The Best Compliment
Placard

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Greedy Dealers Pound New York
 Auto Leasing Brokers
By Sloan Schickler, Esq.

For the past six years I have represented the New York Automobile Leasing Brokers Association as an attorney and registered lobbyist in a fight to stave off the push by the Greater New York Automobile Dealers Association (“GNYADA”) and the local United Auto Works (UAW) to put the brokers out of business in New York.

Before the New York State legislature closed the session last week, both the Assembly and the Senate passed S.7553-A / A.3499-B (Carroll) (the “Bill”). The Bill is drafted in a complex manner so that the brokers cannot make the disclosures required in the Bill and the result is, if signed by the governor, the law will prevent the brokers from being paid, among other issues. As such the Bill is anti-competitive and violates the New York and U.S. Constitutions.

The Bill only permits a broker to be paid for its services by the dealer even though there are transactions that regularly occur since the pandemic in which the consumer makes the payment to the broker. Impossible. The Bill also requires the broker to disclose the amount of the broker’s fee in a written contract with the customer prior to the leasing of or sale of a vehicle. The hitch is existing law also requires a notification to the customer that it can cancel the contract within three days after the contract is executed. If as is usually the case, the customer were to sign the contract on delivery of the vehicle (because we all know this is the only time that all of the details of the transaction are ironed out including, price, make model and VIN in order to complete a contract), the customer can cancel the contract three days after he/she takes the car and the broker won’t get paid! Ridiculous.

Those are just a few of the legal snippets from an outrageously drafted Bill that will prevent the brokers from doing business in New York.

Sadly for New York State, the Bill may cost it approximately $5.4 billion in annual revenue generated by licensed auto brokers: figure an average of 10,000 cars each month or 120,000 cars a year, $45,000 average vehicle cost (which is a low average as most brokered vehicles are between $60,000 - $100,000) equals $5.4 billion!

The greedy dealers ranked 3 of the top 10 consumer fraud complaints in 2023 on the Attorney General of the State of New York (“NYAG”) press release dated March 4, 2024, with 3,533 complaints. This represents a whopping 37.2% increase over 2022. Notably, the NYAG press release does not contain any reference to complaints against brokers. As reported previously, the dealers have been admonished by the manufacturers to stop price gouging consumers. See  GM and Ford Article In fact, dealers made a fortune taking advantage of consumers and low inventory as a result of the pandemic. See NY Times Article.

As if price gouging was not enough for the dealers, over the past three months, the NYAG has secured $2.25 million in restitution and penalties from 7 dealers caught charging bogus fees upon lease buyouts by their customers. See AG Press Release 6-7-24. For the wealthy dealers, this is just a slap on the wrist and the cost of doing business.

Absurdly, the dealers and the union have claimed for years that the legislation is intended to protect consumers from the fraudulent activities of brokers. They have never come up with instances of rampant fraud on the brokers’ part except for one case of a bad apple in 2023 who was not a licensed broker and was prosecuted by the Queens district attorney.

Automobile brokers are a key part of the auto market. They are a trusted intermediary between customer and dealer, often speak the customer’s language and explain the deal terms. Brokers assist disabled customers who need special accommodations, are unable to visit a dealership or require extra assistance to obtain vehicle conversion accessories. Qualified dealers in New York and brokers in business for more than 40 years have developed clientele whom they service for the life of the vehicle. Broker business depends on repeat customers and word of mouth. Bad practices will lead to losing customers. Brokers search out the best deal for the consumer, so the consumer spends less on a car. Without brokers, customers likely will pay more.

Moreover, in 1995, the National Automobile Dealers Association (“NADA”) entered into a consent decree with the United States Department of Justice (“DOJ”) as a result of a complaint brought against the NADA alleging anticompetitive practices designed to lessen competition among car dealers.  U.S. v. National Automobile Dealers Association, Civil Action No. 95-1804 (HHG) (D.D.C.) Among the practices alleged was urging dealers to boycott auto brokers. Dealers sought to keep brokers out of the auto market because brokers were able to create transactions for consumers at lower cost to the consumer. The NADA Reduced Margins Task Force Report in 1994 recommended: “Refuse to do business with brokers or buying services. They inevitably do harm to new vehicle gross margin potential.” In the consent decree, the NADA agreed to abstain from such anticompetitive practices for 10 years. Just 15 years after the consent decreed expired, the GNYADA took up where the NADA left off. GNYADA’s March 4, 2021 Legislative Update stated: “[t]his week, the Association took another step forward in its effort to curtail this industry [brokers] by forming a special committee with the single task of passing sorely needed broker reform legislation.” Nowhere in the GNYADA newsletter and no memorandum in support of any of the bills introduced over the past 6 years contain concrete factual information explaining why broker activities require reform in New York. The bills are just a sweeping measure to put the brokers out of business, thereby removing any competition against dealers.

Sloan Schickler is a partner in the commercial finance law firm, Schickler & Schickler PLLC (www.schicklerlaw.com). Schickler, a veteran vehicle leasing, finance and bank attorney and the attorneys in her firm have decades of experience representing and protecting lessors, banks, captive and independent finance companies in all facets of the vehicle leasing and financing business. She has served as the NVLA Legal and Legislative counsel since 2017, is currently the only woman on the NVLA board of directors and is a supporter of Leasing News and sits on its Advisory Board. Sloan can be reached at sloan.schickler@schicklerlaw.com or 212-262-5297.

Sloan Schickler
SCHICKLER & SCHICKLER
1177 Avenue of the Americas, 5th Floor
New York, NY 10036
Direct Dial: 212-262-5297
Facsimile: 212-262-6298
https://schicklerlaw.com/

Schickler will be covering the conference for Leasing News. She is also presenting there.

Oct. 16-18: NVLA Conference, Clearwater Beach, Florida
https://www.nvla.org/page/2024conference

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New Hires/Promotions in the Leasing Business
and Related Industries

Christopher Cavaliere was hired as Equipment Finance Specialist, Globus Medical, Audubon, Pennsylvania. He is located in Phoenixville, Pennsylvania. Previously, he was Finance Sales Specialist, Siemens (September, 2022 - May, 2024); Finance Sales Account Manager, Philips Medical Capital (MPC). Full Bio:
https://www.linkedin.com/in/christopher-cavaliere-cec/details/experience/
https://www.linkedin.com/in/christopher-cavaliere-cec/

Natalie Jeanson was promoted to Credit Manager, CWB National Leasing,  Winnipeg, Manitoba, Canada. She joined CWB May, 2015, Senior Credit Analyst. Previously, she was Financial Service Advisor, Caisse Financial Group (April, 2011 - March, 2015).
https://www.linkedin.com/in/natalie-jeanson-b32884a0/

Darryl Kuriger was promoted to “…strengthen ABL Sales and Syndications Leadership Team for Wells Fargo. Darryl Kuriger and his team manage all ABL and middle market pro-rata loan syndications activities for commercial banking. Kuriger re-joined the company in 2023 after previously serving 22 years with Capital Finance. Kuriger also served as head of ABL for Truist Securities and head of ABL Capital Markets for Bank of America Securities. In his role as head of loan syndications, Kuriger supports all syndications activities across commercial banking, bringing both ABL and middle market bank loans to the capital markets." abfjouurnal.com
https://www.linkedin.com/in/darryl-kuriger-6916729b/

Jason Ugolini was hired as Manager, Business Development, Mazo Capital Solutions, Irvine, California. He is located in Mundelein, Illinois. Previously, he was at Meadowbrook Truck Sales & Leasing, starting 2006, promoted Credit Manager (2021 - 2024); Sales and  Marketing Coordinator/Dealer Representative, Cobalt Finance (2004 -2005).
https://www.linkedin.com/in/jasonugolini/

Lynn Whitmore was hired as Managing Director and Corporate Originations leader for Wells Fargo Credit Solutions, Boston, Massachusetts. "I lead a team that focuses on the origination of asset-based lending and equipment finance solutions for corporate clients. I am a 20+ year industry veteran, have held various leadership positions within Wells Fargo, and most recently led the origination and underwriting for Wells Fargo Capital Finance’s market-leading Retail Finance business." Abfjournal.com.
https://www.linkedin.com/in/lynn-whitmore-2a7a1914b/

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Leasing and Finance Industry Help Wanted

Balancing Your Efforts
By Scott Wheeler, CLFP

The number one strength of top originators in the commercial equipment finance and leasing industry may also be their number one weakness.

• Top originators move opportunities forward and set a sense of urgency to win and fund more transactions in the current month/quarter
• Top originators do not wait to make contact with their vendors and end-users. They act now rather than waiting.
• Top originators drive immediate results, but do they have the patience and foresight to build a sustainable long-term career?

Transitional periods remind originators that they must play the long game. Along with their short-term activities, top originators should have several long-term initiatives working which can change the trajectory of their careers.

In the words of B.K., "Top originators have the drive to deliver immediate results and the patience to build a long-term successful career. Top originators understand that patience is a virtue."

A seasoned, top producing, originator working for an independent industry participant, recently stated:

• His number one priority is posting monthly results.
• His greatest long-term opportunity, within the 2024 market, is building new relationships with larger vendors and end-users. He is winning these relationships by creating specific programs designed to provide exceptional services. These relationships take time. These relationships require industry expertise. The development of just a handful of these relationships will enhance the trajectory of his career. These relationships are always important and transformational. In 2024, these relationships are most accessible to originators that lead with value rather than commoditized, plain vanilla, offerings. These relationships are worthy of his time and effort.

Scott A. Wheeler, CLFP
Wheeler Business Consulting
1314 Marquis Ct.
Fallston, Maryland 21047
Phone: 410 877 0428
Fax: 410 877 8161
Email: scott@wheelerbusinessconsulting.com
Web: www.wheelerbusinessconsulting.com

I will be presenting a seminar next week at the NEFA's Annual Baltimore. Maryland Crab Feast June 20th "Establishing a Sales Strategy and Team for 2024 and Beyond."  Hope to see you there.
For more information: https://web.cvent.com/event/9c24a3e1-ab1c-47f1-9c5a-8a5ab730ae21/summary

 

 
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Mapped: Where Tesla and BYD Make Their Cars
by VisualCapitalist

In 2023, Tesla and BYD were the world’s two largest electric vehicle (EV) companies by a large margin, holding 19.9% and 17.1% market shares respectively.

With no other company able to match their scale, these two automakers have found themselves locked in competition for the global EV crown. In Q4 2023, BYD outsold Tesla for the first time ever by 41,000 vehicles (526,000 vs. 485,000). In Q1 2024, however, their positions were switched after Tesla outsold BYD by 87,000 vehicles (387,000 vs. 300,000).

To gain insight into this rivalry, we’ve visualized the locations of both companies’ present and future EV factories, along with their estimated maximum annual output. Figures come from a variety of sources, and represent the latest information pertaining to planned production facilities (as of April 2024).

Tesla’s EV Factories

Starting with Tesla, this graphic highlights the locations of their four operational factories. Gigafactory Shanghai is the largest in terms of production output, at 750,000 vehicles per year.

Note that Gigafactory Nevada is not on this list because it produces battery cells, rather than finished vehicles

Tesla EV Factories List

Tesla’s China factory is unique in that it’s fully owned by Tesla itself, rather than a joint venture with a local company.

Looking to the future, Tesla’s next factory will be Gigafactory Mexico, which was announced (with few details) in March 2023. According to reporting by Electrek, the Mexican government is eager for the factory to begin construction, despite CEO Elon Musk voicing concerns about today’s high-interest rate environment.

BYD’s EV Factories

Although EV demand is not growing as quickly as it was in previous years, BYD is putting the pedal to the floor when it comes to global expansion. The company has announced factories in various regions including Europe, Southeast Asia, and Latin America, all to be completed within this decade.

BYD produced over 3 million electric vehicles in 2023 (BEV, PHEV, and HEV). Given that it had no international factories running during that year, we assume that BYD has the capacity to produce at least 3 million vehicles in China.

Government Subsidies Help Fuel Expansion

If you’re wondering how BYD is funding these ambitious plans, consider this: a recent study by Germany’s Kiel Institute determined that BYD has received over $3.7 billion in subsidies from the Chinese government.

For perspective, this online subsidy tracker reports that Tesla has received $2.8 billion in government subsidies. A large share of this amount ($1.6 billion) was awarded by the state of Nevada, which is where Tesla’s first gigafactory is located.

Source: Visualcapitalist.com

Cavalier King Charles Spaniel
Midvale, Utah Adopt-a-Dog

Chip
Male
Small, 13 lbs.
Tricolor (Brown, Black & White)
Adult
Coat Length: Medium
Health:
Neutered, Vaccinations up-to-date
Good in a Home
  with Other dogs, Cats
Prefer a Home without
   Children

REQUIREMENT- NO KIDS. Dogs ok. Cats ok. Someone home much of the time preferred. Must have at least one other well adjusted dog in his home. Adopter must be patient and continue to work with him on housetraining. Adopter must be patient as he does take time to warm up to new people.

Sweet Chip is ready for his furever home! Chip is a former breeding dog. He has not had a lot of socialization and is quite shy and takes time to warm up to new people. He does not like small children at all and will chase them and nip at them so he cannot have any children in his forever home.

Chip is doing well on his house training as is using a dog door but since he was only recently neutered, he will try to mark which the foster family is working on with the use of a belly band if they are not with him.

Chip is great with other dogs and is most confident when with another confident dog. We do not feel he will do well as an only dog so another well adjusted, confident dog is a requirement to adopt Chip.

Chip is a petite little guy at just 13 lbs. He had a great checkup and is heart clear. He is being treated for severe ear infections in both ears and he lost a few teeth at his neuter and dental.

Chip is a sweet little guy who will thrive in a calm environment. He has had a hard life so far and will need a loving, patient home to help him blossom!

If you would like to apply to adopt Chip and meet the requirements you can find our application on our website www.cavaliercrazyrescue.org

Cavalier Crazy Rescue
Midvale, Utah
cavaliercrazyrescue@gmail.com
http://www.cavaliercrazyrescue.org

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As a valued member of our community, we wanted to ensure that you are among the first to take advantage of our exclusive Early Bird offer.

This year's conference promises to be our most exciting yet, with an incredible lineup of industry presenters, new networking opportunities, and inspiring keynote by Michelle "Mace" Curran, combat veteran former USAF Thunderbird Lead Solo pilot, sponsored by 1st Source Bank.

Register early and secure your spot at this prestigious event! We can't wait to see you in sunny Clearwater Beach, Florida!

https://www.nvla.org/page/2024conference

Sloan Schickler, Esq., Schickler & Schickler, wlll be covering the conference for Leasing News. She is also presenting there.

News Briefs

World Bank sees rosier growth outlook
    2.6 percent this year
https://www.bostonglobe.com/2024/06/11/business/world-bank-growth-outlook/

Fed Is in No Rush to Cut Rates
    as Economy Holds Up
https://www.nytimes.com/2024/06/11/business/economy/fed-interest-rates-inflation.html

Mark Cuban turned 91% of his employees into
    millionaires when he sold a company for $5.7 billion
https://www-cnbc-com.cdn.ampproject.org/c/s/www.cnbc.com/amp/2024/06/07/mark-cuban-how-i-turned-most-of-my-companys-employees-into-millionaires.html

Baltimore Shipping Channel Fully Reopens
    After Massive Cleanup
https://www.axios.com/2024/06/11/baltimore-shipping-channel-fully-reopens-key-bridge

Sonoma, Napa county venues are warning
    about uptick in inflated, fake tickets – How to Avoid
https://www.pressdemocrat.com/article/news/ticket-scams-hidden-fees-concert-venues/

Mistral, a French A.I. Start-Up,
    Is Valued at $6.2 Billion
https://www.nytimes.com/2024/06/11/business/mistral-artificial-intelligence-fundraising.html

U.S. Bans Imports From 3 Chinese Companies
    Over Ties to Forced Labor
https://www.nytimes.com/2024/06/11/business/economy/us-ban-china-uyghur-labor.html

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First Came ‘Spam.’
    Now, With A.I.,  We’ve Got ‘Slop
https://www.nytimes.com/2024/06/11/style/ai-search-slop.html

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Sports Briefs---

Steady decline in youth hockey participation
  in Canada raises alarm about the future of the sport
https://www.pressdemocrat.com/article/trending/steady-decline-in-youth-hockey-participation-in-canada-raises-alarm-about-t/

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California News Briefs---

Historic Berkeley race track holds final event
   Animal-welfare groups pleased to see it go
https://www.eastbaytimes.com/2024/06/09/golden-gate-fields-last-race-protest/

Mahan: The answer to solving San Jose’s
homeless problem? All of the above
https://www.eastbaytimes.com/2024/06/08/opinion-the-answer-to-solving-san-joses-homeless-problem-all-of-the-above/

Food is expensive, but not at California's
extreme discount' grocery store
https://www.sfgate.com/food/article/grocery-outlet-bay-area-discount-market-19476872.php

What's on the paper slips that Disneyland
members pass each other?
https://www.sfgate.com/disneyland/article/paper-slips-disneyland-cast-members-19474290.php

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Gimme that Wine

 

http://www.youtube.com/watch?v=EJnQoi8DSE8    

Wildfires destroyed this Napa winery.
   It’s finally reopening — with $175 tastings
https://www.sfchronicle.com/food/wine/article/signorello-napa-wildfire-19428919.php

French family acquires majority stake
Williams Selyem winery
https://www.pressdemocrat.com/article/industrynews/williams-selyem-faiveley-sonoma-winery-acquisition/

Christie’s to Auction Rare Wines, Including
Smith-Haut-Lafitte Made for King Charles III
https://www.winespectator.com/articles/wine-auction-christies-king-charles-smith-haut-lafitte-raby-castle

A $500 tasting and a mini theme park:
Here’s what’s new in Wine Country
https://www.sfchronicle.com/food/wine/article/napa-sonoma-openings-summer-19481961.php