New England Automotive Report October 2023

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New England Automotive Report October 2023 3
4 October 2023 New England Automotive Report

DEPARTMENTS

PRESIDENT’S MESSAGE

6 | Fighting to Befriend My ADAS Features

EXECUTIVE DIRECTOR’S MESSAGE

8 | I Too Have a Dream by Evangelos

LOCAL FEATURE

14 | AASP/MA Partnerships that Can Put Your Business in Better Health by

IN MEMORIAM

18 | Industry Leaders Remember the Life and Career of Walter Thomas by

WHERE ARE THEY NOW?

22 | Bill Cahill Remains a Friend to the Collision Repair Industry

GUEST FEATURE

24 | CFO: A Job Opening for Collision Shops by Rachel James, Torque Financial Group

ALSO THIS ISSUE

7 | AASP/MA MEMBER APPLICATION

10 | AASP/MA MEETING FLYER SAVE THE DATE

20 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS

28 | EV Charging Stations: A New Revenue Stream for Your Shop?

LEGAL PERSPECTIVE

34 | Don’t Abandon Your Rights with an Abandoned Vehicle by Sean Preston, Coverall Law

New England Automotive Report October 2023 5
October 2023 • Volume 21, No. 10
CONTENTS
COVER STORY

Fighting to Befriend My ADAS Features

For 13 years, I drove the same truck, but a few months ago, I started driving a new truck, complete with every ADAS feature you could dream of – and maybe some you’ve never even heard of, or at least I hadn’t. When I ordered it a year and a half ago, I requested all the bells and whistles – I wanted it to be fully loaded with all the newest technology so I could really get acquainted with all the ADAS features that we fix every day in our shops, so I could really understand how it’s supposed to work since we’ve got to repair these things. But because of all the delays on parts and supplies, GMC was unable to manufacture the ADAS, sensors and self-driving electronics for a while, so I waited not-so-patiently until it arrived. And I was excited to try out my new toy. I mean, obviously, I was going to be fully on board with the whole deal, right?

Wrong! Since I started driving my new truck, I’ve learned a few things about myself as a driver. For example, I’m a bit of a road-hog. Anyone who’s driven roads around here knows that you’ve got to get creative to avoid potholes, so I’m a big fan of driving down the middle of the road when it’s open to save my tires, but doing that means crossing the yellow line. No big deal in a 13-year-old truck, but in my new one? Big no-no! Every time I ease into the center of the road, this truck yells at me – the seat vibrates, the steering wheel lights up, my windshield flashes a warning to get out of the middle of the road…The steering wheel

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Doug Begin

even tries to fight me to pull me back into the lane, like I don’t know what I’m intentionally doing.

So for the first month, all this crap was driving me nuts. I’ve been wondering what the heck I got myself into because it’s just annoying the heck out of me! But when I go on the highway, this thing literally drives itself. Like I can just sit back and relax while it maintains a safe distance behind other cars and just chauffeurs me to my destination, so I love that part of it. And I’m getting used to coloring within the lines because I want to make friends with my new truck instead of continuing to fight it.

But it also got me thinking. We’ve been repairing vehicles that contain complex ADAS for years now, but how many of us actually know exactly what those systems are supposed to do, how they’re intended to perform? A lot of us are still driving the same vehicles we’ve driven for years because we don’t want to deal with today’s technology, but the truth of the matter is that we have to adapt to it because it’s not going away. It’s going to keep coming, and in the future, cars are going to be even more restrictive as these systems try to make driving safer for everyone. Twenty years ago, we couldn’t have imagined what today’s cars would do, so just envision what vehicles are going to be like in another couple decades!

continued on pg. 12

Evangelos “Lucky” Papageorg

ZONE 2

Ray Belsito

Brenda Lacaire

Tom Ricci

ZONE 3

Gary Cloutier

Andrew Potter

Brian Stone

Affiliate Directors

Mike Nawrocki

McColl Rhodes

ZONE 4

Kevin Kyes

Dean Luther

Jeff White

Affiliate Directors

J.R. Force

Simon Frietas

Jayce Mitchell

Gregg Tanguay

Scott Varney

6 October 2023 New England Automotive Report
AASP/MA EXECUTIVE COMMITTEE AASP/MA STATEWIDE DIRECTORS AASP/MA DIRECTORS WWW.AASPMA.ORG 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 © 2023 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com AASP/MA ADMINISTRATIVE OFFICE President Kevin Gallerani Vice President Matthew Ciaschini Treasurer Dana Snowdale Secretary Don Dowling Legislative Director At-Large Ray Belsito Collision Director At-Large Dan Wenzel ZONE 1 Mike Penacho John Studer Dan Wenzel Affiliate Director Al Correia Brent Dabrosca C.J.
Russ Oagles
Ellis Jimmy Kelsey
Executive
AASP/MA
Director
AASP/MA Administrative Assistant Alana Quartuccio P. O. Box 850210 Braintree, MA 02185 617-574-0741
PRESIDENT’S MESSAGE

Membership Application 2023-2024

Please complete this form and return to our office via mail, email or fax with your dues payment. Thank You!

BUSINESS INFORMATION

Massachusetts Shop Registration # __________________

Company’s Official Name:

Business Physical Address:

Business Mailing Address (If Different):

Total number of Staff (Techs, office, Mgrs)________

Telephone Number: ( )- -___________ Fax: ( )- -

DUES STRUCTURE. Collision Shop Annual Dues: $650 / 12 Months*

PRIMARY BUSINESS CONTACT

Name: _________________________________________________

Email: _____________________________________________

As a member in good standing, your shop WILL BE listed on our website Click here � if you do not want your shop listed on our website map for potential customers to find you. If you have any questions about this benefit, call (617) 574-0741, ext. 1.

Yes � Please send me information regarding the following MONEY SAVING BENEFITS:

� Dental plan

� Healthcare plan

� Credit card processing

� Grant writing/training

� Google presence optimization � All five

PLEASE ENCLOSE PAYMENT WITH YOUR MEMBERSHIP APPLICATION

Check# : _______________ (IF collision shop please note your RS# on the memo line of the check) OR

CC #: ______________ EXP: ________/___________ CID: _________________

Billing Address: ____________________________________________________________________________________________________________

Name On Card: _____________________________________________ Signature: _____

Check here � to opt out of auto renewal using this credit card information for future renewal

Note: A 4 percent convenience fee will be charged for membership renewal via credit card transaction

I hereby make this application for membership with the Alliance of Automotive Service Providers of MA (AASP/ MA) for membership dues 2023-2024 as provided for in this contract.

*Membership Dues are for a twelve-month period commencing on your anniversary month of membership.

RECOMMENDED BY:__________________ FROM BUSINESS NAME: ___________________

New England Automotive Report October 2023 7 AASP-MA P.O. BOX 850210 Braintree, MA 02185 Phone: 617-574-0741
REV 12/22
Fax: 973-235-1963 Email: admin@aaspma.org
REV 06/23

I Too Have a Dream

Historically, there have been many groups that have been oppressed unjustly by those in power. These different groups stem from those brought here against their will, those who migrated here for a better life and those who were here well before anyone ever heard of the Americas. Groups have been marginalized, exploited and discriminated against based on religion, nationality and the color of their skin. From Native Americans to those dragged from their homes in their native land to be enslaved, to those who migrated to escape intolerable conditions in the homeland, ALL have felt the injustice of oppression by those who were singularly minded, focused on and driven by greed and profits.

Just a little over 60 years ago, Martin Luther King, Jr gave his “I Have A Dream” speech which sparked a movement to help bring equality to ALL men (and women). Dr. King’s moving speech dealt with the notion of emancipation and the fulfillment of the promises made by “the architects of the Constitution and the Declaration of Independence.”

In 1963, there was another document signed meant to bring fairness and equality while stripping insurers of the power they had bestowed upon themselves. That document was the Consent Decree of ’63. The collision repair industry had proven that the insurance industry had conspired to unfairly control and suppress collision repairers. The powerful and the rich had rigged the system to defraud their policyholders while taking advantage of the hard-working individuals and business owners in collision repair. Those 1963 oppressors of the collision industry and vehicle owners, are the “Goliath” insurance companies of today, nay the entire insurance industry. They may be known by different names and be subsidiaries of one another but make no mistake about it: they are part of the same insurance industry which has – for far too long – unjustly oppressed the hard-working men and women who restore vehicles to their pre-loss condition and functionality.

Times are very different, but the types of abuse and suffering that was endured still exist today. (No insult or disrespect is meant in any way in the parallels drawn.) There is a severe inequality between any other retail business and the business of collision repair. For far too long, the “menial” labor intensive work performed by “body men” was looked down upon. Long hours of strenuous work under far-from-ideal working conditions at wages that kept workers from being able to improve their status in society was the norm then as it is now.

When the occasion arose for anyone to advance his or her status, they were met with rebuke and punishment. Today, we see collision repairers who have made great strides to improve themselves and are showing fellow colleagues that they too can succeed. In far too many instances, these same “uppity” shops have been singled out as troublemakers and chastised for not knowing their place. Sadly, there are many who were “killed” (i.e. driven out of business) by insurers bent on making examples of them to keep the rest of the industry in its place. In some rare instances, frustration levels on the part of some repairers may have led to less-than-honest practices; however, these instances cannot be allowed to darken the reputation of the entire collision industry. The abusive actions of a few should not damn the entire group.

When examples of less than honest or proper actions and practices by individuals or shops are spotlighted, it should make everyone aware and caution that there are “bad” players in all walks of life and business and that all collision shops are not bad players. Some would argue that I am being a bit of a hypocrite by painting the entire insurance industry with a singular black brush. To that, I would answer that the isolated, and sometimes fabricated examples of misdeeds found in collision repair, do not compare to the daily infractions perpetrated by insurers. Far too often, and almost without exception, insurers are far from forthright in nearly every aspect of their claims handling process – from the way they sell “peace of mind” and freedom of choice to the public, to their misrepresentation of facts to legislators. Add to these items their absolute disregard and manipulation of existing laws and regulations (mostly attributed to the lack of enforcement) meant to protect consumers merely to protect their own profitability dictated by their greed. They do this all the while presenting themselves as protectors of the public when rather they are solely concerned with protecting their profits at the public’s expense.

The theme of our general membership meetings since November 2022 has been “Breaking Free in ‘23,” and just like those who banded together at the Lincoln Memorial in Washington DC in August 1963, our goal has been to raise awareness and empower individuals to take the actions needed to improve their lives. Many have taken up that banner and have made changes to weaken the grip of the insurance industry. Today, just as with the Consent Decree of 1963, collision

continued on pg. 12

8 October 2023 New England Automotive Report
EXECUTIVE DIRECTOR’S MESSAGE
EVANGELOS “LUCKY” PAPAGEORG
New England Automotive Report October 2023 9
MASSACHUSET TS PROTECTING CONSUMERS AND THE COLLISION INDUSTRY SATURDAY, OCTOBER 21 Don't miss the final part of our ongoing "Breaking Free in '23" series featuring: 10 October 2023 New England Automotive Report Sean Preston, Coverall Law Rachel James, Torque Financial Group Visit aaspma.org for more information on how to register. BREAKING FREE IN '23 PART III Plus: Ed Rachwal of Designer Office Systems, discussing ADAS & what you need to know! SAVE THE DATE!

Co-celebrating decades of creating chemistry between two industry leaders

Here’s to 241 years of combined service excellence

This year, as Albert Kemperle Inc. celebrates its 83rd anniversary, BASF also celebrates its 158th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it.

Today, as we look forward to many more decades of service to our customers, we find ourselves filled with gratitude. The creativity, hard work, and sense of responsibility of the people working for our two companies have made us what we are today. Thank you for your many years of loyalty.

New England Automotive Report October 2023 11 New England Automotive Report February 2023 11
626 E. Elizabeth Ave., Linden, NJ 07036 Phone: (908) 925-6133 Fax: (908) 925-4344 414-416 Madison Ave., Paterson, NJ 07524 Phone: (973) 279-8300 Fax: (973) 279-9030 631 Clifton Ave., Toms River, NJ 08753 Phone: (732) 797-3942 Fax: (732) 797-0774 100 Melrich Road, Cranbury, NJ 08512 Phone: (609) 860-2800 Fax: (609) 860-2801 4 Emery Ave., Randolph, NJ 07869 Phone: (862) 244-4818 Fax: (862) 244-4822 www.kemperle.com

PRESIDENT’S MESSAGE

continued from pg. 6

As repairers, we have to be able to take all the proper measures to fix these vehicles properly, and I’m finding that it’s really helpful to drive a technologically advanced truck myself. I’m learning more and more about how it’s supposed to operate, which gives me a much better idea of what my customers mean when they call in and say, “My car isn’t responding the way it used to.” The more we know, the easier it’ll be to figure out what our customers are looking for. We’ll have a clearer picture of what should be happening when we test drive their cars, which will help us know if we repaired them correctly.

The future is coming, whether we like it or not, so instead of fighting ADAS and advanced technology, maybe it’s time to befriend it and accept what’s coming down the pike. It’s here to help us and make life easier if we just let it. It’s also why you can’t miss AASP/MA’s “Breaking Free In ‘23- Part III” on October 21 which will feature an ADAS segment presented by Ed Rachwal of Designer Office Systems. See page 10 for details!

AASP/MA PRESIDENT KEVIN GALLERANI is president of Cape Auto Collision Center in Plymouth, MA. He can be reached at (508) 747-0316 or kevin@capeautobody.com.

EXECUTIVE DIRECTOR'S MESSAGE

continued from pg. 8

repairers have been making consumers more aware of the practices of insurers. When shops do so, they have realized that in most cases, consumers are not the “sheep” insurers think or hope that they will be. Collision repair shops who have implemented the “copay” process to cover the “short pay” attempts of insurers are indeed benefiting. They have experienced an uptick in their fair and reasonable profit margins and are able to cover their expenses, pay their well deserving and highly technically advanced technicians (notice: NO LONGER body men) more in line with counterparts in other industries. In doing so, they have been able to welcome back technicians and draw new blood into a better and more exciting collision repair industry.

Our next General Membership meeting, set for October 21, will continue to add more tools to better protect collision repairers who have already made advances. It will also help give those who have been considering making changes in the way they run their business the opportunity to make the dream of a better collision repair industry a reality. Dreams that come true are the ones that have an action plan behind them and people willing to fight to see their dreams come true.

continued on pg. 42

12 October 2023 New England Automotive Report
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Mastria Volkwagen

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fax: 508-802-9966

email: vwparts@mastria.com

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Balise Volkswagen

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Quirk Auto Dealers

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New England Automotive Report October 2023 13
“Volkswagen“ and the Volkswagen logo are registered trademarks of Volkswagen AG. ©2023 Volkswagen of America, Inc.

AASP/MA Partnerships that Can Put Your Business in Better Health

AASP/MA works hard to support the collision repair businesses throughout the Commonwealth. If you’ve been reading the pages of this magazine month after month, you know how hard the Alliance works to fight for and support legislation on collision repairers’ behalf, while ensuring they have access to the best resources possible via chapter gatherings, general membership meetings and thensome.

Well, the Alliance’s dedication to help businesses thrive does not stop there. An Alliance made up of business owners knows first hand what it takes to run a business. They know shops need all the help they can get, especially when it comes to cutting overhead costs and recruiting and retaining good employees.

Perhaps one of the most worthwhile benefits Alliance membership can bring a shop owner is access to affordable health care. Thanks to an ongoing partnership with World Insurance Associates, AASP/MA has been making this happen, and participating shops are saving thousands on healthcare costs!

It’s difficult for independent businesses to get affordable access to healthcare, but that is no longer the case.

“This is not your everyday health insurance plan,” explains Joe Amato, Jr. of World Insurance Associates, which was instrumental in establishing the plan when it first launched with AASP-New Jersey. “ERISA regulations allow us to sponsor a program that gives our small and mid-sized members the ability to obtain group rates that only larger companies would typically have access to. This not only opens the door to savings but to have the ability to offer healthcare benefits to their staff – something that many small businesses could not before World Insurance Associates brought this plan to us.”

Success in New Jersey is what inspired AASP/MA to get on Board with the program.

“Members have saved thousands of dollars while increasing their coverage,” added Amato. “Employers want and need rate stability. Health insurance plans can typically increase 15 to 20 percent in just one year, therefore driving up deductibles and copays, but that’s not the case here. The plan’s already low rates only changed by an average of three percent with no increased deductibles or copays.”

One of the largest national insurance firms, World Insurance Associates has roughly 25 locations throughout Massachusetts on hand to work with the shops of the Commonwealth, although the plan itself is low maintenance and can be easily maintained online.

AASP/MA’s partnership with World Insurance Associates is expected to bring more opportunities for savings as they plan to offer customers a commercial package as well.

Health insurance is just one of the many benefits AASP/MA has brought to its members, thanks to partnerships like this. AASP/ MA members who are up to date in their annual membership dues are also eligible to enter into a dental insurance plan with competitive costs by way of the Magellan Insurance Agency. Knowing how easily credit card processing fees can add up, AASP/ MA also has arranged for its members to get discounts in credit card processing via Chosen Payments.

It’s not too early to start thinking about making changes to bring savings to your shop in the new year. Next to payroll, health insurance is typically the second largest cost for most businesses. Getting started is easy. Submit your current insurance information via email at aaspma@worldinsurance.com

[LOCAL] FEATURE
MASSACHUSETTS MASSACHUSETTS PROTECTING CONSUMERS AND THE COLLISION INDUSTRY 14 October 2023 New England Automotive Report
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New England Automotive Report October 2023 17

Industry Leaders Remember the Life and Career of Walter Thomas

The Massachusetts auto body shop industry is mourning the loss of longtime leader and mentor, Walter Thomas. The retired shop owner, association leader and industry advocate passed away August 27 at the age of 82.

Thomas owned and operated Thomas Auto Body (Worcester) for almost 60 years until he retired in 2013. Thomas is remembered for his tireless commitment and dedication to the industry which he worked to serve in many roles including as president of the Central Mass Auto Rebuilders Association (CMARA) and as a member of the Massachusetts Auto Body Association (MABA) Board. He also served on the Auto Damage Appraisers Licensing Board (ADALB).

A lifelong resident of Worcester’s Grafton Hill neighborhood, Thomas grew up in the family business – Thomas Tire and Battery Service, which opened in 1937. He worked alongside his mother, Genevieve, and expanded the business into the full-service auto body center it was known to be until his retirement.

“Walter was definitely a leader and a man of his word,” says longtime friend and colleague, Bob Waldron (Waldron CARSTAR Auto Body). “He listened with passion, took what he heard and gave you advice. When he said he was going to do something, he did it, and he usually wasn’t wrong about his decisions either.”

Waldron met Thomas more than 35 years ago during the CMARA days. They remained friends, and in fact, Waldron bought one of Thomas’ businesses after he retired. Waldron had the honor of giving the eulogy on behalf of Thomas’ professional life.

“He had a huge following as president of CMARA, and he ran the largest state chapter for close to 20 years,” recalls Waldron.

During that time, Thomas also sat on the MABA Board and was then appointed to serve on the ADALB where he “really made some changes to rules and regulations that not only were beneficial to the auto repair industry but were fair to all,” according to Waldron. “Some of the recommendations he made 20-plus years ago still stand today. He really made an impact on the industry and its people.”

Retired ADALB attorney Victor Fanikos fondly remembers Thomas for his valuable contributions to the industry during his years serving on the ADALB.

“He was a well-respected shop owner who was selected by the commissioner to serve on the ADALB,” Fanikos reminisces. “Walter was very active in promoting auto body shop causes, and he was highly recommended. He never missed a meeting as far as I recall. He was always present and always had an opinion, obviously from the auto body point of view. He was very helpful when we redrafted

regulations on how to conduct an appraisal. He had a lot of first hand information and knowledge compared to myself and others who never did appraisals in our lives. Walter was extremely valuable in that.”

Thomas was always known as a beacon of fairness.

“He was reasonable and tried to bring the parties together,” adds Fanikos. “Whenever we had a hearing involving a body shop, or a complaint against a shop, Walter’s purpose was always to find the cause behind the dispute and determine what could be done to avoid future disputes. The whole industry will miss him for being a voice of practical reason.”

Tom Ricci (Body and Paint of Hudson) remembers his old friend and colleague for always bringing people together and standing up for what is right.

“Back in the days when Walter was on the ADALB, the Board was active, and Walter could have honest discussions with either side of the fence,” reflects Ricci. “He would get calls from both sides. Insurers would come to him for his opinions. It didn’t matter what side of the fence you were on, Walter had the right temperament to make things better.”

That right attitude also opened the doors for meetings with the Department of Insurance and other statehouse or industry meetings, Ricci explains. He credits Thomas for getting him started in state legislative efforts and recalls the time his late friend took him along to meet with Rep. Ron Mariano. “He was so relaxed in the meeting,” he says with admiration. “We just got to work and did what we had to do.”

“Walter was a great advocate and was instrumental in developing the Central Mass Auto Rebuilders Association before it became absorbed into AASP,” shares AASP/MA Executive Director Lucky Papageorg. “He was just a really great guy. He was down to earth, soft-spoken but powerful. He wanted to bring people together.”

For Papageorg, Thomas was a mentor during the time he came on as executive director of MABA. “I still remember my first meeting with him was at a Central Mass cookout. He took me aside for a half hour to speak with me, and it was very meaningful to me. I was very thankful to have been able to catch up with him recently and speak with him at length. I will always be thankful for his guidance over the years”.

Waldron said Thomas’ was a life well lived. “He touched the lives of many people and made a mark on this industry.”

18 October 2023 New England Automotive Report [IN MEMORIAM]
by Alana Quartuccio
MASSACHUSETTS
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Bill Cahill Remains a Friend to the Collision Repair Industry

Bill Cahill: In the mid-to-late ‘90s, I got involved with trying to figure out the new emissions program in Massachusetts. We have a decentralized inspections program in this state, similar to other states. The state doesn't run it; it goes to the gas stations and repair shops. I started looking at how to improve my standing in the community and my standing in the industry by getting more educated and getting more involved. I was contacted by someone from the Automotive Service Association (ASA) Massachusetts/ Rhode Island chapter who was putting together a training junket to go down to Pennsylvania for training on emission repairs, and I said, 'Count me in.'”

Shortly after, I started getting more involved with people from ASA and before I knew it, I joined ASA. Not too long after that, ASA started to break up a little bit and become AASP as we know it today but AASP was a mechanical association. Fast forward about six months, I joined the Board of Directors and soon after became president of AASP/MA-Rhode Island

NEAR: Bill, you are credited with playing an instrumental role in building AASP/MA into what it is known as today. Can you tell our readers how it all came together?

If you’ve been fighting the good fight for the betterment of the collision repair industry in the past 20-plus years, chances are you know the name Bill Cahill.

Cahill has owned BC Auto Repair in Randolph for 37 years. Although he runs a mechanical auto repair business, he’s been a supporter and friend to the collision repair side for decades. In fact, Cahill is a former president of the former AASP-MA/RI association, when its membership included mechanical shops. It has been a number of years since he’s been active with the association, so we caught up with him to see what post-association life is like these days.

New England Automotive Report: Some of our readers may not be familiar with the early association days of AASP/MA when it also included mechanical auto repair shops. How did you get involved with the association? Can you tell our readers a bit about the early days of the association?

BC: There was kind of a strange fluctuation in the Board at the time after I joined which is how I wound up being president in a short amount of time. Unfortunately, we were losing a lot of members, and there was a core group of guys who just kept things going. One of the people involved mentioned that there was a body shop group up on the North Shore that had become disenfranchised with their group, and they went on their own. I reread our bylaws like 15 times and realized that we were, in fact, a collision repair association as well.

So, at that point, we wound up bringing in a good solid 25 members, maybe more, from the North Shore group. Various positions were open on the board, and I told them that if they were to come on board, they’d have to share the burden because we were suffering from lack of members and had a hard time filling positions. So, they stepped right up to the plate, and we became a true mechanical and collision association virtually overnight. Gentlemen like Rick Starbard and Gary Cloutier were among those members. We worked as a team for several years on various projects together. Unfortunately, as the association moved forward, the collision repair side wound up getting stronger, and the mechanical side got weaker. When Right to Repair came along, that’s when we found even more division between what I consider the mechanical part of the industry and the parts manufacturers and suppliers

22 October 2023 New England Automotive Report
[WHERE] ARE THEY NOW?

side of the industry. We worked hard together, trying to get Right to Repair through. It would hit a brick wall year after year. When Rick Starbard was president, AASP MA/RI wrote its own version of Right to Repair, which included the base principle of consumer (data) privacy. We called that bill Right to Repair Plus.

We ran with Right to Repair for years, but unfortunately, the money guys shut us down and the parts guys could not get out of our backyard, so their bill was the one that prevailed, and our bill got pushed to the side.

We lived together arm in arm for a longtime, but the collision industry was fractured into three groups at the time. You had AASP, you had MABA, and you had the Central Mass Group. The three would communicate, but there would be a little bit of contention, but then they began to collaborate and that brought them back together. Then they came to the conclusion that it made no sense to have three collision repair groups in the state and decided to bring them all together under one roof, to serve as one voice…and they were 100 percent right.

NEAR: So, what has life been like since you retired from association life?

BC: I’m a friend to the industry. I have worked with a lot of different people over the years to try to get things done with Right to Repair, the inspections program and the emissions program. I’ve always been the common knowledge type of person that if you want to know how something works, this is how it works. I've stayed in touch with everybody over the years; I've never really hung up the

phone on anybody. But with that said, I'm not as active as I was before. I still read everything I can about Right to Repair that comes across my desk.

Before my wife got sick and passed away, she’d run the shop for me, but now I’ve taken over her job as the front person of the shop. She ran the shop, talked to customers, did the estimates and scheduled the appointments. I’ve tried to hire others to do that role since, but two of those people unfortunately passed as well, so it just leaves me, and I’ll probably be doing the job until I’m done here.

I’m still here, and like most people in this industry, I’m looking for a way out if you will, but it’s not easy to do anymore. I’m well past retirement age, and I'm still here; I'm still going. I like to travel a lot, which is still one of my favorite things, and I still have my motorcycle and travel by motorcycle too. I don’t know how much longer I can do that, but I’m going to do it for as long as I can. As for retirement, it’s there, and I need to figure it out at some point, but I try to enjoy things as much as I can.

Other things that keep me busy include my involvement with the Lions. The Lions are an international charity group that my wife was intensely involved with. I have always supported (and participated) as a non-member, but when my wife became ill, I joined the Lions to keep her good work going. So, I meet with the Randolph Lions Club (RLC) on a regular basis, where we work to fundraise money to donate 100 percent of it to charity. We perform community service and outreach and support blindness prevention research. And I was recently voted in as second vice president to the RLC.

New England Automotive Report October 2023 23 by Alana Quartuccio
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CF :

A Job Opening for Collision Shops

A shift is coming in the land of collision shops. The feeling has been around for some time, but there is a sense that we are upon a paradigm shift: should shops consider hiring a Chief Financial Officer (CFO)? This conversation has been coming up recently.

Shops are likely to hire a bookkeeper who manages the charter of accounts and organizes the spending and income based on predetermined buckets. QuickBooks is the likely software for the job. There is also a CPA/accountant who assists with annual tax filing. Sometimes, the role of bookkeeper and CPA are combined, but we often hear from shop owners that they want to get more from these professionals. Many feel they need more consultation on what needs to be done to better their KPIs. The truth of the matter is that these professionals have limitations on the scope of their work: their function is to provide you with the data and file your taxes. That is what is expected of those roles. Sometimes, you may be able to find a professional who goes beyond the traditional scope and offers more perspective, but in many ways, it’s like asking your estimator to also go out back and spray a deck lid!

Collision shops can hire paint company consultants and industry coaches to do benchmarking and provide great raw data for the shop to analyze and disseminate. These reports and the service provided can be so helpful for the organization to navigate future decisions, understand where they are falling short in terms of

profitability, work on shop culture and more.

On the other hand, financial planners typically focus on long-term planning, succession planning, retirement strategy, employee benefits and engagement. There is some depth to these conversations, but again, there is a limit to how far they can immerse themselves into your week-to-week operations.

Dealerships seem to have gotten this one right in a sense by having separated the functions of their business and putting managers in place to grow the different segments: sales, service, parts and collision. They also have a C-suite of managers who oversee HR, finance and operations. Not to say that the small mom-andpop operation needs a C-suite and segment managers, but we can still take notes from the dealers’ playbook.

If we are craving more information and guidance around understanding all these data sets, who is managing it? Who in your organization has ownership around setting up budgets, understanding gross profit performance and identifying if the business can afford the new spray booth? Who can wear the hat of “CFO?”

No shop is built the same. Some are one person operations, while others are considering adding business lines like rental and calibrations. Some collision owners are debating the idea of adding a second, third or fourth location. For the shops that are smaller

24 October 2023 New England Automotive Report [GUEST] FEATURE

in size, the role and ownership of being the CFO will fall on the business owner.

Randy Bottella from Reliable Collision Repair of Rhode Island and president of the Auto Body Association of Rhode Island (ABARI) offered insight on the subject. “It’s basic, but at the same time, it is important for shop owners to know some important figures. The first step is to start job costing and understanding how much they are making per job, and then they will see immediate results to help with identifying weak areas in parts, labor and estimating performance. Secondly, whether shops get this information from their bookkeeper or their accountant, shop owners need to identify their overhead costs so they can determine what their cost of business is on a monthly or weekly basis. This gives shop owners the target to know what they need to do to break even and keep tabs of that to the monthly profit and loss statement.

“It’s important for shop owners not to wait until the end of the year to know how they have performed because, at that point, it’s too late to change it. Look at these reports quarterly or preferably monthly. In most accounting programs, a profit and loss report can be printed in seconds and only takes a few minutes to review. Shop owners then have a report card to know how they did each month. Shop owners or managers not getting this financial information is the equivalent of trying to repair today’s complex cars without accessing any of the vehicle manufacturer’s data or structural measurements.”

The easy – and annoyingly difficult – part of this is having the discipline to do it. For a smaller operation, owners should be setting up monthly or quarterly mandatory CFO meetings with themselves to review all the data from all the resources they have coming in. This is a chance to review the profit and loss statement, reports from CCC and the analysis received from their business coaches and consultants as well as a chance to map out budgets and look for any outliers.

During your CFO meeting, here are some questions to ask yourself: What are our biggest strengths? What are our biggest weaknesses? What is our blind spot? Where could we improve the most? Are there any opportunities out there that we are not exercising? What are the high-level takeaways from the data you see?

For shop owners who have brought their revenue beyond $1 million by expanding into multiple locations, the role of CFO might be something to delegate to a team member within your organization.

Casey Lund, owner of Collision Leaders with eight locations in Missouri and Kansas and president of the Missouri Auto Body Association (MABA), has been actively thinking about this for the last year.

“As owners and managers, it’s easy for us to get tunnel vision in our businesses,” he suggested. “Stepping out of the day-to-day

operations helps give us clarity to build a strategy for the future. For shops that aspire to grow, it’s important to have someone watching our blind spot (coaches, consultants, etc.) and someone helping us build the roadmap for the future. I view this CFO role as the ‘strategy bridge’ between the data and implementation by the operations team. Admittedly, I wish I had brought on a CFO much sooner and would encourage other shop owners to consider who is helping build their strategy for the future.”

Whether this is another job description for the shop owner, a part-time employee or a full-fledged Chief Financial Officer position, it’s time to start considering who will be taking the accountability. This could be a hybrid role with other responsibilities for the shop. It could be a family member, or it could be an extension service of one of your existing trusted partners. Whether that person is you or someone on your team, the value offered by a CFO is priceless.

Habits of successful CFOs

• Schedule dedicated time to review data.

• Schedule meetings with consultants, bookkeepers, accountants and partners.

• Roadmap the future of the business.

• Look at trends.

• Set budgets.

• Analyze data.

• Project and forecast.

• Identify areas for budget cuts.

When done right, the CFO is the one who collects all the varied information, ties it all together and provides insight into what it all really means. Who in your organization can own this function?

Torque Financial Group is a member of AASP/MA’s Vendor Affinity Program.

Rachel James is a financial advisor for the Torque Financial Group, which offers a unique perspective and is dedicated to serving the bluecollar community, one that has considerably advanced these last few years. Before becoming a financial planner, Rachel’s career started in the blue-collar industry as an aircraft and automotive technician and as a gearhead. Along the way she has had management responsibilities, consulting positions, sales roles - you name it, she’s done it when it comes to the trade industry. She can be reached at Rachel.james@nm.com

New England Automotive Report October 2023 25
MASSACHUSETTS
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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

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

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

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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 14 Brands!

New England Automotive Report October 2023 27
[COVER] STORY 28 October 2023 New England Automotive Report EV Charging $TaTion$: A New Revenue $tream for your $hop?

“Electric vehicles (EVs) are the future…the future is EV.” Shops have been receiving this message for the past few years, and while some have invested in upgrades to their facilities, tools, equipment and training, many more have turned a deaf ear to the news. Yet, consumers are forging ahead with the purchase of EVs in many areas of the country, begging the question not only of “who will repair these vehicles?” but – more pressingly – where will drivers be able to charge them?

While the total number of EVs in the US increased from 1,019,260 to 1,454,580 from 2021 to 2022 (a growth rate of 42 percent) according to Zutobi’s “2023 EV Charging Station Report,” the number of public charging outlets have increased by just 12 percent, from 128,549 to 143,771. In its “Get Connected: Electric Vehicle Quarterly Report 2023,” the Alliance for Automotive Innovation (AAI) agreed the “installation of US public chargers is not keeping up with current and projected EV sales,” noting that as of the first quarter of this year, there was a “total of 133,982 publicly available charging outlets in US for 3.34 million EVs on the road, a ratio of 25 EVs per charger,” and while 306,047 EVs were registered that quarter, only 7,802 new chargers were added, a ratio of 39 EVs per public port.

The current shortage of public charging stations creates an opportunity for savvy business owners willing to invest in the infrastructure needed to support EV growth, and such an investment seems particularly well-aligned with the body shop world which could benefit both directly and indirectly from this type of venture.

Although installation can be costly, shops with the means and space to add one or more charging ports may enjoy increased profitability, both by attracting new customers – who may ultimately elect to have their EVs repaired at the shop – as well as by creating an avenue to generate new income by setting up a charging station similar to gas stations. How profitable are charging stations? It really depends on the level of EV adoption within the specific market, but estimates indicate the potential to earn thousands of dollars monthly from EV charging because it's a service that consumers desperately need!

While the level of adoption varies greatly across the country, Massachusetts has seen one of the highest adoption rates, likely due to incentives offered in the Commonwealth. Although MA saw a 45 percent increase in EVs (21,010 to 30,470) in 2021 compared to 2022, the number of EV charging stations over the same time period only increased by 18.16 percent (4,879 to 5,765), reinforcing the need for more businesses to invest in this type of business as it becomes more prevalent. Moreover, last year, Governor Baker signed a climate change law dictating that all new cars sold in 2035 and beyond must run on electric or hydrogen power, so EVs truly are the future…but what do shops think about this potential investment?

“We are a GM dealership that currently has one EV charging

continued on pg. 30

New England Automotive Report October 2023 29

continued from pg. 29

station on site for the Hummer EV program), but we are currently looking into investing in more units,” shares Doug Begin (Vendetti Collision Center; Franklin).

While Cape Auto Body & Service (Plymouth) has installed a charging port, Kevin Gallerani points out, “You can install them to attract people to the business, but at the same time, not every shop can get certified.”

Some shops have decided to add charging ports for the business’ use, while others have not.

“We installed a charging port inside our facility as a courtesy for our customers, not as an investment,” says Dana Snowdale (D&S Auto Works, Inc.; Abington). “We didn’t install it for the public because, in my opinion, the liability insurance coverage leaves too much exposure for us as I see it currently. As battery technology evolves and a less expensive fire suppression becomes available, we may consider it.”

“We have not installed an EV charging station and try to avoid having to charge any of the EVs while they are in the shop. Most EVs do come with standard 120-volt option if a charge is required while it’s here,” explains Adam Ioakim (Hogan and Van Auto Body; Medford) the opposing viewpoint. “That’s all we would need during the repair process to get around the shop and for a test drive. I’m not sure if the full charging station is worth the investment or space in the shop yet. You’d also need to find a way to measure the charge so you could bill for it appropriately. You wouldn’t want it to become a loss center giving away the electricity for free.”

While few shops have made the investment, it seems to be a consideration for many, though they’ve yet to make the leap for various reasons.

“We do not have EV charging equipment, but it has been on our list of future upgrades for a while now,” McColl Rhodes (Nesco Sales, Inc.; Bondsville) acknowledges. “Our shop is in a very rural area, and we see very few EVs. We would probably never have an EV charging station available to the public, just have one for the handful of vehicles we work on. If we started seeing more vehicles in our area, it would make much more sense to get a charger installed, but in our little town, we do not see very many at all. It's on our radar to get done, but we are in no hurry.”

Don Dowling (Marblehead Collision; Marblehead) agrees that it just doesn’t make sense in every market. “We have not really thought about adding stations. Our land is limited, and we are not in an area where someone charging their vehicle could do something else for a short period of time (walk to a store, have something to eat, etc.). The decision is less about the investment expense and more about location for us, because even if the charging station was installed at no cost, the revenue it would generate would interfere with shop workflow due to the lack of space. Most auto body repair shops on the east side of the state do not have much space.”

Of course, while EVs may be the future, some question whether we’re ready for them in the present.

“Although there might be some financial benefit to installing an EV station, we do not have any plans to do this in the near future. There are several reasons for this,” according to Jeff White (North Andover Auto Body; North Andover), who explains, “The general public is being prematurely pushed into the idea of EVs. I do not disagree with the concept of EV as an alternative to fossil fuels; however, the fact is that the collision industry is simply not ready for this yet. Education is needed because repair methods required for EV differ from conventional vehicles in many ways. Just like the limited charging stations available, there are limited collision repair facilities available to handle EV repairs. The result will be that many vehicles end up at repair facilities that do not yet have the equipment or education to repair these vehicles to OEM standards.

“Perhaps it is different in other states; however, here in Massachusetts, collision repairers struggle daily to operate due to the fact that the labor reimbursement rate is the lowest in the entire nation,” he continues. “As a result, our labor pool has suffered so severely that there simply are not even enough qualified technicians to repair conventional vehicles. Any technicians qualified to repair electric vehicles must therefore be trained to do so by their employer. Educating collision repair technicians to today’s current standards is already very expensive. Adding education for EV collision repair is an additional major expense. With the lowest reimbursement rate in the nation, the return on investment would be minimal at best. The cost of the equipment and education required to service both types of vehicles is what will prevent many collision repairers from making the investment. My opinion is that if conversion to EVs is being pushed upon the consumer, either the US government, the OEMs or both should provide training to the collision repair industry free of charge or at an extremely minimal cost because having improperly repaired vehicles on our roads is a matter of public safety. Placing this burden upon a struggling collision repair industry could be a real problem which is unfair to the consumer.”

Still, White is “not opposed to electric vehicles,” he clarifies. “I am mostly concerned about the timing and our ability to meet the requirements. As a shop owner, if low-cost options to educate for EVs were available, or if Massachusetts labor reimbursement rates ever become realistic, I would be much more motivated to invest. Installing an EV station will certainly be a source of revenue and help bring new clients to our door; however, this will only make sense when we are fully prepared to handle all aspects of EV collision repairs.”

Clearly, investing in EV charging stations offer a lot of opportunities…and still present challenges, but does one outweigh the other? We’d love to hear what you think! Feel free to share your opinion with chasidy@grecopublishing.com

30 October 2023 New England Automotive Report [COVER] STORY
MASSACHUSETTS
New England Automotive Report October 2023 31

PARTS.

THEY’RE CALLED “ORIGINAL BMW PARTS” FOR GOOD REASON. FOR UNCOMPROMISING PRECISION AND INCOMPARABLE QUALITY, YOUR BMW CENTER IS YOUR ONE-STOP SHOP FOR EVERYTHING BMW.

For Original BMW Parts, contact one of these authorized BMW centers:

BMW of West Springfield

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PH: 413-746-1722

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BMW of Stratham

71 Portsmouth Avenue

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FAX: 603-772-9436

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BMW of Warwick

1515 Bald Hill Rd.

Warwick, RI 02886

PH: 401-821-1510

FAX: 401-823-0530

bmwofwarwick.com

32 October 2023 New England Automotive Report
THERE HAS NEVER BEEN A BETTER WAY TO BUY THE WORLD’S BEST ENGINEERED
©️2023
BMW of North America, LLC. The BMW name, model names and logo are registered trademarks.
New England Automotive Report October 2023 33

Don’t Abandon Your Rights with an Abandoned Vehicle

The vehicle arrived at your shop. The vehicle owner signed your standard intake forms. You in-processed the vehicle and waited for word from the insurer. Whether you did all the work or simply found out that the vehicle was a “total loss,” now the vehicle is sitting there, and nothing is happening! Your forms should make clear that your invoice gets paid directly to you, but perhaps (for some reason) the insurer pays out the vehicle owner in whole. Now you are left with a vehicle nobody seems to want and an open invoice. Your calls and emails are going completely unanswered.

What do you do?

Everyone in business has an idea of their ideal customer, who is easy to work with, understanding, appreciates your value and pays promptly. You may even have an ideal job, some part of the

trade that you take extra pride in or that simply feels like a labor of love. The legal infrastructure of your collision repair business isn’t as much for your ideal customer or your ideal job. Although those two certainly benefit from the steps you take, not just to protect your relationships and your work, but the way in which your forms outline and establish everyone’s rights, responsibilities and expectations.

When a vehicle is taking up space on your property, and all you are getting is radio silence, you want one thing more than anything else: options!

You could try and sell the vehicle. You could try and sue somebody. But ideally, you want to be able to sell the vehicle and sue for a judgment on the remainder – if any.

34 October 2023 New England Automotive Report [LEGAL] PERSPECTIVE by Sean Preston, Coverall Law
continued on pg. 38
New England Automotive Report October 2023 35 Long Subaru 7 Sutton Rd. Webster, MA 01570 800-982-2298 Fax: 508-879-1212 tschube@longauto.com Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475 Balise Subaru 561 Quaker Ln. Warwick, RI 02893 TOLL FREE: 800-992-6220 FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for 14 Brands! Patrick Subaru 247 Boston Turnpike Shrewsbury, MA 01545 508-756-8364 Fax: 508-752-3691 www.patricksubaru.com jlavalley@patrickmotors.com Avoid problems down the road that will cost you time, money and customers. Choose Genuine Subaru Replacement Parts, engineered to fit better today, and perform better tomorrow. Genuine Replacement Parts For the Road Ahead. For Genuine Subaru Body Parts, contact the following Authorized Subaru Dealers:

WHY GENUINE PARTS?

IRA Toyota of Manchester 33 Auto Center Road Manchester, NH 03103

Toll Free: 800-828-6076

Direct: 603-657-2410

Fax: 603-657-2419 stirrell@iramotorgroup.com www.iramotorgroup.com

IRA Toyota Danvers 161 Andover Street Danvers, MA 01923

PH: 800-774-8411 ext.1

Direct: 978-739-8306

FAX: 978-739-8098 www.iramotorgroup.com

Grieco Toyota 415 Taunton Ave. East Providence, RI 02914

Direct: 401-438-2206

Fax: 401-431-0673

toyotaparts@griecocars.com www.griecotoyota.com

Wellesley Toyota 216 Worcester Street Wellesley, MA 02481

PH: 800-734-0006

Direct: 781-237-4042

FAX: 781-237-3481 parts@wellesleytoyota.com www.wellesleytoyota.com

Bernardi Toyota 1626 Worcester Road Framingham, MA 01702

Parts Direct: 800-248-3033

FAX: 508-879-7895 www.bernarditoyota.com

Balise Toyota 1399 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 14 Brands!

Balise Toyota of Warwick 1400 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 14 Brands!

36 October 2023 New England Automotive Report For Toyota Genuine Parts please call one of these authorized local Toyota Dealers:
ToyotaPartsAndService.com 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. It’s
the Right Thing to Do
New England Automotive Report October 2023 37 Get it right from the source. Ford and Lincoln Mercury dealers are the one-stop source for all of your collision repair needs. Using Genuine Parts can help your body shop reduce cycle time, improve relationships with insurance companies and satisfy customers. So get everything you need in just one call to your one-stop collision repair resource – your local Ford or Lincoln Mercury Dealership. Sarat Ford Lincoln Mercury 245 Springfield Street Agawam, MA 01001 413-786-0430 Fax: 413-789-3715 www.saratford.com Quirk Auto Dealers 115 E. Howard St. Quincy, MA 02169 Toll Free: 877-707-8475 Contact these Ford or Lincoln Mercury dealers for all your parts needs: Call Us For All Your MOPAR Needs or visit us on the web: www.mcgover ncjdrofnewton.com For Fir st Time Customer s, Call me: Mando Bogosian, W holesale Manager TOLL FREE: 800-741-7563 DIRECT: 617-454-2990 FAX: 617-467-0006 Call us and get the right MOPAR parts the FIRST TIME! Hour s: M-F: 7am-6pm Sat: 7am-1pm Hour s: M-F: 7am-6pm Sat: 7am-1pm NEW ENGLAND’S NEWEST MOPAR DEALER 777 Washington Street • Newton, MA 02160

continued from pg. 34

The easiest place to start is to make sure the vehicle has enough value to be worth selling. Ideally, the value covers the entire open invoice plus your costs of sale, and you can return any remainder to the registered owner. But when a vehicle fit for scrap is taking up space on your lot, it might make more sense to simply tow it to the registered owner’s address of record, rather than try to collect storage on the world’s worst paperweight.

You really must consider the costs your shop has incurred and the value provided to the vehicle owner, lienholder (if any) and insurer (especially if the vehicle is a total loss). Under the Massachusetts Garage Keeper’s lien statute: your invoice must reflect “proper charges due [to your shop] for the storage, work and care of the [vehicle].” (M.G.L. c. 255, s. 25)

So, in our scenario, we don’t just have an abandoned vehicle, we have that unpaid invoice with proper charges which relate directly to the work done, including storing and caring for the vehicle. With that invoice amount in mind, and storage accruing daily, the value of the vehicle in question must make sense. (What good is collateral that literally nobody wants?)

The salvage value or potential value of the abandoned vehicle directly influences the decision whether to proceed with the sale of the vehicle – which also affects how vigorously the other parties will try to retrieve the vehicle.

Next, we look at the parties who have benefited from your shop’s services. These are the parties that would be most likely to pay your invoice and retrieve the vehicle.

The vehicle owner is the most obvious and (I believe, historically) overlooked. Shops are accustomed to being paid by insurers and benefiting from the patronage of vehicle owners. Typically, shops are far more comfortable pushing against insurers to get paid (with full support of the vehicle owner, ideally), rather than putting any amount of pressure on the vehicle owner.

These vehicle owners are members of our communities and may even be our friends. But at the end of the day, shops have the most direct legal relationship to the vehicle owners. It’s only because of the vehicle owners that shops have any interaction with the insurers because contractual relationships exist first between insurer and vehicle owner, then vehicle owner and your shop when work is requested. (Outside of referral programs, shops don’t have a direct contractual relationship with insurers.)

Your shop’s intake forms are the most crucial part of your business operations. The vehicle owner must acknowledge your rates and that those rates must be promptly paid. Part of those standard forms should include a direction that the insurer pays your shop directly (also known as a “Direction to Pay.”) And while the vehicle owner may, at any time, retract that Direction to Pay, there is language in Massachusetts insurance law which dictates an insurer’s responsibility to pay your shop; for example, on first-party claims:

“The insurer shall pay either to the insured or to a repair shop if the insured so indicates in writing to his insurance company….” (M.G.L. c. 90, s. 34O(1))(emphasis added)

So, while the vehicle owner owes your shop for anything agreed to within the agreement, and you have a lien on any charges which are proper, you also could recover directly from the insurer, so long as your shop’s forms are in order. I cannot stress enough how important forms are to your shop. On October 21, 2023, I will be presenting at the AASP/MA event: Breaking Free in ’23, Part III. I implore you to ensure your shop is represented at the event as I will be outlining the elements necessary for shop forms to afford you maximum protection and the most operational freedom available. (See page 10 for more information.)

The insurer may be liable to pay under the above form, or you might be able to couch the lack of payment within a claim for unfair claims settlement practices in Massachusetts General Laws, Chapter 176D, assuming there was coverage at all.

But if the vehicle was a total loss, and the insurer now holds title, your storage and services are more directly benefiting the insurer because of their primary property interest. All the proper charges incurred against the vehicle have then transferred from the responsibility of the vehicle owner to the insurer as the new owner.

Along the same vein, a lien holder (if any) holds a property interest…an interest which your shop has been protecting by storing and caring for the vehicle. Your protection of these interests is valuable and should be compensated.

The Garage Keeper’s lien is powerful in that it can completely wipe out a financing lien, will give you either the right to sell or justify a bond for as much as double your proper invoice and begins the moment you begin storing or providing any services on the vehicle. But you must make sure to give notice to each interested party, including that lien holder. You cannot deprive them of that property interest without due notice and the chance to square up with you and retake the vehicle.

Unfortunately, if the vehicle isn’t worth anything, the practical choices are limited. Whatever path you choose, there is no benefit to delay. Your goal is to keep vehicles moving, not simply accruing storage. If an insurer and vehicle owner aren’t being responsive, then you lean on your intake forms, give proper notice and keep your operations moving.

Coverall Law Managing Attorney Sean Preston finished in the top of his law school class at the historic Howard University School of Law in Washington, DC after serving in the United States Army. He went on to excel in business and legal strategy, serving some of the world's most recognizable brands in neighboring industries. Sean recently returned from Berlin, Germany with his family (where he served in Rolls-Royce's General Counsel function) and today resides in Wareham, MA, where he helps to oversee and meaningfully lead efforts in the region for Coverall Law. He can be reached at (508) 6355329 or spreston@coveralllaw.com.

38 October 2023 New England Automotive Report
[LEGAL] PERSPECTIVE
MASSACHUSETTS
New England Automotive Report October 2023 39 MAKE QUALITY YOUR GOAL WITH KIA GENUINE PARTS. Protect your customer, protect your businessInsist on Kia Genuine Parts. 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 Wagner KIA of Shrewsbury 730 Boston Turnpike Shrewsbury, MA 01545 (866) 438-3997 Option #2 Kiawholesale@wagnermotors.com 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 14 Brands! 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 Balise Chevrolet Buick GMC 683 E. Columbus Ave. Springfield, MA 01105 Toll Free: 800-992-6220 Fax: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com One Call, One Truck for 14 Brands! KEEP IT GENUINE INSIST ON GENUINE GM PARTS Contact the following dealers for all your Genuine GM Parts needs: Page 1 THE RIGHT PARTS. RIGHT NOW. Call us today for all your parts needs! PLATINUM SPONSOR • 8 Delivery Trucks on the Road Daily • Same-Day Parts Delivery • Open Six Days a Week • $1,000,000 Parts Inventory 415 Taunton Ave. | East Providence, RI 02914 Direct: 401-438-2206 | Fax: 401-431-0673 toyotaparts@griecocars.com | griecotoyota.com PARTS HOURS MON-THURS: 7:30am-7pm | FRI: 7:30am-6pm | SAT: 7:30am-5pm

Boch Hyundai Boch Chevrolet

THE SERVICE NEVER STOPS AT BOCH HYUNDAI!

PARTS LINE: 781-762-9210 TOLL FREE: 800-559-9210

VISIT US: 391 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062

KNOWLEDGEABLE STAFF AND GENUINE GM PARTS!

E-MAIL: bchwholesale@ boch.com

PARTS LINE: 781-762-9210 TOLL FREE: 800-559-9210

VISIT US: 381 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062

E-MAIL: bchwholesale@ boch.com

One Call, One Truck for 14 Brands!

40 October 2023 New England Automotive Report

EXECUTIVE DIRECTOR'S MESSAGE

continued from pg. 12

I too have a dream that one day we will see a fair and equitable labor reimbursement rate being paid based on expertise, training and proper equipment, not one based upon the lowest common denominator, which is not brought about by intimidation, misrepresentation or the “killing” of businesses. Changes which can be made by the mere use and enforcement of current rules and regulations and even with common sense.

If you have already made changes in order to “Break Free In ‘23,” KUDOS to you! If you are still on the fence, please realize that you and only you can make the difference to positively affect your business, your future and the future of the collision repair industry. Please join us at the General Membership meeting on October 21 to see how. (See page 10 for details) If you are not already a member of the ALLiance, consider joining. (See the application on page 7.)

YOU CAN DREAM TO DO MORE IN ’24! YOU CAN MAKE IT HAPPEN! TOGETHER, WE CAN MAKE IT HAPPEN!!

42 October 2023 New England Automotive Report Accudraft Paint Booths OBC Albert Kemperle 11 Audi Group 33 Balise 23 BMW Group .................................................. 32 Boch Chevrolet (GM Parts Group) 39 Boch Hyundai ................................................ 40 Colonial Auto Group 2 Coverall Law................................................... 34 Crown Collision Solutions 14 Empire Auto Parts .......................................... 42 Ford Group 37 Grieco Toyota 39 Honda Group 27 Hyundai Group 15 Ira Subaru 16 Ira Toyota of Danvers 17 Kelly Automotive Group IBC Kia Group 39 Linder’s, Inc. .................................................. 39 Lombard Equipment 26 Long Automotive Group .................................. 4 Mazda Group 40 McGovern Chrysler Jeep Dodge Ram ............. 37 Mopar Group 31 Nissan Group ................................................. 21 Quirk Wholesale Parts 3 Sarat Ford Lincoln 12 Shop For Sale 16 Spanesi 15 Subaru Group 35 Toyota Group 36 USI North America ........................................ 41 Volvo Group 15 VW Group ..................................................... 13 Wagner Motors 9 WIN ............................................................... 14 ADVERTISERS’ INDEX
AASP/MA EXECUTIVE DIRECTOR EVANGELOS “LUCKY” PAPAGEORG can be reached at (617) 574-0741 or lucky@aaspma.org MASSACHUSETTS

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