New Jersey Automotive July 2018

A “Cost of Doing Business”? I Don’t Think So

July 2018 $595

AASP/NJ Hosts Seventh Annual Race Night

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)

REVENUE: How the DEG is Research &

Dismantling the “Overhead” Myth

www.grecopublishing.com

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We Appreciate Your Business!

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New Jersey Automotive | July 2018 | 5

P.O. Box 734 Neptune, NJ 07753 EXECUTIVE DIRECTOR Charles Bryant 732-922-8909 / setlit4u@msn.com 2017 - 2019 OFFICERS PRESIDENT Jerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / ultimatecollision@att.net COLLISION CHAIRMAN Dennis Cataldo, Jr., D&M Auto Body 732-251-4313 / jr@dandmautobody.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 John Craggan, Ultimate Collision Repair, Inc. 732-494-1900 / jcraggan@ultcollision.com Gary Gardella, Jr., County Line Auto Body 732-363-5904 / countylineautobody@gmail.com Dave Laganella, Peters Body and Fender 201-337-1200 / petersbandf@gmail.com Sam Mikhail, Prestige Auto Body 908-789-2020 / mikhail@goldcar.com Ted Rainer, Ocean Bay Auto Body 732-899-7900 / ted@oceanbayautobody.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 Dave Gruskos, Reliable Automotive Equipment 732-495-7900 / dave@rae1.com Mike Kaufmann, Advantage Dealer Services 973-332-7014 / mkaufmann@advantageds.com PAST PRESIDENT ATTENDING Jeff McDowell, Leslie’s Auto Body 732-738-1948 / chacki@aol.com

PUBLISHER Thomas Greco / thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli / alicia@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten / joel@grecopublishing.com CREATIVE DIRECTOR Lea Velocci / lea@grecopublishing.com EDITORIAL/CREATIVE COORDINATOR Alana Bonillo / alana@grecopublishing.com

CONTENTS

VOLUME 48 NUMBER 7 | July 2018

10 OUT OF BODY AND (MECHANICAL) ExPERIENCES 14 PRESIDENT’S MESSAGE 17 14TH ANNUAL 2018 AASP/NJ LOU SCORAS MEMORIAL GOLF OUTING REGISTRATION

20 22 24 61

ExECUTIVE DIRECTOR’S MESSAGE I-CAR CALENDAR COLLISION CHAIRMAN’S MESSAGE NJA ADVERTISERS’ INDEx

LATE BREAKING NEWS 26 Tesla Body Shops to Hit US

LOCAL NEWS 30 AASP/NJ Hosts Seventh Annual Race Night 36 New Role, Same Dedication: Paul Cimillo Returns to Glen Toyota 42 NJ Auto Body License Renewal Certificate Available at AASP/NJ Aluminum Repair and Welding Seminar

AASP/NJ MEMBER SHOP PROFILE 46 821 Collision

by Alana Bonillo

50 COVER STORYby Joel Gausten Research & Revenue: How the DEG is Dismantling the “Overhead” Myth LEGAL PERSPECTIVE by Mitchell Portnoi 54 Mediation in the World of Business Litigation

INDUSTRY UPDATE by John Walczuk, ZB Negotiations 56 Diminished Value: Vehicle Owners Lose Again – Part 1 of 2

WHAT SAY YOU? 58 What are your thoughts on consolidators/MSOs coming into New Jersey?

AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY 61 Wharton Insurance Briefs by Mario DiFilippis

OFFICE MANAGER Donna Greco / donna@grecopublishing.com CONTRIBUTING EDITORS Charles Bryant • Mario DeFilippis • Jeff McDowell • Mitch Portnoi • Ron Ananian Keith Krehel • Jerry McNee • Bob Dirkes

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 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 © 2018 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. Stock Images courtesy of www.istockphoto.com.

Joe Amato, Sr. Ron Ananian Jim Bowers Charles Bryant Don Chard Guy Citro Pete Cook Ed Day Dave Demarest Phil Dolcemascolo Tom Elder Bob Everett

Thomas Greco Dan Hawtin Rich Johnson Wes Kearney Nick Kostakis Jim Kowalak Joe Lubrano Michael Lovullo Jeff McDowell 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 | July 2018 | 7

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844-98-PARTS (844-987-2787) New Jersey Automotive | July 2018 | 9

OUT OF BODY (AND MECHANICAL) EXPERIENCES

by THOMAS GRECO, PUBLISHER

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Some of you may have noticed last month that for the first time in many years, my column was missing from this magazine. Sadly, nothing can prevent our lives by being touched by tragedy. On Memorial Day, my beautiful sister Diane passed away after a brief but brave fight with pancreatic cancer. It’s hard enough for me to write those words. Maybe someday I will be able to write a column about Diane. But I can’t right now. In fact, I find it hard to write about anything. It hurts too much.

This is a column I wrote a few years ago but never ran because my staff thought it was too raw. And to some it may seem that way and maybe even a little inappropriate.

But you know what? Re-reading this column made me smile for the first time in almost a month. And Diane would have laughed her ass off at this story. Of all my family members, Diane was the only one who made a point of going online and reading my column every month. She was ALWAYS my biggest fan. So, this one’s for you, Di. I hope they have the internet in Heaven. Just don’t show Mommy and Daddy…

Every family has traditions. The Royal Family has the changing of the Guard. The Kennedys had their famous backyard football games. The Kardashians have fame for achieving absolutely nothing. Traditions come in all forms. But we Grecos, well, we have a very special tradition. It’s called “The Curse.”

Ahh, the Curse. Passed down from generation to generation. From the villas of Naples and mountains of Calabria to the shores of Ellis Island and the parks of Nutley, NJ. Yes, it’s the curse. What is the curse you ask? Well, let me put it this way. If you have a weak stomach, stop reading right now. Ironically, if you have a weak stomach you probably know all about the curse. That’s right: The curse is when you get that very, very queasy feeling in the pit of your stomach. When all of a sudden, your belly button is emitting these strange alien-like noises and you sense that first bead of sweat gathering on your forehead while wracking your brain trying to focus on where the nearest bathroom is. And whether or not you will make it there in time.

My first real memories of the curse came about in high school. In fact, it came on quite rapidly somewhere around my sophomore year. I remember sitting in seventh period US History with Mr. Perry when it hit me. Second row, fifth seat. I was too busy holding my breath to notice if anyone was looking at me as I tried to shift into some

kind of comfortable position that would make it go away. You may ask, why didn’t you just go to the bathroom? Well, you see, back then, for some damn reason, the stalls in the boy’s bathrooms didn’t have doors on them (was this a Nutley phenomenon???).

Clearly if you EVER wanted to get a date, going to the bathroom in school with the curse was out of the question. Everyone in the district would know about it by the end of the day. I did, however, find a brief respite. Down in the boy’s locker room off the gym, the stalls did have doors. If I could only make it there…. unfortunately, my classroom was on the other side of the campus and trying to explain why I was away from class for 20 minutes was not going to please Mr. Perry. Luckily (this time), the curse withdrew, and I was able to make it through the class. As it turned out it wasn’t luck at all. It was a warning.

The curse is evil. Plain and simple. It waits and waits and attacks when you are at your weakest. Like the time I finally got the girl of my dreams to go out with me. The year was 1979 and I was taking her to New York to see a play called Beatlemania. I will never forget that fateful Sunday afternoon. Picking her up in my new Camaro, cruising on Route 3 headed into the big city.

Then it hit me. As I clenched my legs together on first cramp, I rounded the curve towards the Lincoln Tunnel right into…

BUMPER TO BUMPER TRAFFIC. The next exit was about a mile away. In that traffic, I was looking at least 45 minutes. I wanted to cry.

All Grecos have learned to live, expect and even accept the curse. Perhaps our most legendary episode was the day my nephew was taking a final college exam. He was in one of those large auditorium classrooms when he began the three-hour test.

Since it was a final, no one was allowed to leave the classroom until his exam was completed. In other words, once you left your seat, you were done. No bathroom breaks. No water breaks.

Nothing. My nephew opened the booklet and started breezing through it when boom, he simultaneously felt the gut punch and heard the alien in the silence of the vast study hall. He looked around and noticed some other students making “wtf was that” faces. The cramps started coming like labor pains, more and more rapidly as he furiously filled in the blanks on his answer sheet, no longer concerned if they were right or wrong. Fifteen minutes into the three-hour exam, he closed his book, got up and walked quickly to the professor’s desk, dropped off the booklet and ran out the door in search of the nearest bathroom as 500 other students looked on with amusement and wonder.

He found the men’s room about halfway down the hall. It was locked. His shirt was now drenched from sweat. He ran down the stairs to the next floor and found another bathroom. The stalls were full. He raced out into the hallway, glanced at a water fountain, said screw it…as two girls walked out of the women’s room. He dashed to the stairway to the bottom floor of the building, found what he was looking for and rid himself of the curse like he never had before.

Sitting there, pondering the unimaginable acts the curse had made him consider, he sighed with relief as he heard someone standing across the room trying to hold his breath. He chuckled to himself as he heard another walk in and scream, “Oh my God!” and run back out into the hallway. Ahh, the curse. What a cross to bear…

NJA

New Jersey Automotive | July 2018 | 11

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New Jersey Automotive | July 2018 | 13

PRESIDENT’S MESSAGE

A “COST OF DOING BUSINESS”?

I DON’T THINK SO If you’re reading this, then it’s safe to say you are committed to keeping up with industry changes and reading about ways to improve your standing as a collision repairer. Of course, the only way to be a legitimate repairer in 2018 is to follow OEM procedures. Unfortunately, not everyone we deal with on a daily basis is willing to help us achieve that goal.

The time it takes to look up OEM processes is not included in labor times.

As a result, there needs to be a charge associated with that. Unfortunately, some insurers are often the last ones to figure that out. There are parties in this industry that would argue that this commitment of time is a cost of doing business, but aren’t there already enough things we give away? Currently, my shop spends thousands a month in management, estimating, certification and OEM repair information platforms. Those expenses are

14 | New Jersey Automotive | July 2018

only going to go up. At what point will things stop being considered a “cost of doing business” and actually become billable procedures that can help us survive?

Looking up proper repair information is a viable task that needs to be performed, and it doesn’t end with just locating and utilizing that information - which, as we all know, can change tomorrow. After looking up the correct data, blueprinters then have to review that with the estimators and the technicians. That has to be done for every repair – even the “simple” ones. Of course, there’s also the time spent trying to convince an insurer that doing these things make sense. Shops that go through the effort to do things right deserve to be compensated for their time.

We research every vehicle that comes into our facility, and the costs associated with that have become too great for us to

by JERRY MCNEE

simply give away. We have been actively charging for information look-up for some time now. Some insurers have been paying these fees, but the vast majority continue to draw a line in the sand. We’re no longer in a position to simply eat those costs and let an outside party determine what’s best for us.

These are new and changing times.

Unfortunately, many insurers don’t embrace change. None of us can afford to use technology that’s 30 years old, and we can’t treat a vehicle repair like we did in the past. The OEMs are the experts in determining how their vehicles need to be repaired, and we are the experts in facilitating that repair and providing a safe and professional experience for our customers. It’s time for insurers to get on board with that.

NJA

New Jersey Automotive | July 2018 | 15

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14TH ANNUAL 2018 AASP/NJ LOU SCORAS MEMORIAL GOLF OUTING

Monday, SEPTEMBER 17, 2018 THE COLONIA COUNTRY CLUB • 300 Colonia Blvd., Colonia, NJ PLAYER REGISTRATION: Company

Player

Number of players:

___ x $225.00 = $ ____________________

Dinner only:

___ x $75.00 = $ ____________________

Hole Sponsorship:

___ x $400.00 = $ ____________________ Total Amount: $ ____________________

All payments must be received prior to the day of the outing.

Sponsor/Shop Name

Phone Number

10 am - Registration Begins 11:30 am -Lunch Served 1 pm - Shotgun Start 5:30 pm - Cash Bar 6pm - Dinner Served HELP SUPPORT AASP/NJ

________________________________________ Street: __________________________________ City: ____________________________________ State: ______________ Zip Code: ______________ Phone: __________________________________ Fax: ____________________________________ Email: __________________________________ Contact: ________________________________ ___ Hole Sponsorship ___ Platinum, Gold, Silver or Bronze Sponsorship

Platinum Sponsor - $3,000 Gold Sponsor - $2,000 Silver Sponsor - $1,500 Bronze Sponsor - $1,000 This 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.

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: ________________________________________________________________________________ Contact: Charles Bryant (732) 922-8909 or Randy Scoras (732) 946-8388, Colonia Country Club (732) 381-9500 or visit www.aaspnj.org

THERE HAS NEVER BEEN A BETTER WAY TO BUY THE WORLD’S BEST ENGINEERED 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 Springfield 391-399 Route 22 E. Springfield, NJ 07081 Toll Free: 800-648-0053 Fax: 973-467-2185 bmwofspringfieldnj.com

Flemington BMW 216 Route 202/31 Flemington, NJ 08822 PH: 877-657-2787 Fax: 908-782-1795 njparts.com/bmw

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Princeton BMW 3630 Quaker Bridge Road Hamilton, NJ 08619 PH: 609-570-1611 Fax: 609-570-1602 princetonbmw.com

Wide World BMW 125 East Route 59 Spring Valley, NY 10977 PH: 877-817-3895 Fax: 845-425-5080 wideworldofcarsbmw.com

Circle BMW 500 Route 36 Eatontown, NJ 07724 Parts Direct: 732-440-1235 Fax: 732-440-1239 wholesale@circlebmw.com circlebmw.com

Paul Miller BMW 1515 Route 23 South Wayne, NJ 07470 PH: 973-696-6060 Fax: 973-696-8274 paulmillerbmw.com

Park Ave BMW 530 Huyler Street South Hackensack, NJ 07606 PH: 201-843-8112 FAX:201-291-2376 parkavebmw.com

BMW of Bridgewater 655 Route 202/206 Bridgewater, NJ 08807 PH: 908-287-1800 FAX:908-722-1729 bridgewaterbmw.com

BMW of Bloomfield 425 Bloomfield Avenue Bloomfield, NJ 07003 Parts Direct: 973-748-8373 psantos@dchusa.com

New Jersey Automotive | July 2018 | 19

EXECUTIVE DIRECTOR’S MESSAGE

Maybe I Haven’t Made Myself Clear.

This is a Matter of Life and Death!

Over the last few months I have written article after article in an attempt to stress how important it is that modern vehicles on the roads today get repaired properly once involved in a collision. I have been stressing the importance of proper repair over a span of approximately 30 years. However, until now it has mostly been a matter of consumers getting treated fairly when they’re involved in an accident and depending on their insurance company to pay an amount that will allow a collision shop to repair their vehicle safely and properly. Consumers have always deserved to have their vehicle repaired to as close to pre-accident condition as humanly possible but as we all know that doesn’t always happen, for various reasons. All the blame cannot be placed on insurance companies simply because they don’t like to pay what it will take to repair these vehicles properly. There are body

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shops in our industry that do not perform proper repairs even when they are being paid a fairly adequate amount of money. This can be attributed to numerous things such as: failure to obtain proper training, not investing in the proper equipment required to repair certain vehicles and in certain cases, simple bad business practices.

In the past, when a vehicle was not repaired to preaccident condition, one of the biggest items the vehicle owner was likely to suffer was the diminished value of the vehicle that comes as a result. This is usually not discovered until the vehicle is sold or traded in. Another item is that the vehicle may not track correctly and, as a result, tires get worn out long before they should, or the car basically just does not operate the way it did when it came from the factory. In certain cases, the poor repairs may have resulted in the vehicle being unsafe, especially if the repairs were related to the suspension or the structure of the vehicle. However, most of the time, the owner of the vehicle would simply suffer headache after headache because the vehicle simply would no longer perform the way it was designed to. Vehicle owners were under the false impression that the vehicle would never be the same after a major accident, which would often result in the vehicle owner selling the vehicle or trading it in, letting someone else deal with the problems.

Now, here comes the part where I think I may not have made myself clear, or clear enough in my past articles regarding the repair of the modern vehicles that are on the roads today. Unlike in the past, the vehicles on the roads today are equipped with features that the world has never seen before and these vehicles are capable of doing things that they never did before, often without any assistance from the driver of the vehicle.

Just to give you an idea, below I listed some of the modern technology that I’m speaking of: Auto Emergency Braking (AEB), Forward Collision Warning, Higher Speed Auto Emergency Braking, Low Speed Auto Emergency Braking, Active Braking Systems, Curtain Airbags, Electronic Stability Control, Intelligent Speed Assist ISA, Driver Attention Detection, Active Cruise Control, Thorax Airbags With Head Traction

by CHARLES BRYANT

Control, Antilock Braking System, Brake Assist System, Adjustable Steering Column, Blindspot Warning System, Daytime Running Lights, Drivers Knee Airbag, Fog Lamps, Front Airbags Driver, Front Airbags Passenger, Head Restraints, All Head-up Display, Lane-keeping Assist, Passenger Knee Airbag, Pre-crash Safety System, Reversing Camera, Seatbelt Pretensioner Driver, Seatbelt Pretensioner Passenger, Seatbelt Rear 3 Point, Tire Pressure Monitoring and the list goes on.

In other words, most of the modern vehicles on the road today can stop at both the low speeds or high speeds to avoid a collision.

The vehicle itself can monitor its tire pressure. The vehicle can speed up to avoid an accident.

The vehicle can detect a lane change even if the owner is basically sleeping behind the wheel and sound an alert to warn the owner of the change. The vehicle can tell you when something is behind you when you’re backing up and warn you before you hit it. The vehicle can warn you when you’re about to have an accident. The vehicles have steering angle sensors to assist with the direction the vehicle is headed. The vehicle can automatically tighten your seatbelts and there is so much more in the area of safety related items that are built into the modern vehicles on the roads today. However, when New Jersey Automotive | July 2018 | 21

CALENDAR

JULY 11, 2018 Aluminum Exterior Panel Repair & Replacement Allstate, Wall Township JULY 12, 2018 Steel Unitized Structures Technologies & Repair Ramada Inn – Newark Airport, Newark Squeeze-Type Resistance Spot Welding Reliable Automotive Equipment, Belford JULY 18, 2018 Adhesive Bonding Allstate, Wall Township JULY 19, 2018 Aluminum Exterior Panel Repair & Replacement Reliable Automotive Equipment, Belford Automotive Foams LKQ Keystone, West Deptford Understanding the Cycle Time Process Ramada Inn-Newark Airport, Newark JULY 25, 2018 Corrosion Protection Allstate, Wall Township JULY 26, 2018 Advanced Steering & Suspension Systems Damage Analysis Ramada Inn-Newark Airport, Newark Hazardous Materials, Personal Safety, and Refinish Safety Reliable Automotive Equipment, Belford JULY 31, 2018 Advanced Steering & Suspension Systems Damage Analysis Allstate Insurance, Bridgewater

For more information, visit i-car.com

NJA

22 | New Jersey Automotive | July 2018

EXECUTIVE DIRECTOR’S MESSAGE such a vehicle is involved in a collision many of the items mentioned above may become scrambled or need to be reset or recalibrated. If this is not done, or not done correctly, the vehicle may become confused. It may think it should slam on the brakes when it shouldn’t, or think it is going in one direction when it is going in another direction or in the wrong direction.

In order to find out what has occurred during a collision, the vehicle must be scanned before it gets repaired to detect any of the items referenced above. It is then scanned again after the repairs to make sure the systems have been corrected, reset or recalibrated. Naturally, the modern technology incorporated into these modern vehicles makes them extremely difficult and complicated to repair.

If these modern vehicles are not diagnosed and repaired correctly, and its safety systems not reset or recalibrated, people will likely suffer catastrophic injuries or die, should the vehicle be involved in another accident. Let me repeat that; people will likely suffer catastrophic injuries or die if these vehicles are not diagnosed and repaired correctly! Do I have your attention now? I hope so, because the articles that I have published in the recent months don’t seem to have hit home or got the attention that I was trying to get.

For years, the collision industry and the insurance industry have been at odds on numerous issues like what it takes to repair a damaged vehicle safely and properly. Most of the issues the two industries have fought over in the past have been on things like an insurer not paying to blend the paint to get a match, or an insurer not willing to repair damage to pinch welds caused by mounting the vehicle on a frame machine to repair frame damage, or not paying a labor rate that will allow for a fair and reasonable profit, for example, and the list can go on and on.

Nowadays, failing to calibrate a steering angle sensor might cause a head-on collision. Not scanning a damaged vehicle, both before and after a repair, could result safety related damage being overlooked which can cause the vehicle to malfunction and injure or kill its occupants. The average body man who has experience in collision repair but has not kept up with the required training to fix modern vehicles won’t have a clue about how to repair them properly.

Many of the existing technicians who have been around for years are retiring or going into other fields, rather than starting all over to get the training required to repair these modern vehicles. The new technicians that are coming into the industry who have received the proper training are demanding a handsome salary and will not work for anything less.

The purpose of this article is to wake up everyone involved, or everyone that should be involved. The issues discussed above are no longer about the two industries being at odds. Consumer agencies and consumer advocates, legislators, consumers and collision shop owners should all be involved. This is about insurers refusing to pay to repair the modern vehicles in a safe and proper manner.

The difference between now and in the past is that this time, people’s lives are at stake.

If these modern vehicles are not repaired correctly, people are going to die! If anyone would like to discuss the issues referenced in this article I can be contacted at 732-922-8909 or via email at Setlit4u@msn.com.

NJA

New Jersey Automotive | July 2018 | 23

A New Way of Doing Business

COLLISION CHAIRMAN’S MESSAGE

I can already hear the grumbling and griping out there, but I do not mind the new photo estimating process that most insurers have

decided to use. I find it to be much easier than faxing estimates, that’s for sure.

Of course I think it’s wrong that

by DENNIS CATALDO, JR.

insurance companies are shortchanging their customers right off the bat, but honestly that is nothing new. I see no difference in an estimate written in a driveway, in the rain, or where the hood wasn’t opened, compared to an estimate written via a photo. The vehicle still needs to be disassembled in either case.

Yes, on average the total amount of the supplement is higher on photo estimates compared to a physical inspection, but that really is of no concern to me. Most of the people I talk to seem to hate it and I’m not sure why. I don’t see how it is different from the previous manner of settling claims.

I normally ignore that first estimate and upload my own, which I don’t think is out of the ordinary.

Of everything that was added, I make sure to have some sort of documentation as to why the changes are needed, whether it be a picture of damage, a repair procedure, or an invoice for a scan, paint and materials or a sublet operation.

I use all of this information to better build my case for why such repairs are needed. I often find insurance companies are more willing to pay for certain things on photo estimates than when the vehicle is written up in person at the shop. If something is missing or left off I submit another supplement, most of the time with a different person and they don’t have any problem with what you are requesting.

I have yet to have a situation where the documentation failed to get me what I was after. In the end I don’t see this as a fad. Telecommunications is here to stay and this is just a new way of doing business.

NJA

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New Jersey Automotive | July 2018 | 25

LATE BREAKING NEWS

BODY SHOPS TO HIT US

For Genuine Subaru Body Parts, contact these Authorized Subaru Dealers.

Flemington Subaru 167 Route 31 Flemington, NJ 08822 Toll Free: 877-657-2787 Fax: 908-782-1795 bseymour@flemington.com www.njparts.com

Liberty Subaru 55 Kinderkamack Road Emerson, NJ 07630 Phone: 201-261-7495 Fax: 201-261-3261 Toll Free: 888-782-9493 parts@libertysubaru.com www.libertysubaru.com

D

uring the recent Tesla Annual Shareholder Meeting in Mountain View, CA, CEO Elon Musk revealed the company’s plans to enter the collision repair business.

“This is quite a big deal; we’re creating Tesla body shop repair locations. We should have, by the end of [June], at least the top 10 metro areas in the US being able to be serviced by a Tesla body shop. This will be a dramatic improvement in the cost and time of body repair. In fact, we think we might be able to do – for a lot of them – same-day body repair…If we go to a third party, in the best case it’s about a week. In some cases, it’s several weeks.”

Musk added that these Tesla body shops will be established by “basically just taking our biggest service centers, adding in an annex for body repair and pre-stocking the parts so you don’t have to wait for [them] to come from the factory.”

An examination of Tesla’s move into collision repair – and the effect it could have on the New Jersey industry – will be featured in next month’s New Jersey Automotive. Video of Musk’s presentation is available at tesla.com/ shareholdermeeting.

NJA

26 | New Jersey Automotive | July 2018

New Jersey Automotive | July 2018 | 27

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AASP/NJ HOSTS SEVENTH ANNUAL RACE NIGHT LOCAL NEWS

O

n June 12, 2018, the Alliance of Automotive Service Providers of New Jersey (AASP/NJ) hosted its seventh annual Race Night at RPM Raceway in Jersey City.

The event, which has become widely anticipated, once again brought together industry members and supporters from all over the state to take part in a fun and friendly competition, which also raises money for a good cause.

The AASP/NJ will once again donate $1,000 of proceeds from the event to the Memorial Sloan Kettering Cancer Center to aid in the fight against prostate cancer.

“It was tremendous. A lot of fun. The people there had a ball,” said Jeff McDowell, AASP/NJ past president, and founding member of the popular event. “Some of the shops brought double-digit numbers of their employees and that’s just amazing,” he added, commenting that Race Night continues to grow more and more each year.

Forty-five racers sped along the track in electric go-karts taking part in a three-race series hoping to place among the top three. Everyone who participated had fun competing and displayed great skill.

Congratulations to the top three finishers: James Moyes (Krehel Automotive) who took first place; Keith Krehel (Krehel Automotive), second place finisher; and Dave Albrecht (Pace Collision) who came in third.

AASP/NJ would like to thank everyone who participated in this year’s Race Night, and the association looks forward to seeing old and new faces at future AASP/NJ events, including next year’s Race Night. To participate in next year’s Race Night, please contact the AASP/NJ Administrative Office at (973) 667-6922.

NJA

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Audi dealers strive to make you an A

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Classic Audi 655 North Macquesten Pky. Mount Vernon, NY 10552 914.663.2870 Fax: 914.663.2878 email: parts@westchesteraudi.com www.westchesteraudi.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

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Audi Eatontown 95 Route 36 Eatontown, NJ 07740 732.389.1000 Fax: 732.483.8455 www.eatontownaudi.com

Cherry Hill Audi 2261 Marlton Pike West Cherry Hill, NJ 08002 Wholesale: 856.665.5660 Fax: 856-773-4077 email: parts@cherryhillimports.com www.cherryhillaudi.com

243 Route 17 Upper Saddle River, NJ 07458 201.252.1500 Fax: 201.254.1552 email: jmarcella@jackdanielsmotors.com www.jackdanielsmotors.com

New Jersey Automotive | July 2018 | 33

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New Jersey Automotive | July 2018 | 35

New Role, Same Dedication: Paul Cimillo Returns to

LOCAL NEWS

F

or 50 years, Glen Toyota in Fair Lawn has provided exceptional service to customers throughout the Garden State. Now, the celebrated dealership and wholesale parts enterprise has entered a new era of excellence with the return of industry veteran Paul Cimillo.

36 | New Jersey Automotive | July 2018

Originally with Glen Toyota from 1983 to 1998, Cimillo is back with the operation in his new role as parts manager. During his first stint with Glen, he started as a parts driver and eventually rose to assistant parts manager and wholesale manager.

After a lengthy stint with another

dealer, he decided to explore the other side of the business and took a job as the production and parts manager at Proline Body & Chassis in Elmwood Park. Working at the facility opened his eyes to the realities of working in a body shop environment.

“It was rough!” he says with a laugh. “I would always say, ‘Where’s my part? What do you mean it’s back-ordered? Find it!’ It was all about getting cars done and out the door as fast as I could. I also didn’t realize how much it costs for equipment, paint and materials at the shop.”

Not surprisingly, Cimillo is already using this experience to increase the level of customer care offered at Glen Toyota.

“I’m more aware now of what shops need. If something is backordered, you need to notify the shop right away. It’s also important to deliver to the body shop as early in the day as possible.”

Excited to be back at his original home, Cimillo is working hard to ensure that shops receive products from the dealer’s $250,000 collision and mechanical parts inventory in a timely and dependable manner. It’s not uncommon for the wholesale crew to deliver parts to a shop multiple times in a single day, while customers can get someone on the phone as early as 5:30am during the week.

Additionally, Cimillo is committed to pushing back against the rise of aftermarket parts. Through the pricematching system Auto PartsBridge (autopartsbridge.com), shops can receive OEM parts at aftermarket

The Glen Toyota parts department is available 5:30am to 6pm Monday through Friday and 7am-4pm on Saturday. Call (855) 237-2091 for more information.

Members of the Parts Department at Glen Toyota (L to R) Paul Cimillo, manager, Glenn Stewart, Kurt Schweizer, Rodolfo Silva, Freddy Padilla and Nelson Guzman.

Not pictured: Glibert King, Hert Irwin and Gary Valdivia

prices. This saves technicians from wasting time trying to make a non-OEM part fit in order to complete a job – something that Cimillo dealt with firsthand in his time working on the shop floor.

“If I get a bumper from Toyota, I can just paint it and pop it on. When it’s an aftermarket bumper, you need to fit it first, which takes time. You need to do that before you paint it. It could add hours to what you’re doing. It’s a shame when you have a 2018 Toyota and insurers are already writing aftermarket parts for it.”

On a more positive note, Cimillo has rejoined Glen Toyota at a special time in its history. In addition to completely remodeling the wholesale department 18 months ago, the dealership is celebrating its 50th anniversary this year. Thanks to the business’ strong reputation, Cimillo currently services many of the same customers he knew way back in the ‘80s. This rare level of customer loyalty is maintained thanks to a dedicated parts team that also includes Parts & Service Director Mike Elston, Service Manager Jason Forkins and 18-year Wholesale Specialist Kurt Schweizer.

Most importantly, the wholesale operation thrives through the ongoing support of Glen Toyota owner Catherine Holtham.

After 35 years in the industry, Cimillo looks to his new chapter with Glen Toyota as an opportunity to continue providing the same kind of dependable, hands-on service that built his decades-long career.

“I still take pride in working with shops and getting things right.”

NJA

516-361-9220

www.collisionequipment.net

New Jersey Automotive | July 2018 | 37

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Flemington Volkswagen 213 ROUTE 202/31 FLEMINGTON, NJ 08822 TOLL FREE: 877-657-2787 FAX: 908-782-1795 rmuir@flemington.com www.NJPARTS.com

Paul Miller VW of Bernardsville 118 MORRISTOWN ROAD BERNARDSVILLE, NJ 07924 TOLL FREE: 877-318-6557 LOCAL: 908-766-1600 FAX: 908-766-6171 www.paulmillervw.com

Douglas Motors 491 MORRIS AVE. SUMMIT, NJ 07901 PHONE: 908-277-1100 FAX: 908-273-6196 TOLL FREE: 800-672-1172 www.douglasvw.com

DCH Volkswagen of Freehold 4360 ROUTE 9 FREEHOLD, NJ 07728 PHONE: 732-810-7903 FAX: 732-637-8297 www.dchvwoffreehold.com email: dfilipe@dchusa.com

email: douglasparts@douglasautonet.com

Linden Volkswagen 900 EAST ELIZABETH AVE. LINDEN, NJ 07036 TOLL FREE: 800-343-5116 FAX:908-486-4232 www.lindenvw.com GeorgeP@lindenvw.com

Trend Motors 221 Route 46 West Rockaway, NJ 07866 888-267-2821 FAX: 973-625-4985 www.trendmotors.com email:dreinacher@trendmotors.com

New Jersey Automotive | July 2018 | 39

IF OFFERING ONLY ORIGINAL MINI PARTS IS A CRIME, THEN YEAH, WE’RE GUILTY. At your local MINI dealer, we believe that using Original MINI collision replacement parts will speed your repairs and increase your profitability. Original MINI parts assure an absolute perfect fit and function.

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MINI of Manhattan 793 11th Avenue at 55th Street New York, NY 10019 212-246-7375 Fax: 212-315-9560 MININYC.COM FACEBOOK.COM/MINIOFMANHATTAN

© 2018 MINI USA, a division of BMW of North America, LLC. The MINI name, model names and logo are registered trademarks.

New Jersey Automotive | July 2018 | 41

LOCAL NEWS

NJ Auto Body License Renewal Certificate Available at AASP/NJ Aluminum Repair and Welding Seminar Don’t miss an opportunity to earn critical certification towards your upcoming auto body license renewal when Flemington Car and Truck Country sponsors the next AASP/NJ training session, “Aluminum Repair and Welding,” presented by General Motors. The seminar will be held at two convenient times and locations: July 17 from 6pm to 10pm at the Holiday Inn in Totowa and July 19 from 6pm to 10pm at the Clarion Hotel and Conference Center in Toms River.

This clinic will familiarize attendees with different types of aluminum repair and welding procedures. In addition to addressing alloys and treatment methods, the discussion will focus on chemical bonding, welding methods and other sectioning procedures.

“With the changes in vehicle construction and more and more special types of metal being used in the

production of modern vehicles, this type of training class on aluminum repair, welding procedures, sectioning procedures and chemical bonding is mandatory,” commented AASP/NJ Executive Director Charles Bryant.

“Plus, the timing could not be better because this class also provides a certificate that will qualify for the renewal of the NJ Auto Body License Renewal coming up in September of 2018.”

“We are very proud to sponsor this highly valuable and worthwhile training event for our fellow industry professionals,” said Rick Calabro, wholesale sales manager of Flemington Car and Truck Country. “Attendees will walk away with a world of knowledge about important procedures and techniques that will ultimately benefit their operations. Do not miss this event.”

“Training is such a big part of what we do at NJ Parts of Flemington, and we are very proud to be a partner with AASP/NJ to host this event,” added Flemington Car and Truck Country Parts Director Howard Meeks. “We are very excited to be able to bring this type of event to our customers and help the collision repair industry stay ahead of the curve. Providing training using the correct repair procedures is crucial due to the sophistication of the vehicles in today’s environment and the ever-changing way the repairs should be done.”

Attendees who complete the course will receive a certificate that counts towards the renewal for the New Jersey Labor Licensing. NJA

Food and drink will be provided.

Pre-registration is required. ere will be no charge for AASP/NJ members; non-members pay $75. To register, call AASP/NJ Executive Director Charles Bryant at (732)922-8909.

42 | New Jersey Automotive | July 2018

New Jersey Automotive | July 2018 | 43

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WAYNE HYUNDAI 1244 ROUTE 23 NORTH WAYNE, NJ 07470 PH: 973-646-0333 FAX: 973-694-1700 waynehyundai.com

New Jersey Automotive | July 2018 | 45

AASP/NJ MEMBER SHOP PROFILE by Alana Bonillo

821 COLLISION Providing hands-on and personal service is the driving force behind 821 Collision, which opened its doors in North Haledon just six months ago. It may be one of the newest shops around, but its owners are no strangers to the collision repair industry.

Co-owners Ken Miller and Peter Kelly have 25 and 35 years of industry experience, respectively. Both men are local to the North Haledon area and teamed up in their own business venture when the opportunity to open the shop came about right in their backyard. Their facility, simply named after its street address of 821 Belmont Ave., specializes in high-quality repairs and friendly service. Rounding out their team is technician Javon Gonzalez-Ocasio.

Both share the same sentiment when it comes to what got them into this business – a lifelong appreciation for cars and technology. They are also committed to providing one-on-one care to their customers.

“I like to help people. When people get into an accident, they are in a time of need. I like helping people get through the process of getting their cars repaired and setting the claim,” relayed Kelly.

46 | New Jersey Automotive | July 2018

“

Ken Miller and Peter Kelly pose in front of their new shop, 821 Collision located in North Haledon.

[AASP/NJ] does a good job providing members with what they need.

”

As industry veterans, both Miller and Kelly have seen many changes in the industry over the years, including evolutions in vehicle construction and advanced driver safety systems. They know the importance of keeping up with equipment and training. Upon opening the shop, they immediately joined AASP/NJ. “[AASP/NJ] does a good job providing members with what they need,” said Miller, who added that he learned much from Todd Tracy’s discussion at the 2018 NORTHEAST® Automotive Services Show.

The next step for 821 Collision is to pursue OEM certifications, which Miller says will be accomplished in the next couple of months. He stressed the importance of certifications as being another way to get in front of the customer who cares about having their car repaired properly. In addition, they regularly attend I-CAR training and are in the process of obtaining Gold Class status.

They also take part in paint manufacturer certification classes to stay on top of industry standards.

Although it has only been six months since 821 Collision opened, the shop already has a strong presence through word of mouth. The owners actively use the internet and social media to reach out to customers. In addition, the complete renovation of the exterior and interior of the shop has already brought attention to the business.

“It’s a ‘wow factor’ when people come in here,” says Kelly.

“It’s a clean professional environment,” Miller added.

Miller and Kelly are happy to be at 821 Collision. They are proud of the work they do and could not be happier with their choice of profession.

“When you love what you do, it makes it easy. If you like where you go when you get up in the morning, it says a lot,” said Kelly.

Miller agrees.

“We have a good day, every day.”

NJA

New Jersey Automotive | July 2018 | 47

48 | New Jersey Automotive | July 2018

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COVER STORY

by Joel Gausten

Research &

REVENUE:

How the DEG is Dismantling the “Overhead” Myth Collision repair is difficult work, but there is a way to at least easily address errors in the systems used for it.

Established in 2007, the Database Enhancement Gateway (degweb.org) has worked to address labor time discrepancies found in the products offered by the industry’s three major Information Providers (Mitchell, Audatex and CCC). A free service since the very beginning, the DEG allows end-users to submit a Database Inquiry that will be received by an administrator and distributed to the IP in question for review and comment. The IP’s response is then monitored and posted on the DEG website as a reference. As of this writing, more than 12,000 Database Inquiries have been submitted, resulting in a

50 | New Jersey Automotive | July 2018

considerable correction in labor times and clarification of estimating inclusion for a variety of repair procedures. The DEG’s daily operating and administrative costs are funded through support by the Alliance of Automotive Service

Providers (AASP), the Society of Collision Repair Specialists (SCRS) and various sponsors.

In addition to working to bridge the communication gap between IPs and end-users, the DEG regularly distributes estimating tips to industry

Estimating Tip: CCC, Audatex and Mitchell OEM Information Website Access, Research and Diagnostic Costs Not Included in Labor Times OEM information website access cost is NOT INCLUDED in developed labor times in all three estimating systems. OEM technical information sites offer multiple subscription options available to end-users depending on their specific needs and time. Research and diagnostic labor time is also not included in published labor times.

Both labor and subscription cost would require an on-the-spot evaluation to be added on the repair plan/work order.

The estimating databases are all intended to be used as a GUIDE ONLY - it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and their unique cost of the vehicle damage repair.

members via email. In late May, one tip in particular hit home for shops desperately looking to receive appropriate compensation for one of the field’s most necessary practices (see inset box on facing page).

These are exciting words. As shops work to adequately research repair procedures for every vehicle that enters their bays, it becomes clearer each day that the time and costs associated with following this path is not a mere cost of doing business. According to DEG Administrator Danny Gredinberg, this estimating tip came as a result of a Database Inquiry concerning welding panel operations on a 2013 Mercedes-Benz SL550 (inquiry #10980 on degweb.org), which resulted in MOTOR stating that “part ordering and internet time is not included in the estimated work time.”

In addition to CCC’s official response, Gredinberg later received acknowledgements to this effect from Audatex and Mitchell.

“[Looking up repair information] is no different than when you’re doing diagnostics on a vehicle and have to troubleshoot to figure out what’s wrong. A simple bumper replacement can require time to research what is required. We have so many variables to deal with now; it’s no longer just a case of, ‘It’s just bumper damage. Let’s get it fixed and get it out.’ We have to look into it and see the kind of plastic it is, if we can repair certain areas and even if there is color code information available.

This all needs to be researched on the front end before we can actually do the repair. More can go into the administrative side than into the actual repair.”

With the recent verdict in the John Eagle Collision case in Texas putting a much-needed spotlight on the importance of OEM procedures, the DEG’s recent announcement has kept

AASP/NJ Executive Director Charles Bryant’s phone and email very busy.

“More and more shops are realizing that these services are needed and necessary to repair modern vehicles – and that these are things they are entitled to be compensated for,” he says. “I have received multiple reports of insurers paying for these services, but I’ve also heard about some insurers that refuse to pay for almost anything. In my opinion, it is just a matter of time before the insurance industry will have no choice but to pay for this type of service or the shops that are left New Jersey Automotive | July 2018 | 51

COVER STORY standing will simply refuse to perform the repairs.

“The bottom line is that the cars on the roads today must be repaired back to the condition they were in prior to the accident, and the only way to do that is for the insurer to fulfill their obligation to pay for all necessary repair procedures. If a shop didn’t perform certain procedures in the past, it may have caused the vehicle to suffer diminished value or the color to not match exactly right because the insurer didn’t want to pay to blend the paint. Now, automobiles require certain procedures to be performed per the OEM guidelines. If these procedures are ignored, the vehicle will not react in the same manner that it was designed to from the manufacturer and could very likely result in injury or death to the occupants.”

Bryant urges AASP/NJ members to utilize the DEG’s free services and keep up with the estimating tips it makes available.

“In my opinion, the DEG provides an invaluable service to the collision industry. Today’s vehicles are more complicated than ever before. Shops should be compensated for the time required to do the research on how to make the repairs to each particular vehicle – as well as any subscription cost, at a marked-up price, to obtain the information required.”

Gredinberg notes that the estimating tip has already resulted in positive outcomes for repairers.

“It’s another source of acknowledgement for a lot of users and a reason for them to consider the steps involved in performing the repair.”

First-time DEG end-users can rest assured that Gredinberg will direct their inquiry to IPs in a manner that

52 | New Jersey Automotive | July 2018

“I’d like to think that the DEG has motivated the Information Providers to do a better job on the front end. I think it is going to go on forever; as new models get released, there’s the constant need for end-user feedback.” ensures direct and useful feedback.

“The IPs like the DEG. It not only acts as a funnel, but it acts as a filter as well. This allows for a stronger inquiry to come through and for them to determine exactly what an end-user is looking for. Sometimes the correct question isn’t being asked or it is not being interpreted correctly. When we get inquiries, we’re able to go through them, help refine them to be very specific and see exactly what it wants to be. From there, we are able to make a much stronger case to the IP and get a more accurate response.”

More than a decade after its launch, the DEG remains personally significant to former AASP/NJ President Nick Kostakis, who was among the industry leaders who initially devised and developed the concept. Naturally, his facility continues to submit several Database Inquiries each year.

“We’re pretty conditioned to send the inquiry in when we find something that needs addressing. Most often, we’re getting positive fixes while the repair is in progress.”

Looking back at the Wild West days of 2006 when the industry lacked a streamlined solution to database labor time issues, Kostakis sees the thousands of inquiries received by the DEG – and the thousands of answers that wouldn’t exist without it – as an absolute success.

“I’d like to think that the DEG has

motivated the Information Providers to do a better job on the front end. I think it is going to go on forever; as new models get released, there’s the constant need for end-user feedback.”

While shop/IP relations have certainly improved thanks to the DEG’s existence, Kostakis will be the first to tell you that plenty of things are still broken – especially when it comes to third-party sources of repair procedure information.

“I find ALLDATA to be a great resource. The core product involves mechanical operations, but it goes beyond that now. The frustrating thing for us is that ALLDATA contains information and labor times derived at least partially from MOTOR. The CCC product contains times also derived from MOTOR. You would think that those two numbers coming from the same company would be in sync with each other. Very often, we find they’re dramatically different.”

It’s impossible to solve all of the industry’s problems with the touch of a computer key, but there are 12,000plus examples that illustrate that shops do have a place to turn for help. The DEG has proven to be an invaluable resource – and it doesn’t cost a shop a single dime. Imagine what could be accomplished if every repair facility in the country submitted just one Database Inquiry a month.

As Bryant says, “It only benefits the shops that use it.”

NJA

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LEGAL PERSPECTIVE

by Mitchell Portnoi

Mediation in the World of Business Litigation Certified by the Supreme Court of New Jersey as a Civil Trial Attorney

Mediation is a settlement technique whereby a neutral person, usually a retired judge or perhaps a very experienced litigator, is asked to review each party’s documents and proffered evidence, and assists each side in reaching a compromise and considered settlement of a pending lawsuit or claim. Mediation can come at any point in time, either at the very beginning of a dispute, or immediately prior to the scheduled trial after years of discovery and motion practice. It is most effective earlier in the litigation process before huge sums of money are expended for the exchange of discovery, before attorneys get deeply involved in motion practice and before deposition and expert fees become substantial.

At a time when attorney fees alone can be upwards of $700 per hour, even in New Jersey, the costs of protracted litigation can be staggering. The time to prepare a lawsuit and obtain the necessary discovery to properly prepare for litigation in court can be extraordinary. The courts are extremely busy, so even when the case is properly prepared and ready to proceed, it does not mean that the court will be available to hear your case or that your adversary will also be available and ready to proceed. It is not uncommon to have a case on the trial list that sits there for a significant period of time, and then for the court to indicate that no judge is available and that the case needs to be re-listed for a different date. That process can be repeated numerous times – especially when the case is a complex

54 | New Jersey Automotive | July 2018

What is “mediation,” and why is it so important in today’s legal climate? e answer quite simply is:

Money!

one and may take more than just a few days to try.

So why can’t a judge, sitting in a local or federal court, attempt to mediate, or try to settle a case? The answer here: Time. A mediator is paid to spend time on your case and your case alone. They can meet with not just the attorneys, but with the litigants themselves to attempt to get a case resolved. Sometimes a litigant needs to hear from a neutral person about not just the upside of litigation, but the potential downsides as well.

Oftentimes a litigant – and the attorney – have spent so much time and energy on a matter that they cannot see the whole picture, and they lose focus on the potential for a less than stellar result. An unbiased mediator can pull back the blinders and make both sides see the realities of the situation, and the possibilities of where this matter may be headed.

A number of vicinages in New Jersey have mandatory “Early Mediation” for Business Litigation. This has been a reasonably successful program for me and my business clients. It has saved my clients thousands of dollars on legal fees, and assisted them in an early resolution of matters that may have taken years to resolve. Speak with your attorney early about the possibility of an early mediation to your business dispute.

It could be worth a huge amount of money to you. If you have any questions, I can be reached at mportnoi@post polak.com or 973-228-9900 x-217.

NJA

WHY

?

Over $1 million of inventory located in a dedicated 8,000 sq. ft. wholesale warehouse Large multi-vehicle delivery fleet Multiple daily deliveries available Long-term dedicated wholesale staff with over 100 years combined parts experience Deep discounts Quality service Industry-leading order fill rate All major parts procurement platforms including PartsTrader, OE Connection, OPSTrax

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MEMBER 2329 RT 22 WEST, UNION, NJ 07083

New Jersey Automotive | July 2018 | 55

Diminished

Value:

INDUSTRY UPDATE by John Walczuk, ZB Negotiations

Vehicle Owners Lose Again — Part 1 of 2

We are seeing a trend where vehicle owners are at the mercy of insurance carriers who formulate their own interpretations of laws and rules. Some states are also guilty in this regard, as they adhere to archaic laws and possible interpretations that were established when a horse and buggy was the main form of transportation.

While any vehicle that is involved in an accident might have diminished value (DV), it is important for claimants to understand that such claims can only be pursued on a third-party basis.

Regardless of the source, the vehicle owner – and possibly other entities – are impacted with financial losses when their vehicle has been in an accident. This is evident when the vehicle owner attempts to trade or sell a vehicle that has a negative history. In those cases, many automotive dealerships will not accept it as a trade-in, will not try to sell the vehicle in their used car facility and (if accepted on trade) will opt to sell the car at a wholesale auction. This all comes with a direct loss to the consumer and can often result in an offer of 20 percent less on tradein than a vehicle without accident history.

In pursuing diminished value claims, one of the most

56 | New Jersey Automotive | July 2018

John Walczuk is the director of client services for ZB Negotiations. The company specializes in helping vehicle owners obtain fair market settlement offers for their totaled vehicles. John can be reached at John@ZBLLC.net or (516) 364-0713. frustrating methods used by insurance carriers is known as the 17C formula. This was established by the Georgia Supreme Court in November 2001 and was used as the method to settle a class-action suit involving 25,000 claimants. The formula assumes that all damaged vehicles have lost resale value; however, it limits the loss to 10 percent of the market value on the date of loss and then reduces the maximum 10 percent based on the degree/type of damage (as well as current mileage).

Remember, this was based on a class-action suit that pooled 25,000 vehicles regardless of age, model or purchase price. Consider a one-month- old vehicle that was purchased for $60,000 dollars with a repair cost of $30,000 dollars and noted frame damage. A certified vehicle appraiser might determine that this vehicle has a 35 percent diminished value, or $17,150 dollars. The 17C formula would likely be less than $6,000. While the example is extreme, it provides one of the obvious issues with using the formula. Two national carriers have adopted this method on all their diminished value claims and point to Georgia as the basis or give no justification for its use.

The State of New York falls into what we will call the

“archaic ruling” category. Possibly 100 years ago, an appellate court decision with respect to diminished value might have had merit, but it lacks logic or application today. Onehundred years ago, there were limited vehicle manufacturers, while today there are many (as well as large numbers of models available). The court’s decision to limit diminished value claims to only appreciating assets lacks merit today and only benefits the insurance carrier. Court rulings should have understandable merit and be logical and understandable.

Today, the average vehicle owner in New York State cannot find merit or logic in this outdated court ruling. One can accept that vehicles do depreciate or lose value over time in the normal course of use. However, accidents tend to accelerate that depreciation. The one-time event of an accident is the cause behind the accelerated loss in resale value and cannot be attributed to normal wear. This is especially true when the vehicle owner who purchases the vehicle has a history of replacement every three years and has no recourse but to absorb the excess loss. The insurance carrier who denies the diminished value claim based on this archaic court ruling just points to the court decision, and replies, “We are following the law.” The question we should be asking ourselves is, “What is right?” As one can only pursue diminished value claims against third-party carriers whose insureds are at fault, the innocent vehicle owner is again expected to bear the burden of another negligence based on this outdated ruling.

Look for Part 2 of this story in next month’s New Jersey Automotive. NJA *This article is not legal advice and may not reflect the opinions of AASP/NJ and Thomas Greco Publishing.

WE BRIDGE THE GAP We are different!

We provide a unique level of claims settlement services. This level of service is not offered by other vendors and helps to ensure positive valuation settlements.

Our company goes the extra mile to ensure your customer is satisfied. We will evaluate the insurance carriers initial offer AT NO COST, and if need be we will work as your customers agent and negotiate directly with the insurance carrier.

WHAT CAN WE DO FOR YOU? • Total Loss • Diminished Value • Loss of Use

CALL TODAY

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Let us help make your customer financially whole.

New Jersey Automotive | July 2018 | 57

WHAT SAY YOU?

What are your thoughts on consolidators/MSOs coming into New Jersey?

I think it’s inevitable. It’s definitely happening whether the shop owners want to hear it or not. Fortunately, I’m at an age where I’m accepting of it; it may benefit me to some degree.

That may not be what most want to hear.

AUGUSTA OAKLAND

It’s going to put all the momand-pop shops out of business, and it’s going to hurt bad.

People are already struggling because of Labor Rates. Once you get the big dogs in, that’s it – the little guys starve.

I think there are definitely disadvantages to larger operations. You lose that personal service, and you lose that quality with these bigger operations. As a small independent shop owner, I see every car that comes in and out of here. I sell quality.

No offense to the bigger shops, but bigger isn’t always better.

58 | New Jersey Automotive | July 2018

ORANGE

OLD BRIDGE

Well, I guess the good thing is they are buying up the little guys who can’t make any money in this state.

They are going to do what they want, so what we [shop owners] say doesn’t matter. I have absolutely nothing positive to say about it. We’re like a piñata, this business. They keep hitting us until we lose candy, and the MSOs think they will fix it. It won’t work.

SEWELL VINELAND

It really hasn’t affected me, as I have a steady customer client base. I’m second generation. Say my name and people know they are in good hands. The problem with MSOs is insurance companies will tell customers to go to them because it’s about pushing products. [They] don’t take pride in what they do.

LET US TURN THEM AROUND!

LYNNES

AUTO GROUP WHOLESALE DEPARTMENT

Genuine Service & Parts

SERVICE, SELECTION AND VALUE SINCE 1953

Delivering to the New Jersey/New York area.

Genuine Nissan parts are built to the same standards as Nissan vehicles. It’s no wonder they’re the driving force behind the most exhilarating vehicle on the road.

Contact New Jersey Automotive Sales Director Alicia Figurelli

7 experienced countermen and 12 drivers ready to serve

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Parts: 800-782-7597 E-mail: John@lynnes.com www.lynnesnissan.com Hours: M-F 7:30am - 6pm, Sat 7:30am - 2pm 5 Alva Street | Bloomfield, NJ 07003

ALICIA@GRECOPUBLISHING.COM T

WE KNOW WHAT YOU’RE THINKING. YOU WANT TO KNOW IF THE PART’S IN STOCK , HOW MUCH IT COSTS, AND WHEN IT’S GONNA GET THERE. We get it.

You want the best part for a Toyota, but you’ve got to know when and how much.

Well, now you can. In addition to tools that can help you find and order the right VIN-based parts, now you can see if it’s in stock, schedule the delivery, even see your shop’s net price from your participating Toyota Dealer.* Now you’re thinking: “Cool!”

ToyotaPartsAndService.com

©2014 Toyota Motor Sales, U.S.A., Inc.

For Toyota Genuine Parts please call this authorized local Toyota Dealer:

Glen Toyota 23-07 Maple Ave, Fair Lawn, NJ 07410 Toll Free: 800-444-1959 Direct: 201-791-1133 Fax: 201-703-5652 parts@glentoyota.com www.glentoyota.com

New Jersey Automotive | July 2018 | 59

Diagnostically speaking, there is no substitute.

Porsche technology.

Porsche Genuine Service & Parts.

Contact one of these authorized dealers.

Town Porsche 105 Grand Avenue Englewood, NJ 201-227-6505 Fax 201-227-6553 town-motorcar.porschedealer.com

Flemington Porsche 213 Route 202/31 Flemington, NJ 800-216-5124 Fax 908-782-9397 flemington.porschedealer.com

Porsche Princeton 3333 Route 1 Lawrenceville, NJ 609-945-1500 Fax 609-945-1501 princeton.porschedealer.com

Š 2018 Porsche Cars North America Inc. Porsche recommends seat belt usage and observance of traffic laws at all times.

60 | New Jersey Automotive | July 2018

Paul Miller Porsche 3419 Route 46 East Parsippany, NJ 973-227-3000 Fax 973-575-8396 paul-miller.porschedealer.com

Porsche Monmouth 280 Route 36 East West Long Branch, NJ 732-935-7600 Fax 732-935-7602 monmouth.porschedealer.com

Manhattan Motorcars 711 11th Avenue New York, NY 877-661-1586 Fax 646-473-0798 manhattan.porschedealer.com

ARANJ 2018 Officers

President Rodney Krawczyk Ace Auto Wreckers (732) 254-9816 aceautonj@comcast.net

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 Mike Ronayne Tilghmans Auto Parts (609) 723-7469 tilghmans@snip.net

Past President Bob Dirkes Dirkes Used Auto Parts (609) 625-1718 dirkesauto@gmail.com Executive Director Brian Snyder Auto Recyclers of NJ (609) 714-2339 brian@aranj.org

ARANJ 2018 Board of Directors David Yeager EL & M Auto (609) 561-2266 elandmauto@aol.com

Ed Silipena American II Autos (609) 965-6700 esilipena@yahoo.com

Norm Vachon Port Murray Auto (908) 689-3152 portmurrayauto@yahoo.com Dylan Rinkens East Brunswick Auto (732) 254-6501 ebautonj@comcast.net

ARANJ

The Automotive Recyclers Association of New Jersey

Wharton Insurance Briefs

Several of our clients have recently experienced some problems on Workers’ Compensation audits regarding the classification of employees. When you are preparing for your audit, you must assign each employee into the proper classification to avoid these problems.

There are several classifications that are typical to recycling operations.

There is Auto Dismantling, Iron & Steel Scrap Dealer, Store Auto Retail, Auto Garage or Repair, Outside Sales Person and Clerical.

You must have a clear separation of duties in order to combine any or all of these classifications. For example, you must have a separate office for Clerical, separate area for Store: Auto Retail (counter area) and the Auto Dismantling operations must be separated by fence or barrier from the Iron & Steel Scrap operations. There also can not be any intermingling of employee duties. If done correctly, there can be a major difference in premium. When an auditor contacts you to perform your audit, please don’t hesitate to contact me with any questions or concerns regarding the proper classification of your employees.

Mario DeFilippis, AAI Vice President 800-221-0003 (ext. 1320) 908-513-8588 (cell) mdefilippis@whartoninsurance.com

ADVERTISERS’ INDEX 1-800-NEW-PARTS ................................................12-13

Glen Toyota..............................................................OBC

Porsche Group ........................................................60

Accudraft ................................................................48

GM Group ..............................................................43

Post Polak ..............................................................55

Acme Nissan ..........................................................4

Hyundai Group ........................................................45

PPG ........................................................................3

Amato Agency ........................................................40

Innovative Solutions & Technology / Pro Spot ............IFC

Princeton BMW ......................................................47

Audi Group..............................................................32-33

Kemperle ................................................................IBC

Safety Regulations ..................................................36

Axalta Coating Systems ..........................................6

Klean Frame............................................................21

Sherwin-Williams ....................................................15

BMW Group ............................................................18-19

Lynnes Nissan East..................................................59

Subaru Group..........................................................26

BMW of Springfield..................................................29

Maxon Buick-GMC ..................................................53

Town Motors ..........................................................49

Classic Audi ............................................................23

Maxon Hyundai........................................................53

Toyota Group ..........................................................59

Collision Equipment Company..................................27

Maxon Mazda..........................................................55

Tri-State Luxury Collection ......................................8-9

Collision Equipment Consulting ................................37

Mazda Group ..........................................................62

Valtek......................................................................31

Dover Dodge Chrysler Jeep......................................16

Mike Kaufmann Dealer Group ..................................14

VW Group................................................................39

Empire Auto Parts....................................................21

MINI Group..............................................................41

Westbury Jeep Chrysler Dodge Ram SRT ................44

Fenix Parts ..............................................................24

Mopar Group ..........................................................38

Wheel Collision Center ............................................31

Flemington Audi ......................................................5

NUCAR....................................................................34-35

ZB Negotiations ......................................................57

Flemington Group....................................................28

Performance Ford Lincoln........................................59

Fred Beans..............................................................25

Polyvance................................................................10 New Jersey Automotive | July 2018 | 61

Superior service starts with superior parts.

Rely on what Mazda drivers already know-Genuine Mazda parts extend a car's life.

Designed specifically for Mazda vehicles Get the right part the first time We're an accurate, trusted resource as close as your phone Give us the opportunity to serve you Contact these Mazda dealers for all your parts needs: Maxon Mazda 2329 Route 22 West Union, NJ 07083 Phone: 800-964-7281 Fax: 908-851-5631

Nu Car Mazda 172 North Dupont Highway New Castle, DE 19720 Phone: 800-346-5283 Fax: 302-322-7135

62 | New Jersey Automotive | July 2018

Mazda of Lodi 130 Route 46 East Lodi, NJ 07644 Phone: 866-716-0511 Fax: 973-594-4933 www.mazdaoflodi.com

Wayne Mazda 1244 Route 23 North Wayne, NJ 07470 Phone: 973-646-0333 Fax: 973-694-1700 www.waynemazdafactoryparts.com

New Jersey Automotive | July 2018 | 63

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S EAR Y 0 R a3ir La WH VE O e, F iv r R D FO9-01 Pollitt

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G.T.

A GLEN TOYOTA PRODUCTION

ACCEPT NO SUBSTITUTES AND INSIST ON GENUINE TOYOTA PARTS

SAME-DAY, NEXT-DAY AND SATURDAY DELIVERIES • MULTIPLE DELIVERIES DAILY HOURS: MONDAY - FRIDAY 5:30am - 6pm • SATURDAY 8am - 4pm TOLL FREE 800-444-1959 • PARTS DIRECT 201-791-1133 • FAX 201-703-5652 www.glentoyota.com • parts@glentoyota.com Contact PARTS MANAGER PAUL CIMILLO for all your parts needs

•

pcimillo@glentoyota.com