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THE OFFICIAL PUBLICATION OF THE ALLIANCE OF AUTOMOTIVE SERVICE PROVIDERS/NEW JERSEY (www.AASPNJ.org) AND THE AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY (www.ARANJ.org)
TM
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11th Annual Lou Scoras Memorial Golf Outing Registration
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P.O. Box 734 Neptune, NJ 07753 EXECUTIVE DIRECTOR Charles Bryant 732-922-8909 / setlit4u@msn.com 2013 - 2015 OFFICERS PRESIDENT Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com COLLISION CHAIRMAN Dave Laganella, Peters Body and Fender 201-337-1200 / petersbandf@gmail.com MECHANICAL CHAIRMAN Keith Krehel, Krehel Automotive Repair, Inc. 973-546-2828 / krehelauto@aol.com TREASURER Tom Elder, Compact Kars, Inc. 609-259-6373 / compactkars@aol.com SECRETARY Thomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / thomas@grecopublishing.com BOARD Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net
Sam Mikhail, Prestige Auto Body 908-789-2020 / mikhail@goldcar.com Ted Rainer, Ocean Bay Auto Body 732-899-7900 / trainer@verizon.net
Anthony Sauta, East Coast Auto Body 732-869-9999 / ecabofnj@aol.com
Randy Scoras, Holmdel Auto Body 732-946-8388 / randy@holmdelautobody.com
Anthony Trama, Bloomfield Auto Body 973-748-2608 / anthony@bloomfieldautobody.com BOARD ALLIED Joe Amato, The Amato Agency 732-530-6740 / joesr@amatoagency.com
Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com PAST PRESIDENT ATTENDING Tom Elder, Compact Kars 609-259-6373 / compactkars@aol.com
CONTENTS
VOLUME 45, NUMBER 5 | May 2015
8 OUT OF BODY (AND MECHANICAL) EXPERIENCES 10 PRESIDENT’S MESSAGE
14 EXECUTIVE DIRECTOR’S MESSAGE 28 MEET THE BOARD: ANTHONY TRAMA 58 NJA ADVERTISERS INDEX
15 11th Annual Lou Scoras Memorial Golf Outing Registration
VENDOR SPOTLIGHT
by Jacquelyn Bauman
22 Thinking of Auto Repairers: The Amato Agency
LEGAL PERSPECTIVE
26 Bad Faith Litigation: An Update
FEATURE
32 NJ Suits Challenge Controversial FL Ruling by Joel Gausten
COVER STORY by Joel Gausten
36 BACK IN FOCUS: THE PARTS PROCUREMENT
DEBATE RETURNS
WHAT SAY YOU?
47 How Has Obamacare Affected Your Business?
NO BRAKES
49 Point of Pain
THE LIST
51 What Would You Be Doing if You Weren't in Automotive Repair?
53 AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY PUBLISHER Thomas Greco (thomas@grecopublishing.com)
Wharton Insurance Briefs
DIRECTOR OF SALES Alicia Figurelli (alicia@grecopublishing.com) EDITOR Joel Gausten (tgpjoel@verizon.net)
MANAGING EDITOR Jacquelyn Bauman (jacquelyn@grecopublishing.com) ART DIRECTOR Lea Velocci (lea@grecopublishing.com)
OFFICE MANAGER Donna Greco (donna@grecopublishing.com)
CONTRIBUTING EDITORS
Charles Bryant • Tom Greco • Jeff McDowell Mitch Portnoi • Dave Laganella • Ron Ananian
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
The Alliance of Automotive Service Providers/New Jersey Joe Amato, Sr. Ron Ananian Jim Bowers Charles Bryant Don Chard Guy Citro Ed Day Dave Demarest
HALL OF FAME
Tom Elder Bob Everett Thomas Greco Rich Johnson Wes Kearney Nick Kostakis Jim Kowalak Joe Lubrano
Michael Lovullo Sam Mikhail Ron Mucklow George Petrask Russ Robson Jerry Russomano George Threlfall
Cynthia Tursi Lee Vetland Paul Vigilant Rich Weber Brian Vesley Glenn Villacari Stan Wilson
NEW JERSEY AUTOMOTIVE is published monthly and is sent to AASP/NJ and ARANJ members free of charge. Subscriptions are $24 per year. NEW JERSEY AUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of NEW JERSEY AUTOMOTIVE are copyright © 2015 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Cover and Images courtesy of www.istockphoto.com.
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OUT OF BODY (AND MECHANICAL) EXPERIENCES
Quite a Pickle by THOMAS GRECO, PUBLISHER
Throughout the years, you’ve joined me on my many unique (some might say weird) food excursions. Whether it’s the hunt for blackened chicken or the perfect burger, you’ve all followed my long and winding road to taste bud heaven. Well, this tale may be the one that puts all the others to shame, because I’m about to tell you about my hunt for the perfect pickle. That’s right, the perfect pickle. Unlike most of my food cravings, I don’t have any nostalgic memories of pickles. To me, they were always just something that came with a burger; I either felt like eating them, or I didn’t. However, there was one thing I knew: I hated sweet pickles. There should be some kind of warning sign on them because they’re deceptive little suckers. As I grew older and learned to love an extra side of pickles with my meal, I was
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often surprised when I bit into one of those horrible-tasting imposters. I can handle dills (that’s for sure), but for me, the caviar of pickles are those wonderful half-sours. Over the years, I never found much of a difference in most places’ pickles. Fuddruckers has excellent pickles. Unfortunately, these days, it’s easier to find Hillary Clinton’s emails than it is to find a Fuddruckers…at least in New Jersey. The Franklin Steakhouse in Nutley has good ones, but they give them out as if they were bars of gold. When I ask for extra pickles, that doesn’t mean four slices - it means four pickles, dammit! I have to say, we had some fantastic pickles at the NORTHEAST® show this year. Just ask Jeff McDowell or Anthony Sauta. They were witnesses to me downing about 100 slices at the vendor party.
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But I have yet to find a pickle that matches the exquisite offerings found at Rein’s Deli in Connecticut. (Harold’s Deli in Lyndhurst comes closest.) We travel up to Massachusetts around four times a year to meet with AASP/MA, and I must admit that one of the great rewards of that trip is stopping at Rein’s, devouring 10-12 pickles and bringing back as many buckets as I can to New Jersey. Unfortunately, between my family and my office staff, those buckets don’t last long. Before I know it, I get my Rein’s pickle itch again. Now, it’s not like Rein’s is in Fairfield or even New Haven. It’s up past Hartford. Although I may be crazy, I’m not that crazy. So I began my quest to find out how I could get my beloved Rein’s pickles to New Jersey on a regular basis. Of course, I’m no dummy. The first call I placed was to Rein’s to see if they would ship to Jersey. Their response? “No, sorry, we used to ship but we had lots of problems with spills and such, so we don’t do that anymore.” “Can you tell me where I can get them from the manufacturer?” I asked. “Sorry, that’s a family secret.” Ugh. Then, I remembered that one time we actually noticed a
sticker on one of the buckets that mentioned that the pickles were manufactured in (wouldn’t you know it) Camden, New Jersey. How many pickle manufacturers could there be in Camden? Not many, it turns out. I found out they were called K&Z Pickles, and I promptly placed a call. Answering machine. After a few weeks of getting the machine, I began to get frustrated. Was it really that hard to get these friggin’ pickles??? After a few months, I found them on Facebook and messaged them through there. Wouldn’t you know it; I got a response within 24 hours. I explained my situation and they said that the pickles that were sold to Rein’s were available in Saker ShopRites. What the hell is a Saker ShopRite? We have dozens of ShopRites in North Jersey (even one in Nutley), and I have never seen anything like those pickles in them. As they explained to me, Saker ShopRites are independently owned stores mainly located in Central Jersey. So I trekked down to the Saker ShopRite in Edison, walked up and down the store…no sign of K&Z pickles. The only fresh pickles they had in a bucket were something called World Class. The only information on the bucket said that continued on page 54
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PRESIDENT’S MESSAGE
HIT THE LINKS! The weather is warming up, and you know what that means: It’s almost time for AASP/NJ’s 11th Annual Lou Scoras Memorial Golf Outing! As in years past,
by JEFF MCDOWELL
our 2015 Outing will be held at the pres- spend the day networking with industry tigious Colonia Country Club in Colonia, peers while benefiting a great cause. NJ, and all AASP/NJ members, supportFor those of you who did not know ers and golfers are cordially invited to Lou, he was very passionate about the importance of education and of furthering the industry through supporting those just starting out in it. That’s part of why this event holds such a special place in the hearts of AASP/NJ. In planning the annual Golf Outing in Lou’s memory, we decided to create a scholarship fund in his name so that a portion of the event’s proceeds could directly help further the career of a collision repair student looking to break into the field. Ten special students have been honored to date through the Lou Scoras Memorial Scholarship Fund, and we aim to help many more in the years to come thanks to the generous participation of our sponsors, players and supporters. With that, I would like to invite anyone who has not yet signed up for this year’s Golf Outing to please turn to page 15 and fill out the registration form, or simply contact AASP/NJ Executive Director Charles Bryant at (732) 922-8909 to get in on this great event. If you don’t golf, don’t worry; you can come for just our luncheon, our dinner or both. We also have multiple sponsorship opportunities available for the event, whether you’d prefer a monetary donation or would rather offer a prize or two for our attendees. Don’t delay; there is only a short time left to become part of a great day for a great cause. I look forward to seeing you there and working together to help strengthen our workforce for years to come. NJA
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Insurer Abuse on Auto Property Damage Claims: EXECUTIVE DIRECTOR’S MESSAGE
Where Does the DOBI Stand? Just in case anyone reading this article is not aware, the conduct of insurance companies during the settlement of claims is regulated by a set of rules in New Jersey commonly known as the NJ Unfair Claim Settlement Practices Act and the NJ Auto Physical Damage Claim Regulations, depending on whether the claim is for the first party or the third party. People in New Jersey have come to rely on the regulations governing fair claim settlements and have turned to the New Jersey Department of Banking and Insurance (NJDOBI) when an insurer handles the settlement of a claim in an unfair manner. If one looks up the regulations referenced above, they will see that they basically spell out how insurance claims must be handled from the time the claim is first reported until the claim is settled, rejected or paid and the file is closed. In fact, the Unfair Claim Settlement Practices Act actually
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states that its purpose is to promote the fair and equitable treatment of claimants by defining certain minimum standards for the settlement of claims. Certainly, one would be led to believe that such language would mean that a violation of these regulations would cause an insurer some serious problems. Unfortunately, that is not actually the case. To understand, further examination is required. Right after the statement that the purpose of the act is to promote the fair and equitable treatment of claimants by defining certain minimum standards for the settlement of claims, the regulation says, “which, if violated with such frequency as to indicate a general business practice, would constitute unfair claims settlement practices in the business of insurance.” It is absolutely critical that readers understand the impact this statement has on the regulations.
by CHARLES BRYANT
By inserting that statement in the regulation, its strength is diminished. It’s like running a red light. We all know that it is illegal to do so; however, if the police were required to catch a person running the red light at least three or four times within a week before they could stop that person or give him or her a ticket, you can bet that very few people would ever get stopped. In other words, the law would be so watered down that it would effectively become useless. It would be almost impossible to catch someone running the red light that many times. The same goes for the ability to catch an insurer violating the regulations governing fair claim settlements. As a result (for the most part), all the regulations do is give people the warm and fuzzy feeling that there are regulations that insurers must follow during the settlement of claims and penalties when the regulations are violated.
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11TH ANNUAL 2015 AASP/NJ LOU SCORAS MEMORIAL GOLF OUTING
Monday, May 18, 2015 THE COLONIA COUNTRY CLUB • 300 Colonia Blvd., Colonia, NJ 10:00am Registration Begins 11:30am Lunch Served 1:00pm Shotgun Start 5:30pm Cash Bar 6:30pm Dinner PLAYER REGISTRATION
Please list your players, company and phone number below:
Number of players:
___ x $225.00 = $ ____________________
Sponsor/Shop Name
Dinner only:
___ x $75.00 = $ ____________________
______________________________________
Hole Sponsorship:
___ x $400.00 = $ ____________________ Total Amount: $ ____________________
All payments must be received prior to the day of the outing.
Street: ________________________________ City: __________________________________ State: ______________ Zip Code: ____________ Phone: ________________________________ Fax: __________________________________ Email: ________________________________ Contact: ________________________________ ___ Hole Sponsorship ___ Platinum, Gold, Silver or Bronze Sponsorship
Please make checks payable to AASP/NJ Mail to: AASP/NJ, c/o Charles Bryant P.O. Box 734, Neptune, NJ 07753
_____ Check Enclosed OR _____ Bill My Credit Card ___ Visa ___ MasterCard ___ Amex ___ Discover Card #: ______________________________________________Name on Card: ____________________________ Exp. Date: ____________________________________________Security Code: ____________________________ Billing Address: ________________________________________________________________________________
Ask about our Platinum, Gold, Silver and Bronze Sponsorship Opportunities
This year’s outing is dedicated to the late Lou Scoras of Holmdel Auto Body. Part of the proceeds from this year’s outing will go toward a collision industry scholarship fund.
Contacts: Charles Bryant: (732) 922-8909 Randy Scoras: (732) 946-8388 The Colonia Country Club: (732) 381-9500 www.aaspnj.org for more information or to register New Jersey Automotive | May 2015 | 15
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EXECUTIVE DIRECTOR’S MESSAGE
Now, let’s take a look at what an insurer might face if they are caught violating the regulations enough to create what is referred to as a “general business practice.” One would normally think that the insurer could face a lawsuit if they violate the regulations. Unfortunately for the people relying on
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the regulations for relief, the way they are set up prevents anyone from filing a lawsuit when the regulations are in fact violated, even if it can be proven as a general business practice. There is a provision that does not allow for a cause of action required to file a lawsuit, instead leaving it to the Department of
Insurance to resolve the issue. The Department is afforded the authority to enforce the provisions of the regulations, which includes investigating complaints that come in and ultimately fining the insurers, if they choose to do so. The way the Department of Insurance determines if the regulations have been violated enough to create a general business practice is to conduct what is referred to as Market Conduct Surveys, where the Department will go to an insurer periodically and conduct a survey to see if the insurer is following the regulations. The Department will usually pick one or two issues where there is a buildup of complaints and look at a sampling of files having to do with those matters to see if the insurer is following the provisions in the regulation directly related to those things. If the Department finds that the insurer has violated the regulations enough to create a general business practice in the area being surveyed, it can choose to either warn the insurer to come into compliance or can decide to fine the insurer for the violations. Depending on the severity of the violation, the fines can be substantial; however, they usually are not. Now, even though this system seems to be quite one-sided in the favor of the insurers, we must work within the system until things change. The only way to do that is to make enough complaints to trigger a Market Conduct Survey on the issue causing the problem. Again, the Department will only act when enough complaints are filed to prove a general business practice or when enough complaints come in to trigger a Market Conduct Survey on that particular issue. Therefore, it is extremely important that members of
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our industry take the time to file a complaint when an insurer fails to follow the regulations governing fair claim settlements in New Jersey, even if it seems like nothing is being done about the issue. A single complaint here and there is not likely to result in much. However, when the complaints build up enough, the Department of Insurance is required to act to resolve the issue. One of the issues that AASP/NJ has pushed our members to complain about is the failure of insurers to pay a fair and reasonable amount to cover the cost of paint and materials. The NJ Department of Insurance has been shown that the traditional method of determining how much an insurer will pay for the cost of paint and materials (dollar figure per paint hour) is outdated, antiquated and simply doesn’t work because of the variables involved, such as the difference in cost or colors (white compared to red, for example). AASP/NJ has assisted our members by creating a generic complaint form to address the problem. Some of our members are using the form on a regular basis and flooding the department with complaints on this subject, while others are making a complaint here and there. Although we are aware that the complaints are building up on this subject, we need the majority of the membership to get involved and flood the Department with complaints on this most disturbing issue. The only way this regulation will be effective is when the complaints build up enough to show a pattern of abuse. We know it is happening; we just need to prove it by building up the complaints to a level that will prove a general business practice.
I hope the information provided in this article will assist in understanding how the regulations governing fair claim settlements in this state work. Although it is a slow process, if the members of the industry and the insureds being abused take the time to file a complaint,
the system will work. If anyone would like to discuss any information provided in this article, I can be reached on the AASP/NJ Hotline at (732) 922-8909 or via email at setlit4u@msn.com. NJA
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VENDOR SPOTLIGHT by Jacquelyn Bauman
Thinking of Auto Repairers:
THE AMATO AGENCY F
or over 20 years, The Amato Agency has been providing insurance to a variety of different industries, but has done so on an unprecedented scale in the automotive repair field. With company President Joe Amato, Sr. having been inducted into the AASP/NJ Hall of Fame at the association’s last Annual Meeting, it is obvious that the company has earned good faith in the industry. As a part of the AASP/NJ Board of Directors, Amato has proven time and time again to have the industry’s best interests at heart. “I’ve never fixed a fender. Busted a lot of them, but I’ve never fixed any of them,” Amato joked with New Jersey Automotive. “But I’ve been lucky enough to be on the Board of the association, have gotten to know guys who own shops and have come to understand their needs. We are constantly working to try and improve our programs for association members.” The Amato Agency currently offers garage policy plans and workers’ compensation plans that are exclusive to association members. This year, members who participated in Amato’s garage policy program got back 10 percent on last year’s policy. For workers’ compensation, many members receive a discount up front on a program that has paid out dividends every year it has been in place. “Our last dividend payout for workers’ compensation was eight percent,” Amato explained. It is no wonder why AASP/NJ member shops have signed up to be a part of this program.
“As a small business, it is easy to feel like you are on an island by yourself,” expressed Amato. “By being an association member, you get benefits like this and more, plus you get representation at the State House, information on a changing industry and publications like New Jersey Automotive to keep you in the know. Your competition isn’t other small businesses - it’s the larger companies that can offer employees training, benefits packages, etc. Through the association, you can offer those same benefits, creating an even playing field.” As independent insurance agents, The Amato Agency represents a number of different insurance companies, listening to your exact needs in order to find the coverage that works best for your business. Amato has the variety necessary to make sure that your coverage is individualized to your business. “We team up with a number of different insurers because no one policy is going to be good for everyone,” he says. “It’s important to us to have a personal relationship with our clients so that they know that they’re getting the best possible coverage for their business.” In the automotive industry, it is often hard to find an insurance company you can trust. Luckily for these shops in New Jersey, there’s The Amato Agency to take care of you. To request a free quote, call the Neptune office at (732) 5306740 or toll free at (800) 763-6574. More information can be found online at www.amatoagency.com. NJA
The team at The Amato Agency works hard to get AASP/NJ members the best possible coverage for their businesses.
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LEGAL FEATURE by Mitchell Portnoi, Esq.
Bad Faith Litigation: An Update
What is the current status of bad faith litigation in New Jersey? The short answer is that it is alive but on life support. What it needs is strong legislative action to enforce the theories advanced in the famous case of Pickett v. Lloyd’s, which was decided back in 1993 by the Supreme Court of New Jersey. What has followed since has been repeated stops and starts and no definitive action by the Legislature in the Garden State. There has been much confusion created by the courts in interpreting how the Pickett case was to be enforced and determining how a “bad faith” litigation case was to be proven. That is, is the insurance company going to be on the hook for all damages in excess of an insured defendant’s policy limits every time there is an excess verdict? Who determines when an insurance company acts in “bad faith”? A judge who heard all the evidence in a given case? The jury that heard all the evidence in the underlying case? Perhaps a new jury who hears about the actual decision-making process of the insurance company hierarchy? These are some of the questions posed and answered by the New Jersey Supreme
Court in Woods v. NJM, which was decided in June of 2011. The Court held that NJM was entitled to a jury determination as to whether it acted in bad faith when it failed to settle a matter within the policy limits prior to the underlying action being tried in court. The practical aspects of this decision have had wide-ranging effects. The decision regarding the supposed bad faith of the insurance company is now one for a different jury than the one that has already heard the underlying case. The proofs are of an entirely different quality and type. (That is, one must be able to discuss the insurance company adjuster’s and supervisor’s
continued on page 55
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MEET THE BOARD
The AASP/NJ Board of Directors constantly work to improve the daily business of not only association member shops, but for all automotive repair facilities in New Jersey. But what is the story behind each one of these crusaders? New Jersey Automotive sat down with Board Member Anthony Trama to learn a little bit about the background of one of these individuals who volunteer so much of their time to improve the automotive repair field.
Anthony Trama
New Jersey Automotive: How did you get involved in the automotive repair industry? Anthony Trama: When I was in high school, I was involved in a work-study program that allowed me to come work at a shop for half of the school day. I fell in love with it and ended up getting a part-time job at my local body shop. It feels like I’ve been doing this forever.
NJA: How long have you been a member of AASP/NJ? AT: I joined the association 15 years ago when I first purchased my business, Bloomfield Auto Body. My main reason for joining was to meet other people in the industry. I wanted to learn as much as I could from them.
NJA: What’s one piece of advice you would give to someone who is just starting out in the business? AT: My advice is that you have to focus on more than just your business. You have to see the bigger picture. Get involved in the industry as a whole. Get started up in associations like AASP/NJ. It’s the only way to truly have a voice and a say in what goes on. It’s YOUR business. It’s YOUR livelihood. You have to care about what affects you and stand up and do something about it.
NJA: What do you like best about the work that you do? AT: My favorite thing about what I do is the pride that comes with rebuilding a vehicle after a collision and seeing the customer completely satisfied and happy. My team works together to accomplish this. There’s a lot of stress on the consumer after an accident, and it’s great to work together to make that stress disappear from their lives. NJA: What makes you proudest about your company? AT: Bloomfield Auto Body was established in 1949, over 60 years ago. We have been a part of this community for a long time, and we’re known for our quality and customer service. Quality is our top priority.
NJA: Where do you see the industry going in the next 10 years? AT: Honestly, it makes me nervous to think about it. Vehicle construction and electronics are getting more and more complex, which complicates things a bit for our industry. If we focus on training, we can be properly educated on repairs, but there’s a certain amount of dedication that comes with something like that that not everyone seems to have. Not to mention the issue of the insurance companies and their involvement in our industry. It already puts obstacles in the way of running a shop; I can only imagine what it’s going to be like in the next 10 years.
NJA: Who has had the most impact on you? AT: The people who have had the most impact on me personally have been my parents. They are fantastic role models for working hard and making the best with what you have. Plus my wife, who supports me on the rollercoaster of a ride that is owning an auto body repair shop. She works in the business with me and helps to keep things in perspective when I feel like everything is going wrong. When it comes to who has impacted me the most professionally, there isn’t one single person. But being around other people in the industry who are more successful than me, such as other Board members, has helped me to learn so much about what it is that we do and how I can continually strive to improve. NJA
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Audi dealers strive to make you an • Audi Parts Professionals are Your Subject Matter Experts on Collision Parts, Replacement Components and Mechanical Items. • Many Audi dealers offer technical service support hotline access that can reduce your repair times and help you meet an on-time promised delivery. Helping you do business is our business. Order Audi Genuine Parts from these select dealers. Flemington Audi 213 Route 202/31 Flemington, NJ 08822 Toll Free: 800.216.5124 Fax: 908.782.9397 email: rmuir@flemington.com www.flemington.com
Classic Audi 655 North Macquesten Pky. Mount Vernon, NY 10552 914.663.2870 Fax: 914.663.2878 email: parts@westchesteraudi.com www.westchesteraudi.com
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DCH Millburn Audi 2211 Millburn Ave Maplewood, NJ 07040 Toll Free: 800.553.9250 Direct: 973.762.0262 Fax: 973.821.2040 www.millburnaudi.com
Schneider + Nelson Audi 270 Highway 36 West Long Branch, NJ 07764 732.389.1743 Fax: 732.935.7585 email: parts@schneidernelson.com www.schneidernelson.com
Audi Turnersville 3400 Route 42 Turnersville , NJ 08012 856.649.7560 Fax: 856.649.7565 www.turnersvilleautomall.com
Palisades Audi 127 Route 59 Nyack, NY 10960 Toll Free: 888-349-6075 Parts Line: 845-353-4870 Parts Fax: 845-358-5959 AudiParts@ThePremierCollection.com
Paul Miller Audi 179 Route 46 East Parsippany, NJ 07054 Toll Free: 800.35.MILLER Parts Direct: 973.575.7793 Fax: 973.575.5911 www.paulmiller.com
Town Motors Audi 400 South Dean Street Englewood, NJ 07631 201.227.6506/6536 Fax: 201.541.0314 www.townmotors.com
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an Audi Genuine Parts fan • Installing Genuine Audi Collision parts contributes towards improved cycle time that makes both your customer and their insurance company happier. • Regardless of the age of your customer’s Audi, Audi dealers have access to over 200,000 part numbers. No other supplier comes close.
Bell Audi 782 Route 1, Edison, NJ 08817 732.396.9360 Fax: 732.396.9090 www.bellaudi.com Jack Daniels Audi of Upper Saddle River 243 Route 17 Upper Saddle River, NJ 07458 Phone: 201.252.1500 Fax: 201.254.1552 email: mcavallaro@jackdanielsmotors.com www.jackdanielsmotors.com Audi Meadowlands 4700 Westside Ave. North Bergen, NJ 07047 Toll Free: 888.416.2834 Fax: 201.223.7842 www.audimeadowlands.com
Cherry Hill Audi 2261 Marlton Pike West Cherry Hill, NJ 08002 Wholesale: 856.665.5660 Fax: 856.665.4645 email: parts@cherryhillimports.com www.cherryhillaudi.com
Audi Bridgewater 701 Route 202-206 N Bridgewater, NJ 08807 Toll Free: 888-685-5712 Parts Direct: 908-800-9000 Fax: 908-595-0237 email: parts@bernardsvilleaudi.com www.audibridgewater.com Audi Manhattan 800 11th Avenue New York, NY 10019 212.515.8200 Wholesale Direct: 212.515.8275 www.audimanhattan.com
Audi Brooklyn 211 63rd Street Brooklyn, NY 11220 Phone: 718-492-6400 Fax: 718-492-8899 rmerchant@audibrooklyn.com www.audibrooklyn.com Jack Daniels Audi 1601 Mc Bride Avenue Fairlawn, NJ 07410 201-398-1209 Fax: 201-475-8666 www.jackdanielsmotors.com
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FEATURE by Joel Gausten
NJ Suits Challenge Controversial FL Ruling The ongoing and much-discussed Multidistrict Litigation (MDL) in Florida now involves repairers in the Garden State.
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O
n March 13, attorneys representing the plaintiffs in two New Jersey cases, Quality Auto Painting Center of Roselle v. State Farm, et al. and Ultimate Collision Repair v. State Farm, et al., issued responses to the defendant insurers’ request for dismissal. These cases are part of the MDL filed by the Mississippi-based Eaves Law Firm. Currently, the Multidistrict Litigation is being heard in the Middle District of Florida by Judge Gregory Presnell, who will be applying the laws in his state to each case unless it can be demonstrated by either the defendants or the plaintiffs that a particular state law differs from those in Florida. Both of the responses to the New Jersey cases attempt to do exactly that by arguing that what applies in Florida law may not have the same legal standing in New Jersey. For example, in his January 21 order issued in A&E Auto Body, Inc., et al. v. 21st Century Centennial Insurance Company, et al. (one of the more than 20 antitrust suits currently consolidated in the Middle District of Florida), Judge Presnell dismissed one of the seven counts in the A&E case, “quasi-estoppel,” with prejudice, meaning that the plaintiffs cannot refile a revised argument for it. (“Quasi-estoppel” prevents one party from taking a position inconsistent with a position that was previously advocated, regardless of whether the
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party to be estopped intended to misrepresent or conceal facts.) Although Florida courts have long recognized that equitable estoppel serves as a defense, Judge Presnell stated that it was unsuitable as a plaintiff argument. Despite this ruling, the New Jersey responses state that “New Jersey courts have long permitted parties to assert quasi-estoppel offensively as both a claim and a counterclaim,” adding that the defendant insurers’ “assertion regarding quasi-estoppel are contradicted by decades of New Jersey law permitting its pleading by parties.” The responses offered the following court cases to illustrate this position: • Kazin v. Kazin, supra: Quasi-estoppel sought and applied against defendant husband in divorce case, prohibiting him from asserting invalidity of plaintiff’s prior divorce to escape division of marital assets and alimony after enjoying the privileges of marriage to plaintiff for several years. • Green v. State Health Benefits Com’n, 373 N.J. Super. 408 (App.Div. 2004): Appellate court reversed prior decision of administrative agency, specifically to allow Plaintiff to present evidence of her claims for estoppel and quasi-estoppel. • Gilbert v. Durand Glass Mfg. Co., Inc., 258 N.J. Super. 320 (App.Div. 1992): Appellate court affirmed propriety of giving plaintiff’s quasi-estoppel jury instructions where plaintiff was fired without warning although defendant employer had unwritten procedure of providing verbal and written warnings to employees prior to termination. In both New Jersey suits, the plaintiffs allege (among other things) that the defendant insurers’ actions violated New Jersey code § 56:9-3: Every contract, combination in the form of trust or otherwise, or conspiracy in restraint of trade or commerce, in this State, shall be unlawful...For violations of this statute, a party injured by the
proscribed actions of a defendant is entitled to treble damages...Defendants herein have repeatedly and intentionally violated this statute. The Defendants have formed and engaged in a conspiracy or combination to impose maximum price limits upon the Plaintiff for its products and services. The aforesaid offenses have had the effect of eliminating competition within the automobile damage repair industry, elimination of some shops from substantial segment of the automobile damage repair industry for refusing or attempting to refuse the Defendants’ arbitrary price ceilings, and subjecting repair shops to collective control and supervision of prices by the Defendants and co-conspirators. Plaintiffs have been damaged by Defendants’ violation of this statute. The Quality Auto Painting complaint is available online at tinyurl.com/nx54239; the March 13 response can be read at tinyurl.com/k4u74ev. The Ultimate Collision Repair complaint can be read at tinyurl.com/kknt8fr, with the March 13 response available at tinyurl.com/l32hbz6. In related news, April 1 saw Oregon become the latest state to be added to the MDL, with a suit (Leif’s Auto Collision Centers v. State Farm, et al.) originally filed November 2014 against a multitude of insurers being added to the pile. The Oregon complaint includes a request for injunctive relief prohibiting the defendants insurers from “further engaging in placing into effect any plan, program or practice which has the purpose or effect of directing, advising or otherwise suggesting that any person or firm do business or refuse to do business with any plaintiff automotive repair shop with respect to the repair of damage to automobiles.” The full text of this suit can be read at tinyurl.com/kqd839v. NJA
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COVER STORY by Joel Gausten
Last year, you couldn’t open a trade magazine or attend an industry event without being exposed to the controversy surrounding insurermandated parts procurement. With the New Zealand-based PartsTrader building a presence in America through their partnership with State Farm, both DRPs and independents spent several months protesting the company’s arrival on our shores. And then the mandate went into effect, and the cries were mostly silenced. Until now. From shops in New Jersey leaving State Farm over PartsTrader to new arguments on the floor of CIC, it is becoming very clear that we have not seen nor heard the last of the industry’s push against insurer control in the parts arena.
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“When one door closes, another one opens.”
In the months leading up to PartsTrader’s arrival in the Garden State, it wasn’t uncommon to hear repair facility personnel express the concern that this form of insurer-mandated procurement would eliminate a shop’s ability to use vendors of their choosing. Last year, this worry hit home for one longtime AASP/NJ member and State Farm referral shop owner after PartsTrader became mandatory for Select Service facilities in the state. As an owner of a shop that is factory-certified for three brands, he soon found himself in a very uncomfortable position and a tug-of-war scenario that no shop owner ever wants to face. “I must support my sponsoring dealerships,” he says. “They send the work to me; I need to buy the parts from them. I can’t be dealing with Tom, Dick and Harry across the country.” After weighing his options, the owner walked away from his years-long agreement with State Farm instead of implementing PartsTrader in his business. Nearly a year since making that decision, he says he now faces almost daily battles with the carrier. “They’re constantly refusing to pay for things I need to do to make a proper repair,” he says. “Since I got off their program, they’re flat-out steering everything they can possibly get their hands on away from me. Pretty much with every State Farm [job] that comes in here, I’m on the horn with some management person because they’re short-paying me.” Additionally, he tells New Jersey Automotive that a good percentage of these conflicts involve the carrier’s insistence on writing for used suspension parts. “They flat-out refuse to pay [for] anything over and above a used suspension piece,” he complains. “Insurance companies have way too much control. They can pick, choose and do whatever they want and nobody polices them. It’s getting out of control.” For one former Select Service shop owner, PartsTrader proved to be an unnecessary step in an otherwise efficient in-house parts ordering process. “When I order parts, I want them when I order them,” he says. “I don’t want to have to wait 30 minutes to see if it comes back. If it doesn’t go through, you have to do it again. It just wasn’t time-efficient; I didn’t like it at all.” Another AASP/NJ member tells us that he is able to achieve more efficient parts procurement simply by maintaining relationships with his chosen suppliers. “When I place an order, I usually email the vendors I use, and it’s done,” he offers. “If they have any questions, they call or email me. I have specific
people I talk to when I order parts who are good at what they do, and that’s why I use them. With PartsTrader, you’re cutting out that interaction with a person where you say, ‘I have this part that goes here, but I have no idea what the part number is; it’s not in my software and I can’t find it. Can you help me out and send me diagram of this area so I can see if I can find it?’” PartsTrader was already weighing heavily on this member’s mind when State Farm decided to remove his business from their program over what he says was a disagreement on parts usage. “The reason I’m not on the program with them anymore is because I was not ‘cost effective,’” he says. “It was Big Brother looking at an estimate – not knowing that I work on high-end cars – and saying, ‘They’re not using used parts.’” Although he says he was relieved to no longer have to contend with PartsTrader at his facility, he has nonetheless faced a dramatic drop in his business with State Farm. “I know there are a lot of long-term customers who would come here, but they’re told not to,” he insists. “That bothers me; I’ve had customers call and say, ‘We’d like to use you, but I was told that if we go there, they won’t guarantee the work.’ I go, ‘They never guaranteed it to start with. We did!’ The customers are getting bad information and getting misdirected.” Despite these issues, the member claims that he has been able to weather the storm by signing on with other insurer programs. In fact, one major carrier that he was trying to get “for a good 10 years” called on the very same day State Farm severed ties with him. “When one door closes, another one opens,” he says.
“Did PartsTrader pay for you to be in this room?”
Despite the fact that PartsTrader went national last year (including in markets like Massachusetts, where it exists as a stand-alone product without an insurer endorsement/mandate), inter-industry discussions on the company have been noticeably quiet in recent months – especially when considering the roar heard throughout the industry in the months leading up to the system’s arrival. However, the national industry’s focus on PartsTrader – and the very concept of mandated parts procurement – was re-energized during the April 9 Collision Industry Conference (CIC) in Atlanta, where the CIC Parts & Materials Committee held continued on page 42 New Jersey Automotive | May 2015 | 37
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COVER STORY continued from page 37 a special panel discussion to “take an insightful look into the inefficiencies of the current parts procurement system.” As the first real discussion on the topic held at CIC since PartsTrader’s national rollout last year, the event inevitably showcased conflicting views on the ever-controversial
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product and the overall use of electronic parts procurement in today’s industry. Panelist and industry consultant David Luehr (Elite Body Shop Solutions) noted that his clients have shared both positive and negative experiences with the PartsTrader system.
“I would say about half of them have embraced it and are ordering everything through PartsTrader, and the other half is still fighting it,” he said “Do you think they should be fighting it?” asked CIC Parts & Materials Committee Co-Chair John Bosin. “That’s a loaded question,” Luehr replied. “They should probably not be fighting the use of electronic parts procurement. It’s not PartsTrader that causes the problems; it’s a great system. The problem is how shops are being asked to use it.” A new face to CIC, North Carolinabased shop owner Clint Rogers used his appearance on the panel to praise PartsTrader for improving efficiencies at his business. “I think there was a lot of apprehension in the industry about the PartsTrader program,” he said. “A lot of people feel like it was pushed on us. But I can tell you my situation; I wanted to give it an honest run. Before I was going to criticize something, I wanted to see how it really was. It’s hard to say something does or doesn’t work until you give it a fair shot. I switched to 100-percent PartsTrader; every ticket I order goes through PartsTrader at this point.” Rogers also noted that he has not encountered resistance from State Farm over the types of parts he orders through the system. “I’m not seeing a line drawn in the sand that says you have to use the cheapest part,” he revealed. “That’s not what I’m seeing in my market. In fact, I’ve almost never chosen the cheapest part. The reason is, the cheapest part isn’t always the most efficient or effective for that repair...I’m personally not getting any pushback on that. None whatsoever.” Interestingly, Illinois shop owner and fellow panelist Jeanne Silver (CARSTAR Mundelein) noted a much different experience at her facility. “I did get a phone call [asking], ‘Why didn’t you pick the lower-priced part?’” she revealed. “I think that is dependent on the market you are in. Maybe in Raleigh they don’t do that...but it’s been done to us.” Above all, Rogers credited State Farm for helping the industry embrace electronic
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parts ordering as a way to improve the repair process. “It was time for us to make a change,” he said. “Unfortunately, part of the problem was, as an industry, we weren’t driving that change. Let’s be honest... no one was pushing the electronic thing until State Farm came along.” CIC attendee Andy Ingalls, southeast regional vice president for Gerber Collision and Glass in North Carolina, took issue with Rogers’ suggestion that State Farm deserved credit for prompting the industry’s widespread use of electronic parts ordering. “There are systems out there; they’ve been out there for years,” he said. “To say that we went to electronic [ordering] because PartsTrader or State Farm made us? That’s the most ridiculous statement I’ve ever heard in my life.” Ingalls wasn’t the only person who took issue with Rogers’ words. Addressing the panel from the crowd, SCRS Executive Director Aaron Schulenburg voiced the frustration of those CIC attendees “who are tired of sitting in this room and fielding
commercials.” To that point, he asked Rogers if he had received compensation from PartsTrader to participate in the CIC panel. “Did you pay for yourself to enter [CIC] like everybody else?” he inquired. Rogers responded that Schulenburg’s suggestion was “way off base,” stressing that he merely wanted to offer his “honest experience with the product” and that PartsTrader’s financial contribution to his appearance was nothing more than a $200 plane ticket. “If the product you’re endorsing paid for you to be in the room, and the rest of the panel isn’t being paid to be in the room to endorse other aspects or programs, I think there’s something disingenuous to the audience about that, and they deserve to know,” Schulenburg countered. “Did PartsTrader pay for you to be in this room?” “Yeah,” Rogers replied. Reacting to the tense atmosphere in the room, Silver defended Rogers’ participation in the panel despite having his travel paid for by PartsTrader.
“The fact is, he uses a product that works for him, and he likes it,” she said. “To quote Hillary Clinton, ‘What difference does it make?’” Earlier in the discussion, Silver laid out perhaps the most common concerns expressed over the PartsTrader situation: One, at a time when the industry has multiple parts procurement systems available in the marketplace, State Farm shops were simply given PartsTrader to use. Two, what happens if other insurers mandate other products for similar use? “I’m a great believer in electronic parts procurement,” she shared. “However, I don’t want to go to five different systems, and I would have loved the opportunity to have looked at another system [before PartsTrader]. Is it 100-percent efficient? No. Is it 100-percent correct? No.” As seen at CIC and heard in conversations with shops closer to home, PartsTrader isn’t 100-percent popular, either. NJA
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Paul Miller Porsche
Princeton Porsche
Manhattan Motorcars
Schneider Nelson Porsche
3419 Route 46 East Parsippany, NJ 07054 Toll Free: 800-356-4553 Direct: 973-227-3000 Fax: 973-575-8396 www.paulmiller.com
270 11th Ave, NYC, NY 10001 Phone: 877-661-1586 Fax: 646-473-0798 www.manhattanmotorcars.com
3333 Route 1 Lawrenceville, NJ 08648 Phone: 609-945-1500 Fax: 609-945-1501 www.princetonporsche.com
Porsche of Cherry Hill 2261 Marlton Pike West Cherry Hill, NJ 08002 Toll Free: 866-843-2351 Local: 856-324-3941 Fax: 856-665-4645 www.cherryhillporsche.com
280 Route 36 East West Long Branch, NJ 07764 Phone: 732-935-7600 Fax: 732-935-7602 www.schneidernelson.com
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WHAT SAY YOU?
“It’s so expensive to give healthcare to my employees’ spouses that I’m giving them bonuses if their spouses are on their own insurance plan, whether through the marketplace or through their own employer.”
“Despite the warnings and problems, my company signed up for the Obamacare SHOP marketplace and we’ve actually been pretty happy with it. Not enough small businesses are aware of this resource.”
PATERSON MORRISTOWN “I know I’m in the minority here, but I think Obamacare has worked out well for us. I cut my employees’ insurance program, but they get tax credits for doing it themselves from the marketplace. Plus, because I made those cuts, I’ve been able to give them raises. Of course it’s not ideal, but I haven’t heard any complaints yet.”
“I have under 50 employees, so it didn’t really affect my business. They get their own healthcare, but it affected my personal healthcare. My premiums are lower, but my deductible is absolutely outrageous.”
“The plan I used to offer my employees got canceled and was replaced with a much more expensive plan, which is more than $1,500 more per employee each year. It’s caused me to have to make cutbacks in other areas.”
CHESTER
CARTERET
EDISON
“Honestly, my costs have doubled for a lower quality plan.”
BORDENTOWN
TOMS RIVER
“I had to make cutbacks, laying people off. We’ve hit some hard times and our budget couldn’t handle the transition. It’s a shame; we lost some really great guys. They just hadn’t been here as long as the others, so when the time came to let people go, it had to be them.”
“My premiums rose by like 20 percent and the coverage is way worse than what we had before.”
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POINT OF PAIN NO BRAKES by Ron Ananian
Everyone has one – a point of pain, that moment when dealing with a repair shop becomes a problem. It must be human nature. Every week, I try to make sense of the “how” and “why” of this when dealing with automobiles and people. It seems logical to me that reliability and mobility come to mind when dealing with a device that requires absolute safety. Because of this, I want to have a good relationship with the person who is going to repair it. Then again, is that even possible today? Are we smart enough to know the value of a good relationship? We all wonder at one time or another. The central air conditioning at my house is serviced every year. The person who does this, at least to me, is very important, especially around mid-July. It’s not about price; it’s about accuracy, honesty and results. Does it do the job? Does it keep me comfortable? All of those factors allow me to focus on other things.
AND THIS IS WHERE OUR STORY BEGINS TODAY. A new customer looking for (in her words) a “real mechanic” came in with a 2005 Honda Civic and requested an estimate on the timing belt. It was her son’s car; he was using it for college. It had been bought a year ago and the odometer showed just over 90,000 miles, with nothing serviced. Her big question was, “How much is a timing belt replacement?” I responded, “How much of it do you want replaced?” Timing belts are still a very misunderstood component. If you know little about them and can only understand one thing, make it this: Sometimes when they break, they cause the engine to damage itself – everything from cylinder head repair/replacement to complete engine assemblies. That’s the best case scenario. Sometimes, the belt breaks in the worst possible location, such as when an 18-wheeler is bearing down on you and getting out the way is a great idea. And yet with this catastrophic calamity hanging out on the edge, most people today only seem to want to know about the dollars, not about actually doing it right. As always, I broke down the timing belt maintenance into bite-size, easy-to-understand pieces: Here is the minimum repair and here is the real world, the consequences if the extras are not done and the benefits if you do. There are many more factors than most realize. She nodded her head in agreement throughout the explanation. She even started to get excited because, as she put it, “No one has ever explained a
repair like this; it makes a lot of sense to do it right!” And that was it. I sold her the job, EXCEPT... I never saw her again; no reason why. Even though the estimate was in her budget after talking about it, she needed her husband’s approval and I agreed. History has shown me that when everyone is on board, it cuts down the odds of “another expert” being heard from halfway through the repair.
THE BOTTOM LINE IS.... Human nature is a big part of auto repair, and both are a very deep and dark study. I used to think that part of my job was to provide a service, repair the broken vehicle and educate the masses. The longer I am doing this, the more I feel compelled to add something else to that: justification. Especially with regard to why I do things a certain way and why customers benefit from the procedure. The difference between what customers see as important for daily survival dealing with their cars and what we as repair shops look for is far apart and growing. In the end, someone quoted a cheaper price, maybe less of a repair and with cheap parts – probably something gypsy in nature. The job probably made little or no money just to drag another “job” through the shop and put another nail in the “why do it right?” coffin. When you estimate auto repair, always keep in mind what that vehicle represents and who is driving it. Doing it right the first time ensures that you won’t have to do it again for lack of proper repair. It just makes sense for everyone involved. The question is, are you “logical” enough to realize it, or is it just a point of pain to think about? NJA
’Til next time, I’m Ron Ananian, The Car Doctor, reminding you that “Good mechanics aren’t expensive; they’re priceless.” Ron Ananian, owner of R\A Automotive in Waldwick, NJ (est. 1978), is heard weekly in 140 markets on his nationally syndicated radio talk show. He is a working technician and former AASP/NJ Board member. Beyond his radio show, Ron writes and speaks for the automotive industry at trade shows and events. Visit The Car Doctor online at www.cardoctorshow.com.
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THE LIST
We reached out to some of our readers to find out what they would be doing if they weren’t in automotive repair.
What would you be doing if you weren’t in automotive repair?
“Have you ever seen those ghost hunter shows on television? I want to do that. Not actually hunt ghosts because I don’t believe in that [stuff]. But I’m sure those guys get paid a heck of a lot of money to go into old places at night and pretend they hear things.”
“My wife always tells me I “Even if I didn’t do automocould be a professional pain tive repair, I’d still be doing in the a** if I wanted to.” something with my hands.
“I honestly couldn’t see myself doing anything but this. If I had to choose something, it would have to still be related to cars. My most out-there idea I’d probably be in some “Is there any job out would be professional race car driver. other trade like air condithere that pays you to If I’m looking at something less absurd tioning repair or plumbing or sleep? Because that’s but more work, I wish I could have carpentry or something. I what I would be doing if been an engineer and actually create I wasn’t doing this. could never picture myself the cars I work on now. But I never Mattress tester, I guess.” working a 9-5 desk job.” had the money for that kind of schooling.” “It seems like the field to get into nowadays would be tech stuff. Either computer programming or IT services. My sister’s husband is a computer programmer. He works from home, works only about 40 hours a week and still makes as much as I do. That’s what I want to be doing. Same money, less amount of work.”
“Well, when I was a kid, I was really interested in the weather. I remember doing a report in the fifth grade or something on tornadoes and being fascinated with them. Maybe I would have been a meteorologist or a storm chaser.”
“If I didn't work in collision repair, I’d be in mechanical repair. I should have done that in the first place.”
“I would have inherited my dad’s farm if I hadn’t done this.”
“Let’s say I had to change careers tomorrow, I’d pick the job that has the most carry-over from what I’m doing now. I’d get into welding of some sort, or paint airplanes for a living. Something where I could use tools I already know how to use and not have to do any extra schooling or much training.” New Jersey Automotive | May 2015 | 51
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ARANJ
The Automotive Recyclers Association of New Jersey
Wharton Insurance Briefs An ARA Member
ARANJ 2015 Officers
President Bob Dirkes / Dirkes Used Auto Parts (609) 625-1718 / dirkesauto@gmail.com
1st Vice President Ian Szoboszlay / Ocean County Auto (732) 349-0332 / ian@cosmosautoparts.com
2nd Vice President Darryl Carmen / Lentini Auto Salvage (908) 782-6838 / darryl@las-parts.com 3rd Vice President Joe Goodman / Leesville Auto (732) 388-0783 / joeg@leesvilleauto.com
Executive Director Brian Snyder / Auto Recyclers of NJ (609) 714-2339 / brian@aranj.org
ARANJ 2015 Board of Directors
Mike Ronayne Tilghmans Auto Parts (609) 723-7469 tilghmans@snip.net Mike Yeager EL & M Auto (609) 561-2266 elandmauto@aol.com
Rodney Krawczyk Ace Auto Wreckers (732) 254-9816 aceautonj@comcast.net
Bert Witcraft Auto Express (856) 728-8367
Ed Silipena American II Autos (609) 965-6700 esilipena@yahoo.com Harry Shover Porchtown Auto (856) 694-1555
Mike Caputo Lacey Used Auto Parts, Inc. (609) 693-0898 laceyautomike@aol.com
Norm Vachon Port Murray Auto (908) 689-3152 portmurrayauto@yahoo.com
Personal auto insurance policies in NJ provide Personal Injury Protection (PIP) coverage. PIP is your medical coverage for injuries that you sustain in an auto accident. PIP pays for you or other persons covered under your personal auto policy if the insured are injured in an auto accident. It is also referred to as “no fault” coverage because it pays your own medical expenses, regardless of who was at fault. PIP has two parts: 1) coverage for the cost of treatment you receive from hospitals, doctors and other medical providers and 2) reimbursement for certain other exposures you may have (such as lost wages or the need to have someone take care of your home). You can purchase both or medical treatment only. Business auto insurance policies also provide PIP coverage; however, you need to add “additional” PIP coverage and list the individual name(s) on the endorsement. Without being listed on the business auto policy, your personal auto policy PIP coverage will pay your medical coverage. It is very important that you bring this information to the attention of your agent when discussing your business auto insurance coverage, especially if you are using dealer plates on your personal vehicles. As always, if you have any questions, please call me.
Mario DeFilippis, AAI, Vice President 800-221-0003 (1320) • 908-513-8588 (cell) mdefilippis@whartoninsurance.com NJA New Jersey Automotive | May 2015 | 53
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OUT OF BODY (AND MECHANICAL) EXPERIENCES continued from page 9
they were made specifically for Saker ShopRites. Since they were the only thing that resembled what I was looking for, I bought a bucket. I went out to the parking lot and opened them up. They were good, but they weren’t Rein’s. So I headed north to the Woodbridge Saker ShopRite (which happens to be the size of a small city). Again, all they had was the World Class. Since I was halfway there, I figured I’d swing by the Saker ShopRite in Belmar (which was conveniently located about a half mile from the Windmill). You guessed it. World Class. The following Monday, I finally got a hold of the sales manager at K&Z Pickles. I said, “I have a strange question.” He said, “I sell pickles. How strange can it be?” My kind of guy. I said, “I go to a deli in Connectic…” Before I could finish, he said, “Rein’s!” Yup. I explained my dilemma and he confirmed to me that the World Class were indeed the same pickles distributed to Rein’s. When I asked him why they didn’t taste the same, he gave me a quick education in how many variables can affect the way a pickle tastes. He advised me to look for buckets that did not have any cloudiness in order to get as close to the Rein’s taste as possible. Last week, I headed back down to the Windmill, picked up a bucket that was clear at the ShopRite and you know what? Pretty damn near Rein’s. Pickle debacle solved. As far as detectives go, Batman’s got nothing on me. NJA
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LEGAL FEATURE
continued from page 26
understanding of the case and its potential significance and determine why and how those ideas became different than the reality that came about.) The fact is that these bad faith cases have become extremely expensive to pursue and may only be worthwhile if the amounts of damages left unrecovered are extreme and the insurance company’s actions are truly egregious. This would be based on a case-by-case analysis at best. While the ideals of Picket v. Lloyd’s’s are still the law in New Jersey, the teeth have been somewhat removed by the Legislature’s failure to act on what should be statutory law and the Supreme Court’s procedural protections afforded to an insurance industry that arguably is already well protected. Should you need any additional information on anything related to this topic, please call Mitchell H. Portnoi, Esq. at (973) 228-9900. NJA
Mike Lovullo Distributor for
and
Micro-Mix Paint and
Materials Calculator in Bergen, Passaic, Essex and Hudson Counties in New Jersey.
CALL Office: (973) 696-3176 or Cell: (201) 452-0987 New Jersey Automotive | May 2015 | 55
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ADVERTISERS’ INDEX Acme Nissan ..............................................18 Amato Agency ............................................23 Audi Group ................................................30-31 Axalta Coating Systems ..............................6 BMW Group ..................................................40-41 Bridgewater Acura ......................................46 Cadillac of Mahwah ....................................20 CCC Comp-Est ..........................................55 Classic Audi................................................10 Continental Auto Parts ................................27 Cosmos Recycled Auto Parts ......................17 Clinton Acura..............................................57 Crashmax Equipment ..................................9 Cycan Industries ........................................53 Dover Dodge ..............................................45 Empire Auto Parts ......................................55 Flemington Audi..........................................5 Flemington Group ......................................IBC
Fred Beans Parts ........................................4 Future Cure ................................................42 Glen Toyota ................................................OBC Hyundai Group............................................24 JMK BMW..................................................11 JMK Saab/JMK Fiat ....................................8 Klean Frame ..............................................55 Maxon Mazda ............................................21 Maxon Hyundai ..........................................52 Mazda Group..............................................19 Mercedes Benz of Freehold ........................8 The Mike Kaufmann Dealer Group ..............16 Mini Group ................................................35 Mitsubishi Group ........................................38 Mopar Group ..............................................25 NORTHEAST® 2016 ..................................58 NUCAR.......................................................12-13 Paul Miller Audi ..........................................50
Porsche Group............................................45 PPG ..........................................................3 PPGMS ......................................................26 Prestige Motors ..........................................43 Princeton BMW ..........................................29 Princeton Mini ............................................27 Sherwin-Williams........................................34 Subaru Group ............................................56 Town Audi ..................................................57 Toyota Group ..............................................39 Toyota of Hackensack ................................IFC Valtek ........................................................54 VIP Honda ..................................................48 VW Group ..................................................46 Westbury Jeep ..........................................44 Wheel Collision Center ................................54
Thank you from AASP/NJ for attending and exhibiting at ® NORTHEAST 2015! Save the Dates for 2016! March 18, 19, 20, 2016 58 | New Jersey Automotive | May 2015
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