ€ÂœwĂŒĂƒ LĂž ˆ˜VĂ€i>ĂƒÂˆÂ˜} ĂŒÂ…i ivwVˆi˜VĂž Âœv your collision repairs and painting process.
THE LIFT KING HEAVY DUTY PACKAGE allows you to remove and install Semi œœ`Ăƒ Ăƒ>viÂ?Ăž >˜` ivwVˆiÂ˜ĂŒÂ?Ăž ĂœÂˆĂŒÂ… one operator, with additional tilting mobility for body repair and painting. *DOLLIES ALSO AVAILABLE!
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Call Us For All Your MOPAR Needs or visit us on the web: www.mcgoverncjdrofnewton.com
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Call us and get the right MOPAR parts the FIRST TIME! New England Automotive Report November 2020 9
EXECUTIVE DIRECTOR’S MESSAGE
Why a Final Bill? EVANGELOS “LUCKY” PAPAGEORG
In this issue, AASP/MA embarks on a series of articles regarding the dissemination of information and statistics. We will focus on information that has been distributed in the past and whether it is based on fact, fiction or possibly a combination of both. As individuals, we must be ever vigilant. It is important that we question the validity and source of anything we are provided. Who does the information truly benefit? The reader? The preparer? Perhaps a third party? If we blindly accept information put before us without question, we are doomed to be forever manipulated. In our industry, we are constantly being barraged by information regarding repair procedures, repair requirements and recommendations. We are constantly being told what we need in relation to tools, certifications and licenses – all of which cost hundreds if not thousands of dollars. We must also deal with a third party inserting themselves into our repair shops and attempting to tell us what we can or cannot do without regard to the liability we take on as repairers.
They try to tell us what they will pay for and what they do not pay for – again, with no regard for the liability incurred. Keep in mind
If you are in the habit of giving the customer a copy of the final version of the insurance “estimate,” then you are committing several blunders and potentially opening yourself up to accusations of fraudulent actions. that all the while, they do not forbid you from charging the vehicle owner unless you have a “contract” or “agreement” that says you cannot. Abiding with these agreements is what leads to the creation of the manipulated misinformation they subsequently collect. It is this foundation of contrived and misleading information in “statistical” reports, which is used to back up
and create additional faulty data to paint a very misleading picture. It becomes a never-ending circle, which together we must put to an end. Today’s practices create a picture that gets sold time after time after time. It becomes a selffulfilling prophecy where insurers attempt to set the “prevailing” MARKET RATE based on the reimbursement rate insurers are willing to pay. The prophecy has mired this industry – and in particular Massachusetts, which is at the very bottom of the labor reimbursement ladder. As we progress through this series of articles, we will be taking a hard look at the difference between true raw data facts and those created to serve a purpose. We will look at terminology that is used to baffle and mislead the less informed. We will debunk the statement, “If I said it is so and have put it in writing, then it must be so.” While looking at final bills and repair orders, as well as clarifying the regulations which govern the repair process, we will be able to show the current rate at which insureds are reimbursed as artificially suppressed and
KEEP IT GENUINE INSIST ON GENUINE GM PARTS
Boch Chevrolet 381 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062 Parts Line: 781-762-9210 Toll Free: 800-559-9210 bchwholesale@boch.com
Contact Boch Chevrolet for your GM Parts needs!
10 November 2020
New England Automotive Report
QUALITY STARTS WITH GENUINE GENESIS PARTS AND ACCESSORIES. Genesis of Norwood 391 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062 Parts Line: 781-762-9210 Toll Free: 800-559-9210 bchwholesale@boch.com
completely unrealistic. I am confident that we will, in the end, be able to prove that “figures lie and liars figure.” Why a final bill? The reason final bills are critical is that they should be a clear indication of every operation you performed on a vehicle, what parts were involved and the cost associated with them. It must be a blueprint! Just like blueprints to a building, anyone should be able to refer to the repair blueprint years later and understand what was done to the vehicle and what you charged for or included in your final repair figure. This is critical! An “estimate” is just that – an estimate, an educated guess. If the estimate is used as the foundation for any statistical report and/or “trend”setting article published anywhere, it is already WRONG! When the estimates are being provided for these studies by the information/estimating providers, they reflect bogus information. As an example, when you have negotiated a higher reimbursement rate for a repair procedure, the insurer does not change the “matrix” at the bottom. The dollar difference is included as a line item concession in the body of their estimate. This is no accident! It is the foundation of the lie that shops are accepting their original reimbursement rate. Those not involved in our industry on a regular basis DO NOT know where to look for the REAL rate. This is just one example.
Quality Repairs Start With Volvo Genuine Parts. For over eight decades, the Volvo name has been synonymous with unmatched quality and performance. that legendary Volvo quality starts with Volvo Genuine Parts.
Rely on Volvo Genuine parts to get the right fit, at the right price, right now. Please contact the following dealers for your Volvo parts needs: Prime Volvo Cars 1030 Hingham Street Rockland, MA 02370 Parts Direct: 781-927-3520 Fax: 781-927-3592 www.volvocarssouthshore.com
Volvo of Wellesley 962 Worcester Street Wellesley, MA 02482 Parts Direct: 800-247-3033 Fax: 508-651-1220 www.volvoofwellesley.com
www.volvogroup.com
Continued on page 37
WHOLESALE PARTS
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GM PARTS .................Press 2 FORD.........................Press 5
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KIA ............................Press *
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LEXUS........................Press # MAZDA .....................Press 6 NISSAN......................Press 4 SUBARU ....................Press 8 TOYOTA .....................Press 1 VOLKSWAGEN ...........Press 9
New England Automotive Report November 2020 11
ORIGINAL MINI PARTS.
MINI of Warwick Maintains an Infinite Inventory of Original MINI Parts. • Experienced and dedicated MINI Parts Staff • Extensive inventory of collision parts and components
• Fast and free delivery • Fax or email will speed your order fulfillment
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1515A Bald Hill Road Warwick, RI 02886 Wholesale Direct at 401-824-2313 Fax 401-824-2251 janine.brown@penskeautomotive.com MINIOFWARWICK.COM Hours: M-F: 8:00-5:00 Sat: 8:00-3:00 © 2020 MINI USA, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.
WE SUPPORT YOUR BUSINESS WITH ORIGINAL BMW REPLACEMENT PARTS. · Our BMW Parts Professionals know BMW vehicles better than anyone else.
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· Fax or emailing your order will speed processing and delivery to your location. © 2020 BMW of North America, LLC. The BMW name, model names and logo are registered trademarks.
12 November 2020
New England Automotive Report
It Takes Genuine Honda Collision Repair Parts To Achieve a Genuine Honda Fit. Honda collision repair parts are engineered and manufactured to Honda standards. In the collision-repair business, time is money, and you can’t waste time on parts that almost fit properly. Use Genuine Honda replacement parts. Your reputation depends on it. For Genuine Honda parts, contact these Authorized Honda dealers. Bernardi Honda 960 Worcester Road Natick, MA 01760 Parts Direct: 800-247-3033 FAX: 508-651-1220 www.bernardihonda.com
Kelly Honda 540 Lynnway Rt. 1A Lynn, MA 01905 Parts Direct: 800-779-7466 FAX: 781-595-2898 e-mail: mpsomosjr@kellyauto.com
Honda of Enfield 20 Palomba Drive Enfield, CT 06082 Toll Free: 800-222-6632 FAX: 860-253-5419 www.liahondaofenfield.com
Honda North 382 Newbury Street Danvers, MA 01923 Toll Free: 800-882-9797 FAX: 978-774-9483 e-mail: eadams@iclautos.com www.hondanorth.com
Schaller Honda 1 Veterans Drive New Britain, CT 06051 Toll Free: 800-382-4525 Direct: 860-826-2080 FAX: 860-826-2083 e-mail: jkiniry@schallerauto.com www.schallerauto.com
Lundgren Honda of Auburn 525 Washington Street Auburn, MA 01501 Toll Free: 800-777-2044 FAX: 508-721-0872 e-mail:pmccarthy@lhonda.com www.lhonda.com
Balise Honda 400 Riverdale St. West Springfield, MA 01089 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for Eleven Brands!
Balise Honda of West Warwick 509 Quaker Lane West Warwick, RI 02893 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for Eleven Brands!
Lia Honda of Northampton 293 King Street Northampton, MA 01060 Toll Free: 800-369-7889 Direct: 1-413-587-2900 FAX: 1-413-585-0502 www.liahondanorthampton.com
New England Automotive Report November 2020 13
[LOCAL] NEWS
2020 AASP/MA GOLF September OUTING 16, 2020
Highlights
PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
Blackstone National Golf Club, Sutton, MA
Photos by Joel Gausten
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New England Automotive Report
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THE PLAYERS (All names are listed L-R)
1: Alan Dunn, Scott MacDonald, Matt Peloquin, Sean VanDale 2: Steve Donahue, John Crowton, Fred Schube, Ken Parker 3: Mary Stoico, Christina Alvarez, John Bostek, Josh Fuller 4: Tom Walling, Seth Roy, Kevin Parsons, Drew Heilman 5: Dennis Seaver, Chris Michalowski, Scott Randall, Tom Carrigan 6: William Johnson, David Johnson, Robert Johnson, Guy Glodis 7: Rick Starbard, Gary Cloutier, Kent Boucher, Leonardo Rodriguez 8: Gary North, Chris Morin, Chris Morin Jr., Eric Lindlau 9: David Gallerani, Steve Nigro, Ron Lanoue, Kevin Gallerani 10: Peter Ervay, Michael Levy, Tom Ricci
11: Kyle Doyon, CJ Timmons, Eddie Mariano, Brian Lightbown 12: Chris Bird, Jack Lamborghini, John Studer, Mike Cox 13: Mike Walker, Garrett Mann, Matt Munsell 14: Bill Spellane, George Baribeault, Nick Brochu, Rusty Deskus 15: Wiley Harper, Greg Piekarski, Eric Carlson, Craig Crociati 16: Steve Creanza, Patrick Longhi, Steve Litwin 17: Greg Santos, Sean Wilmont, Jeremy Ostrout, William Karpovich 18: John Marceau, Tom Higgins, Bino DosSantos, Chris Sachs 19: Brian Stone, Derek Weaver, Michael Waltrip, Bob Maberry 20: Bob Rainville, Mike Rainville, Matt Ciaschini, Dennis Yarrows 21: Perry McDonnell, Stephen Haney, James Gray, Joe Leahy
CONGRATULATIONS TO THIS YEAR’S WINNERS!
First Place Team: Wiley Harper, Greg Perkarski, Eric Carlson, Craig Crociati
Second Place Team: Bob Rainville, Mike Rainville, Matt Ciaschini, Dennis Yarrows
Third Place Team: Rick Starbard, Gary Cloutier, Kent Boucher, Leonardo Rodriguez
Closest-to-the-Pin Winner: Leonardo Rodriguez Longest Drive Winner: Garrett Mann
New England Automotive Report November 2020 15
AASP/MA THANKS ALL THE SPONSORS OF THIS YEAR’S TOURNAMENT! Tournament Sponsor: Albert Kemperle Hole-in-One Sponsor Quirk Auto Parts
Team Prize Sponsor Long Cadillac
Closest-to-the-Pin Sponsor Fuller Auto Body
Insulated Cooler Bag Sponsor Nadine Nesbitt, WAITT (We’re All in This Together)
Longest Drive Sponsor Baystate Business Brokers Raffle Prize Sponsor EMM Specialties/Colad
16 November 2020
New England Automotive Report
Breakfast Sponsors Don Kennett, Inc. Hampshire Towing
Closest-to-the-Pin Winner Leonardo Rodriguez (left) and Longest Drive Winner Garrett Mann.
AASP/MA President Molly Brodeur and Executive Director Lucky Papageorg.
Special thanks to the following for contributing items as raffle prizes and giveaways: Peter Ervay of BASF - two Bluetooth speakers; CJ Timmons of DB National Warehouse Supply, Inc. - 10 Yeti mugs and a $100 gift certificate to CafĂŠ Espadrille; Quirk Auto Parts camping chairs, hats and hot/cold traveling mugs; and Chris Bird of Advantage Parts Solutions - an umbrella and packs of golf tees. AASP/MA volunteer Joshua Goodman oversaw the Hole-in-One all day. New England Automotive Report November 2020 17
Internet Based National Parts Locator Over $2 Million in Inventory 40,000 sq/ft. Warehouse Fleet of 19 Wholesale Delivery Trucks GPS-Equipped Experienced GM- and ASE-Certified Sales Staff
Snap-On Parts Catalog Competitive Discounts Liberal No-Hassle Return Policy GM Bump the Competition Conquest Program OE CollisionLink Dealer CCC One Vendor
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PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
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New England Automotive Report
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New England Automotive Report November 2020 19
[VENDOR AFFINITY PROGRAM MEMBER] SPOTLIGHT By Alana Bonillo
Colours, Inc. There’s more than just paint to Colours, Inc. The PPG Platinum distributor has built its success and stellar reputation by offering value that goes above and beyond what many would expect from a vendor in its field. “Our specialty is that we sell automotive paint and all supplies and equipment that go with it, but we like to focus on the customer and what we can do to provide extra value,” says Colours CFO Ali Mahalak. On the technology side, the company has eight certified tech representatives on staff. These professionals are available to visit
Colours, Inc.’s corporate offices and warehouse in Hanover Township, PA
shops and assist them with paint matching, painter training and more. When new customers come on board, Colours is able to place one of its technicians at the shop for however long is needed to make sure that facility is comfortable with the new products it is using. Mahalak’s father, Thomas “Tim” Evans, got the business running in 1986. An 0 Indie race car driver at the time, he was presented with a distribution opportunity in Wilkes-Barre, PA by PPG, a sponsor of the Indie series. Evans took the opportunity and has since grown the company substantially over the past
Page 1
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20 November 2020
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New England Automotive Report
Contact these select dealers for assistance and delivery of your Kia Genuine Parts. Bald Hill Kia 1021 Bald Hill Road Warwick, RI 02886 Parts Direct: (800) 822-3015 www.baldhillkia.com Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: (877) 707-8475
Balise KIA 603 Riverdale St. West Springfield, MA 01089 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for Eleven Brands!
30-plus years. Currently, Colours boasts 37 locations in eight states. Colours entered the Massachusetts market last November by acquiring Montague-Brown Co. Despite COVID-19 restrictions, the company’s three locations (Quincy, Plymouth, Fall River) have retained most of their customers through the acquisition and expanded their business beyond expectations. Now that some of the restrictions have been relieved a bit, Colours has been able to follow up with customers in person and make potential new ones while showing them what has made its services and expertise so successful over the past three decades. Eager to work with and interact with the Massachusetts auto body community, Colours recently came on board with AASP/MA as a Vendor Affinity Program (VAP) Gold Sponsor. Additionally, the Colours foursome recently won the AASP/MA Golf Outing. Mahalak is pleased to be a part of helping the association achieve its goals on behalf of consumers and the collision repair industry. “We really find value in supporting our customers
Colours, Inc.’s Plymouth location
and building relationships. When the opportunity [to support AASP/MA] was presented to us, we knew it would help us build those relationships. The Massachusetts market has yet to see what Colours can do for them; we aren’t just a paint supplier. We want to help them run their shops well and efficiently, and we want to stand next to them as a partner rather than a vendor.” PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
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Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475
24 November 2020
New England Automotive Report
Balise Nissan of Warwick 1350 Post Rd. Warwick, RI 02888 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for Eleven Brands!
New England Automotive Report November 2020 25
Labor Rate :
[COVER] STORY By Joel Gausten
Facts, Fiction and the Future - Part One For decades now, the Massachusetts collision repair industry has been in desperate need of true reporting on where it stands in terms of Labor Rates based on legitimate, pro-competitive market data. In theory, gathering and sharing these figures should be a fairly straightforward process: Shops report what they charge for the services they provide, and the entity that compiled this information disseminates it to the industry. Unfortunately, things are rarely that simple when it comes to auto repair in the Commonwealth. Traditionally, a “Labor Rate” in Massachusetts and any other state where insurers utilize Direct Repair or referral programs has been dictated by those companies’ desire to keep their expenditures as low as possible. Facilities that align with insurers for the purpose of receiving steady work have made the business decision to do so. However, the concessions these shops often agree to make in relation to their charges and procedures are often mixed in with nonprogram or customer-pay rates. Then, carriers and other sources attempt to showcase the financial standing of a particular market. This results in a race to the bottom based on faulty numbers that reflect a watered-down version of reality, leaving shops that have made the appropriate investments in equipment and training to operate under the same reimbursement as the lowest-charging and least proactive facilities in their area. It’s time for order in the court, and AASP/MA is leading the way. For the past 18 months, the association has conducted its own Labor Rate Survey through National AutoBody Research (NABR), a third-party entity known for facilitating similar projects across the country. The endeavor’s goal has remained simple: Gather genuine posted door/retail Labor Rate information from shops based on their non-concessionary insurer and customerpay work. With Massachusetts currently operating at the lowest average Labor Rate in the country ($38.28, according to Mitchell’s 2018 Industry Trends Report), the need for figures outside of insurer influence has reached a critical level. Not surprisingly, the data gathered by the 360 Massachusetts shops that have completed the survey as of early October expose a huge disparity between what insurers state is the “prevailing rate” and what shops are charging without such outside interference and what customers are paying.
Of the survey data collected thus far by NABR, the overall average customer-pay Labor Rates in Massachusetts are $57 for body, $57 for refinish and $41 for paint and materials. Ninety-seven OEM-Certified Shops, defined by NABR as “any shop that reported in their survey having one or more OEM certification from any manufacturer,” reported average rates of $55 for body, $55 for refinish and $41 for paint and materials. Thirty-one Luxury OEM Certified Shops, defined as “any shop that has one or more certifications from a luxury brand (Audi, BMW, Mercedes, Porsche, Tesla, etc.),” reported $58 for body, $58 for refinish and $44 for paint and materials. Sixty-six Mass Market OEM Certified Shops, defined as “any shop that has one or more certifications from a mass market brand (Ford, GM, Fiat/Chrysler, Honda, Nissan, etc.”), reported $54 for body, $54 for refinish and $39 for paint and materials. (If a shop has both luxury and mass market certifications, it gets put in the Luxury category.) The 262 non-OEM certified shops in the state that took the survey reported average posted door/retail rates of $57 for body, $57 for refinish and $41 for paint and materials. In addition to the Labor Rate Survey, NABR offers BillableGenie, a program that features a searchable database of what repairers across the country report in regard to what procedures they are being paid for by insurers. As of this writing, the system boasts in excess of 7,000 repair and payment records nationwide. BillableGenie has served as another way for shops to combat an insurer’s insistence that it doesn’t compensate facilities for certain things done during the repair process. Bolstered by a constant push by AASP/MA (including hosting multiple member meetings on the survey from mid-2019 to early 2020), Massachusetts currently boasts the quickest NABR survey participation rate in the United States. “Massachusetts is probably the best single example at a statewide level of body shop responsiveness,” comments NABR President Sam Valenzuela. “The plan is to keep increasing the amount of Labor Rate information we are able to present based on shops’ ongoing participation. In terms of our data-gathering objectives, our clear goal is to show objective data that speaks for itself; the unaltered data will accentuate the chronic Labor Rate problems that have plagued body shops for years.” “I’m very impressed with the response of the shops in Massachusetts to our efforts,” adds NABR CEO Richard
Valenzuela. “I cannot overstress that what has happened here is clear evidence of what can happen across the country, and we’re not done. Kudos to the Massachusetts body shops for doing what no other group of shops have ever done quicker in moving the Labor Rates in their state.” That last sentence is certainly encouraging; both NABR and AASP/MA are quick to specify exactly what it means. Shops that are actively taking the Labor Rate Survey and utilizing BillableGenie have been able to repeatedly charge and recoup a higher rate of reimbursement from insurers and their posted Labor Rate from customers. While embracing NABR’s Labor Rate Survey and BillableGenie is a valuable weapon against misinformation, shops in Massachusetts should keep their eyes open and question the sources and validity of any information they receive about the Labor Rates in their areas – and who tells them what the rate should actually be. As a recent example, a September 21 story by Repairer Driven News (repairerdrivennews.com) explored complaints received by the Society of Collision Repair Specialists (SCRS) that insurers have been attempting to pass off benchmark reporting by CCC as an accurate representation of market Labor Rates. CCC put the mischaracterization to rest in an official statement it provided to the industry news website: CCC provides benchmark reports based on an aggregation of industry data collected from customers that use CCC’s collision estimating software and/or communicate electronic appraisals via CCC’s CCC ONE Workflow network. Reports are available within CCC ONE and
accessible to system users, including collision repair and insurance customers. CCC does not conduct Labor Rate surveys or report on prevailing street rates. (Emphasis added by NEAR.) The Repairer Driven News report adds that a Seattlebased shop owner contacted CCC with similar concerns in 2018. A CCC client services advisor provided the following response in early 2020: CCC does not provide Labor Rate surveys reports. CCC only provides insurers with claim-related data, and this data is not intended to be used for Labor Rate surveys. [Emphasis added by NEAR.] This is clearly stated on every report we provide that contains an aggregated average Labor Rate for insurance claims (only). Industry reporting provided by CCC is an aggregation of industry data collected from customers that use CCC Estimating collision estimating software and/or communicate electronic appraisals via CCC’s network, where data has been aggregated by certain geographic areas. According to AASP/MA Executive Director Evangelos “Lucky” Papageorg, another way that shops can push back against the tide is by using their shops’ final bills – not the final estimates provided by insurers – as a determining factor in the rates they charge. “There are shops that receive their second, third or final supplement from an insurer, circle the amount at the
Continued on page 40
New England Automotive Report November 2020 27
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New England Automotive Report November 2020 31
[LEGAL] PERSPECTIVE By James A. Castleman, Esq.
When Does Storage Stop and Repair Begin? There is no statute, regulation or Massachusetts legal case that limits when a collision repair shop can charge for storage of a vehicle in its possession. Also, except for vehicles that are involuntarily towed by order of the police or other government authority or towed because they are trespassing on private property, there is no law that limits how much a repair shop can charge for storage. All that is required is that the shop disclose what its storage policy is and how much it will charge, either by conspicuously posting that information in the shop or by disclosing it in writing to its customers prior to performing any repairs on a car. Of course, this does not mean that an insurer will willingly agree to pay for whatever a repair shop charges for storage, but carriers usually are required to pay for some of the amount. For cars that carry collision or comprehensive coverage, the standard Massachusetts Automobile Insurance Policy requires that if the car is in an accident or suffers a covered loss, then the owner must, “Do whatever is reasonable to protect the auto from further damage or loss. Where there is coverage provided by this policy, we will pay for any reasonable expenses incurred in doing this.” Generally, that means that the insured should have the vehicle towed from the scene of an accident, and the insured should store the
vehicle securely so that it does not suffer further damage. If the insured has collision or comprehensive insurance, then the insurer is required to pay a “reasonable” amount for this. In fact, under both first-party collision and comprehensive coverages, the policy acknowledges that, on top of paying for the cost of repair, “[The insurer] will also pay reasonable and necessary expenses for towing, recovery and storage of your auto.” Under general tort law principles for third-party losses, an insurer is usually required to pay the “reasonably foreseeable” expenses incurred by a claimant as the result of the insurer’s policyholder’s negligence – which certainly would include the reasonable costs of towing and storage of a damaged vehicle. For both first- and third-party claims, the insurer is required to pay for storage over and above what it pays for repairs and without considering the costs of storage in determining whether to declare a vehicle a total loss. Getting Paid for Storage in General Despite there being no law that limits when a repair shop can charge for storage, it is the policy of many (if not most) shops not to charge for storage of vehicles that they repair. It is not clear to me why this is the case. If the
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New England Automotive Report
shop is providing the service of storing a damaged vehicle, using valuable space in the shop or on its lot to store the vehicle, assuming the risk involved with storing someone else’s car and is paying a premium for garagekeeper’s liability insurance that factors in that risk, then why isn’t the shop charging for storage? Would it not be “reasonable” to charge for these items? Perhaps shops believe that since they hopefully will make a profit on the repair of a vehicle, they do not need to get paid more to store it before and after the repairs are being performed. Perhaps shops believe that they will scare away customers if they charge for vehicle storage. Perhaps they think that they shouldn’t bother trying to collect it because insurers will not pay it. Perhaps they think that since this is the way it has always been done, there is nothing that they can do about it. As long as shop owners think this way, nothing will be done about it. Yet, even if collision repair shops usually do not charge for storage,
shouldn’t there be some limits? Should they store a damaged vehicle for weeks on end while they wait for some insurer to decide whether there is coverage for the loss or if the vehicle should be totaled? Should a shop sit with a repaired vehicle for weeks on end after a repair is completed waiting to get paid for their work or waiting for their customer to pick up the vehicle? Notably, a repair shop obtains a possessory garagekeepers lien on vehicles that it repairs. That means that the shop is entitled to keep a repaired car until it gets paid and can sell it in order to collect its charges if it does not get paid. Yet, once a shop voluntarily lets a repaired vehicle leave its premises, the lien generally is extinguished. If a repair shop retains a repaired vehicle until it gets paid – again, which it is entitled to do – why should it not get paid for storing that repaired vehicle until it receives payment, particularly if it takes a lengthy period of time for some insurer to meet its obligation to pay for those repairs?
When Storage Is Charged and Is Paid by an Insurer Although it may be the general rule that repair shops do not charge for storage, there certainly are circumstances under which storage fees are charged and paid for. Clearly, if a vehicle is towed from the scene of an accident and stored by the tow carrier or in a storage facility, then storage is charged and is paid for by a covering insurer – as is required by the standard Massachusetts auto policy. If a vehicle is towed to a repair shop and is then declared a total loss, then the general rule is that storage fees will be charged and will be paid for by an insurer. If a collision repair shop owner also has a towing business and separate storage facility and tows a damaged vehicle to its separate facility, then insurers generally will pay for that storage (although some insurers in the past have tried not to) in addition to the cost of the tow. If all of this is the case, why shouldn’t an insurer pay the same storage charges to a repair shop that Continued on page 40
New England Automotive Report November 2020 33
WHY GENUINE PARTS? It’s the Right Thing to Do
You lose money when aftermarket parts don’t fit. Toyota Dealers are your best source for Genuine Toyota Parts. All it takes is one call. For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: IRA Toyota of Manchester 33 Auto Center Road Manchester, NH 03103 Toll Free: 800-828-6076 Direct: 603-657-2410 Fax: 603-657-2419
Wellesley Toyota 216 Worcester Street Wellesley, MA 02481 PH: 800-734-0006 Direct: 781-237-4042 FAX: 781-237-3481
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ToyotaPartsAndService.com 34 November 2020
New England Automotive Report
36 November 2020
New England Automotive Report
EXECUTIVE DIRECTOR’S MESSAGE Continued from page 11
For over 18 months with the assistance of National AutoBody Research (NABR), AASP/MA has been accumulating documentation of actual rates of reimbursement collected directly from insurers here in Massachusetts. Not only is NABR able to provide an “effective” (actual) rate calculation, but they have the documentation in the form of final bills and proof of payment as verification. That is the real raw data from which reports with real meaning should be and are created. These reports accurately depict what is really going on. This is the answer to “WHY A FINAL BILL?” If you are in the habit of giving the customer a copy of the final version of the insurance “estimate,” then you are committing several blunders and potentially opening yourself up to accusations of fraudulent actions. If you omit or overlook the smallest of procedures or parts – even a single bolt – you have committed a deceptive act and could be held liable. Although it is time-consuming, creating a final bill is the only way to protect yourself. The final bill must be an exact blueprint of the repair plan and procedures that you followed. It must list all the parts – nothing more, nothing less – that you have used and your associated charges. If you do this accurately, you will begin the process of documenting a true foundation for a valid study of our industry. Your final bill will also clearly show the charge for paint and materials and your market’s hourly Labor Rate in an easy-to-read and
understandable format. NOTHING WILL BE HIDDEN AS A CONCESSIONARY LINE ITEM. By doing so and collecting a payment reflective of that final bill, you will be able to establish a true “market” rate. This is the case whether you are performing insurance work or customer-paid work. A true market rate is not what was written on the original “guess-timate” by the insurer. A true market rate IS what a customer is willing to pay. It is also the higher reimbursement rate that you have negotiated with the insurer. It is that very MARKET RATE that insurers hide in their concession lines. As we progress through this series of articles, we will share some of the information collected thus far through NABR and some of the success stories of shops here in Massachusetts and across the country that have been getting a fair reimbursement for the work they perform and the liability they undertake. We will show you how, with just a little bit of knowledge, proof and effort on your part, you can transform your business and help save this great industry from ruin. Please join us and share your thoughts and experiences. The successes of many of our member shops will help others realize that they too can benefit from AASP/MA membership and involvement with NABR. I look forward to seeing this series of articles develop. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
MASSACHUSETTS
AASP/MA EXECUTIVE DIRECTOR EVANGELOS “LUCKY” PAPAGEORG can be reached at (617) 574-0741 or lucky@aaspma.org
New England Automotive Report November 2020 37
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© 2019, Ford Motor Company 38 November 2020
New England Automotive Report
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[COVER] STORY
[LEGAL] PERSPECTIVE
Continued from page 27
bottom and tell the customer, ‘This is what I did to your vehicle. Here is the ďŹ nal repair cost.’ The pratfall with that is that when the shops have been successful in negotiating a higher rate or more paint and materials, it’s not reected in that ďŹ nal supplement matrix because it’s hidden in a concession line. The Labor Rate Survey and BillableGenie take care of it because they show the actual eective rate.â€? As long as referral rates are thrown into the pile, estimating systems are being improperly used as market data sources and insurers send work to shops that have not made the proper investments necessary to adequately repair modern vehicles, the majority of Labor Rate information available in Massachusetts will remain questionable at best. Only an examination of nonprogram rates and a comparison of procedural charges in the Commonwealth to similar data collected by NABR in other states will show what honest, uncorrupted rates should be. As Sam Valenzuela says, “Customer pay is the single best measurement of a market rate. All that any other ďŹ gures do is perpetuate the insurers’ storyline.â€? Look for Part Two of this series in next month’s New England Automotive Report. AASP/MA’s Labor Rate Survey can be taken at nationalautobodyresearch.com. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
Continued from page 33
a vehicle has been towed to directly? Why should it make a dierence if a vehicle was stored at an independent or separate storage facility rather than at a repair shop? In fact, sometimes it could be more cost-eective for an insurer to do so, perhaps saving the cost of a second tow or the cost of additional substitute transportation charges. So, When Does Storage End and Repair Begin? If a repair shop is going to charge for storage, whether on a vehicle that it eventually fully repaired or on one on which repairs are begun before it is eventually declared a total loss, when does storage end and repair begin? The answer is not always clear. Insurers may argue that storage ends when its appraiser writes an appraisal that does not total the vehicle. But is that fair? Why should a shop stop charging for storage while it waits for the insurer’s appraisal to be received days or weeks down the road? Why should storage stop while supplements are being negotiated with the insurer’s appraiser? And what happens if repairs begin and the vehicle turns out to be a total loss when it is disassembled? Should storage charges ever have stopped for that vehicle? Personally, I do not see why it should have. On the other end of the issue, when does repair end and storage begin? If a vehicle repair is ďŹ nished and the car sits in a repair shop’s lot – or in the shop itself –
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shouldn’t the shop have the right to start getting paid for storage at some point? And if a repair shop exercises its right to protect itself from monetary loss by keeping a repaired vehicle until it receives direct payment of an appraisal or supplement from an insurer, shouldn’t the insurer be responsible for that post-repair storage? I think that it should. Conclusion As suggested in this article, in my opinion there are times that a collision repair shop should be able to charge for storage whether or not a vehicle is being repaired. And these times go well beyond what is too often accepted by the collision repair industry or paid for by insurers – or required by insurer referral shop contracts. In my opinion, storage charges for these additional times would be reasonable charges that insurers should be held responsible for paying. Yet, repair shops are never going to get paid for these additional charges unless they do something to try to get paid for them. It may mean a shop educating its customers as to what it is looking to get paid for storage. It may mean rethinking and changing how to handle and charge for storage, such as redefining when a shop is going to consider that storage is ending and repairs are beginning. It definitely will mean disclosing to the shop’s customers and their customers’ insurers (whether directly in writing or by conspicuously posting the information in the shop) what the shop’s new storage policy and charges will be. Insurers are not going to just roll over and pay these additional charges. But again, if you don’t try to get paid for them, then it will never happen. PROTECTING CONSUMERS AND THE COLLISION INDUSTRY
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Attorney James Castleman is a managing member of Paster, Rice & Castleman, LLC in Quincy, MA. He can be reached at (617) 472-3424 or at jcastleman@prclawoffice.com.
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