New Jersey Automotive November 2015

November 2015$595

THE OFFICIAL PUBLICATION OF THE ALLIANCE OF AUTOMOTIVE SERVICE PROVIDERS/NEW JERSEY (www.AASPNJ.org)AND THE AUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY (www.ARANJ.org)

TM

www.grecopublishing.com

REMOTEESTIMATES:An Unfortunate Situation

REMOTEESTIMATES:An Unfortunate Situation

4 | New Jersey Automotive | November 2015

New Jersey Automotive | November 2015 | 5


P.O. Box 734 Neptune, NJ 07753

EXECUTIVE DI REC TORCharles Bryant732-922-8909 / [email protected]

2013 - 2015 OFFICERSPRESIDENTJeff McDowell, Leslies Auto Body732-738-1948 / [email protected]

COLLISION CHAIRMANDave Laganella, Peters Body and Fender201-337-1200 / [email protected]

MECHANICAL CHAIRMANKeith Krehel, Krehel Automotive Repair, Inc.973-546-2828 / [email protected]

TREASURERTom Elder, Compact Kars, Inc.609-259-6373 / [email protected]

SECRETARYThomas Greco, Thomas Greco Publishing, Inc. 973-667-6922 / [email protected]

BOARDJerry McNee, Ultimate Collision Repair, Inc. 732-494-1900 / [email protected]

Sam Mikhail, Prestige Auto Body908-789-2020 / [email protected]

Ted Rainer, Ocean Bay Auto Body732-899-7900 / [email protected]

Anthony Sauta, East Coast Auto Body732-869-9999 / [email protected]

Randy Scoras, Holmdel Auto Body732-946-8388 / [email protected]

Anthony Trama, Bloomfield Auto Body973-748-2608 / [email protected]

BOARD ALLIEDJoe Amato, The Amato Agency732-530-6740 / [email protected]

Mike Kaufmann, Advantage Dealer Services973-332-7014 / [email protected]

PAST PRESIDENT ATTENDINGTom Elder, Compact Kars609-259-6373 / [email protected]

PUBLISHERThomas Greco ([email protected])DIRECTOR OF SALESAlicia Figurelli ([email protected])EDITORJoel Gausten ([email protected])MANAGING EDITORJacquelyn Bauman ([email protected])ART DIRECTORLea Velocci ([email protected])OFFICE MANAGERDonna Greco ([email protected])CONTRIBUTING EDITORSCharles Bryant Tom Greco Jeff McDowellMitch Portnoi Dave Laganella Ron Ananian

Published by: Thomas Greco Publishing, Inc.244 Chestnut Street, Suite 202, Nutley, NJ07110Corporate: (973) 667-6922 / FAX: (973) 235-1963

www.grecopublishing.com

VOLUME 45, NUMBER 11 | November 2015

10 OUT OF BODY (AND MECHANICAL) EXPERIENCES12 PRESIDENTS MESSAGE16 EXECUTIVE DIRECTORS MESSAGE

20 COLLISION CHAIRMANS MESSAGE22 I-CAR CALENDAR66 NJA ADVERTISERS INDEX

NEW JERSEY AUTOMOTIVE is published monthly and is sent to AASP/NJ and ARANJ members free of charge. Subscriptions are $24 per year. NEW JERSEYAUTOMOTIVE is published by Thomas Greco Publishing Inc., 244 Chestnut St., Nutley, NJ 07110. The editorial contents of NEW JERSEY AUTOMOTIVEare copyright 2015 by Thomas Greco Publishing Inc. and may not be reproduced in any manner, either in whole or in part, without written permission from the publisher and/or editor. Articles in this publication do not necessarily reflect the opinions of Thomas Greco Publishing Inc. Cover and Images courtesy of www.istockphoto.com.

The Alliance of Automotive Service Providers/New Jersey

Joe Amato, Sr.Ron AnanianJim Bowers

Charles BryantDon ChardGuy Citro

Ed DayDave Demarest

Tom ElderBob Everett

Thomas GrecoRich Johnson Wes KearneyNick KostakisJim KowalakJoe Lubrano

Michael LovulloSam Mikhail

Ron MucklowGeorge Petrask

Russ RobsonJerry RussomanoGeorge Threlfall

Cynthia TursiLee VetlandPaul VigilantRich WeberBrian Vesley

Glenn VillacariStan Wilson

HALL OF FAME

CONTENTS

VENDOR SPOTLIGHT by Joel Gausten24 Quality in the Millions: Flemington Audi/Volkswagen/Porsche Scores in Wholesale

NORTHEAST SPOTLIGHT by Jacquelyn Bauman28 Early Vendor Interest Points to Most Successful Show YetLOCAL NEWS30 Aluminum Meetings Give AASP/NJ Members a Glimpse into the Future by Jacquelyn Bauman32 Final 2015 Cars and Coffee Breaks RecordsNATIONAL NEWS by Joel Gausten36 Emissions Scandal Overwhelms VolkswagenLEGAL PERSPECTIVE by Mitchell Portnoi, Esq.40 Getting a Divorce?

INDUSTRY UPDATE by Jacquelyn Bauman44 Smart Cards: How Will They Affect Our Industry?

FEATURE by Joel Gausten48 Rates and Reality: What a Changing Insurance World Means for You

COVER STORY by Jacquelyn Bauman54 Remote Estimates: An Unfortunate SituationAUTOMOTIVE RECYCLERS ASSOCIATION OF NEW JERSEY57 Wharton Insurance BriefsNO BRAKES by Ron Ananian58 The Price of AdmissionAASP/NJ NEW MEMBER SHOP PROFILE by Joel Gausten60 The Wreck Room Collision


OUT OF BODY (AND MECHANICAL) EXPERIENCES

On the day I am writing this, Playboy has announcedthat they are no longer going to feature nudity in their mag-azines. Mostly because, in the words of their CEO, Yourenow one click away from every sex act imaginable for free.And so its just pass at this juncture. No more Playboy centerfolds? Another American tradi-tion laid to rest by the Internet. Now, before you accuse meof being an old guy whos afraid of technology, allow me tobrag that I was the first person I knew to have a Mac com-puter in 1984. I was also the first person I knew who had aniPod, an iPad, a DVR, etc. We were also one of the firstpublications of our kind to put full issues on our website.Clearly, I am no technophobe. But dammit, there are lots ofthings that technology has ruined or destroyed that I miss.Reading about Playboy reminded me of one of those writing letters. I think the very first letter I ever wrote was the same asmost of you. You know the one Im talking aboutthe one

to Santa Claus. Now, I dont know about you, but I never re-ally got a reply from the big man. But come Christmas Day,I assumed he must have received my letter, since most ofwhat was on my list was usually there. Between that timeand college, I didnt have time to write many letters. (I wastoo busy trying to find my brothers Playboys.) Once I gotto college and learned that I had a little bit of talent forpiecing together semi-intelligent words, I began writing let-ters on a pretty frequent basis. Nothing special, mostly togirls I liked or relatives who lived in other places. The first truly meaningful letter I remember writing wasactually the result of a bet. It was also a little risqu, as theysay. In the early 80s, with the explosion of videotape rentalstores, it really wasnt that difficult to view adult films especially since I had two older brothers! Being a young,studly man, I became quite infatuated with an actressnamed Kay Parker. One day, I just happened to comeacross a magazine that listed the actual addresses where

by THOMAS GRECO,PUBLISHER

My Baby Wrote Me a Letter


you could write to some of these stars. Needless to say,when I saw Kay Parkers, my brother dared me to write hera letter. Thinking that I had nothing to lose, I did. If I recall,it was a very proper letter, stating how much I admired heracting and the like. I mailed it and never gave it a secondthought. That is, until a few weeks later when a letter post-marked Marina del Rey, CA came in the mail. Kay Parkerresponded! You know how I knew it was from her? Half thewords were misspelled. Seriously. But still! It actually wasvery nice. She was very thankful and appreciative. Believeit or not, we became pen pals after that and correspondedfor the next decade. When my brother asked me who Iwanted at my bachelor party, I said Kay Parker. Well, thatdidnt happen. But she did call me about a week before mywedding to wish me luck. My wife was not thrilled. (Nor willshe be when she reads this.) I hadnt really thought aboutKay Parker for a long time until I read last year that she washomeless. She had stopped making films in the mid 80sand became a faith counselor. At 70, she unfortunately experienced severe financial difficulties, which forced herout of her home. There was a fund for her, and I donated a small sum. She emailed the people who donated, thank-ing them. When I received my email, I asked her if she remembered me. She said she did, but Im not sure. Last I

checked, she had found a home and was back in counsel-ing. Good for her. My next memorable letter was to musician Willy DeVillein 1985. Ive told this story before in these pages, so Ill justbriefly recount it. After he walked off the stage at a show inAsbury Park saying, There are a thousand other places Idrather be, I wrote him a letter saying how disgusted I waswith his performance. A few weeks later, his wife called myoffice and berated me for 15 minutes. Keep in mind, thiswas a guy who was world-famous at the time. I was too sur-prised to reply to the wife, but about a year later I read hefiled for bankruptcy. I chopped up one of his records,wrapped it in a dollar and sent it to him. Unfortunately, hiswife killed herself in 2001 and Willy died of cancer in 2009.I just finished reading a biography of him; it basically saidhe was an ass to everyone he met. I dont feel so bad. The next letter was another one that I never expected areply from. I am a huge New York Giants fan, and one ofmy favorite all-time players was Phil Simms. When the Gi-ants cut Simms in 1993, I fired off an angry letter to Giantsowner Wellington Mara. Maras family has owned the Gi-ants since 1925. He had been there from the very start. Youcan imagine how many letters the owner of a team like the

continued on page 65

Id like to share a conversation Ihad recently with a fellow shop ownerabout a hypothetical situation thatcould seriously affect our industry. Im doing this to not only spreadawareness, but also to get opinions

throughout our industry to see how oth-ers might handle this interestingdilemma. Say at the conclusion of a repair, acustomer pays you with a check theyhad received from their insurance

company following the collision. Thecustomer presents the check to you,endorses it over to you, receives thecompleted vehicle and drives away.You then deposit the check and con-sider the job completeuntil a coupleof days later, when the bank calls. According to the bank, the checkyou tried to deposit into your businessaccount had already been depositedand posted. It turns out that the cus-tomer had deposited the check intotheir personal account using the banksmobile app, then used the same checkto pay for the job. If youre not famil-iar, many banks these days utilize mo-bile check depositing in their apps,which alleviates the need to visit ateller or even an ATM. By simply takinga photo of the front and back of thecheck on their phone, then uploading itto the bank through the app, cus-tomers can deposit checks. Im not sure how one would handlethat sort of situation. You cant go tothe insurance company; they issuedthe check correctly to their insured.You have no leg to stand on with thebank, since the check correctly postedafter the customer deposited it. And ofcourse, the customer is in the wind, sotheres no real recourse there. Untilyoure able to contact the customerand hopefully fight for whats rightfullyyours, you essentially did the job forfree. Im putting forth this hypotheticalsituation to let others know that it mightbe happening soon; unfortunately, Ihonestly dont know how wed be ableto avoid it. Its not like you can call theinsurance company and ask for thestatus on a check they issued. Not onlywould they never disclose informationabout an insured to a third party, butimagine the amount of time youd losedealing with them if they were actuallyable to give this to you. And you cantverify the check with the bank for thesame reason. Do you stop takingchecks as payment? Place a hold on


PRESIDENTS MESSAGE

A NEW ERA OF BAD CHECKSby JEFF MCDOWELL



EXECUTIVE DIRECTORS MESSAGE

by CHARLES BRYANT

CHANGE IS FINALLY

POSSIBLE

For the first time in a long time, Ican say with confidence that thingsare looking up. Now, I am not sayingthat the problems facing the collisionindustry are solved, but we are nowcloser than ever to resolving many ofthe issues that have plagued us. For years, I have written articlesand tried to encourage the collisionindustry to document the occurrencesof improper conduct by thoseinsurers that have simply refused tonegotiate in good faith and pay shopsa fair and reasonable amount toproperly repair vehicles. Some shopsmade the effort and sentdocumentation of such improperactivity, but most have just rolled withthe punches and pretty muchaccepted whatever the insurers havebeen willing to give them. As a result,the Labor Rates that insurers paytoday are less than what lawnmowerand bicycle repair shops charge,even though cars often cost upwardsof $10,000 to $20,000 to repair.Despite this, few collision shopsstood up and fought back. For the lifeof me, I could not understand why. Well, I think I have finally figured itout. First, the collision industry ismade up of a lot of passive peoplewho truly just want to repair damagedvehicles, live a good life and make afair and reasonable profit so they canpay their bills and feed their families.A lot of these shop owners areactually prior technicians who worked

their way up to becoming shopowners because they were good withtheir hands. But now, they are forcedto learn how to run and manage abusiness rather than continuing to fixcars. Additionally, they are now facedwith having to fight with insurancecompanies to get paid for what theydo. When an insurance companyhires a new employee who will bewriting estimates and negotiating thecost of repairs, it is likely that the firstthing they do is send that hire toschool and put him or her throughrigorous training. They actually teachthat estimator how to say no, and itseems as though most shops andmanagers have surrendered to thismethod. Maybe this is because shopowners have tried to addressproblems on behalf of their customersand ended up going nowhere timeand time again. For some reason,many shop owners seem to think thatthey have to take on their customersbattles or problems (such as notgetting paid from an insurer for what ittakes to repair their vehicle safely andproperly) when it is the customer whopays the premium. I often hear shopowners say things like, I cant tell mycustomer that they are going to haveto pay more than their deductible toget their car repaired because theirinsurer will not pay the full cost torepair their vehicle. HELLO? Sincewhen did the shop owner adopt his orher customer and become responsiblefor the difference between what theinsurer pays to repair a vehicle andwhat it actually costs to do it right? Ithink I now know where the missinglink is in this equation. For some reason, many shopowners actually think that an insurerthat comes out to see a damagedvehicle owes the shop what it takes torepair it. In reality, the insurancecompany doesnt owe the shop

anything - the carrier owes theinsured or vehicle owner. The insuredor owner then owes the shop. Toomany shop owners have this mixedup. As a result, repair professionalsacross the country are absorbing thedifference between what an insurerpays and what it actually takes torepair the vehicle. The reasoning isthat they are afraid that if they telltheir customer that he or she has topay this amount, they will lose him orher. Practices like this are what got usto where we are today. The problemis, the shop is not a party to thecontract of insurance. Therefore,insurers can do almost anything theywant to the shop and suffer little or noramifications. So, whats the answer?Shops must change their ways. Like it or not, change isinevitable. Some shops have finallyrealized that they must fight back ordie. As a result, collision shops havefinally figured out a way to stopabsorbing the difference. There arelawsuits popping up against numerousinsurance companies across thecountry, and shops are winning. Thishas already started to have a positiveeffect. In recent months, more andmore insurers have been willing tonegotiate higher rates. The resultsfrom surveys are providing shops withthe documentation they require tosupport their positions on LaborRates and the need for certain repairprocedures that cannot be ignored. Because the collision industryhas allowed things to get so bad, it isgoing to take a lot of hard work to turnthings around. The changes that areneeded cannot be accomplished bya few. It is going to take persistenceand a united effort to keep thisprogress moving in the right direction.There are people in trade associationsacross the country working hard tocorrect the many problems mentionedin this message. The movement has

already been started by a few whohave jumped out in front of the bus, soto speak. My purpose for writing this is toattempt to send a message to theentire industry. Now is the time tocome together and support eachother. United we stand, divided wefall has never been a strongerstatement than it is right now. This isthe first time in many years that I canhonestly say that change is starting tooccur. I am begging for the collision

industry to embrace this opportunityand join together to make thingsbetter. If you are a collision shopreading this message and you are nota member of a trade association, Iurge you to stop what you are doingand go sign up today. If anyone isinterested in joining AASP/NJ or justwants to discuss anything mentionedin this piece, I can be reached at(732) 922-8909.

Heavenly BodyworksWoodbridge

Key Auto BodyMatawan

Freehold CollisionFreehold

Cross Town CollisionNew Brunswick

County Line Auto BodyHowell

Welcomes ournewest members:

EXECUTIVE DIRECTORS MESSAGE


NJA

and

Micro-Mix Paintand

Materials Calculatorin Bergen, Passaic, Essex andHudson Counties in New Jersey.

CALLOffice: (973) 696-3176or Cell: (201) 452-0987

Mike LovulloDistributor for

If you havent already heard, theMultidistrict Litigation that has had theindustry buzzing for a while recentlyhad its lead case dismissed. I know

that for a lot of people, this is the laststraw. But when you are literally upagainst City Hall, you cant stop thefight. As frustrating or hard as it may

seem (or how difficult it may be), itsthe only direction we can go in to getthe rate changes and the concessionswe need to stay in business and besuccessful. When the fight seems hard, thatswhen you need to turn to AASP/NJ.We are always working as anassociation to improve the industry. Ifyou are considering stepping up to theplate and entering into a legal battlewith an insurer, you are not alone.Contact AASP/NJ Executive DirectorCharles Bryant. We might just havesomething that can help you in yourbattle. We are gearing up to help outour membership in the best way wecan into the future. To find out moreabout the associations projects orinitiatives, contact one of your Boardmembers and ask to come to a Boardof Directors meeting, held the firstTuesday of every month. We wouldlove to see you there.

COLLISION CHAIRMANS MESSAGE

DONT GIVE UP HOPEby DAVE LAGANELLA


LET US TURNTHEM AROUND!

ContactNew Jersey Automotive

Sales Director Alicia Figurelli

[email protected]

NJA

NOVEMBER 2Problem Solving for Workflow ChangesVirtual Classroom

NOVEMBER 4Sectioning of Steel Unitized StructuresCompact Kars, ClarksburgOverview of Cycle Time Improvements for the CollisionRepair ProcessVirtual ClassroomMatching the Repair to the TeamVirtual Classroom

NOVEMBER 52015 Ford F-150 Structural Repair Training Course (FOR06-1)Holiday Inn & Suites, Parsippany2015 Ford F-150 Structural Repair Training Course (FOR06-2)Holiday Inn & Suites, Parsippany

NOVEMBER 9Aluminum Exterior Panel Repair and ReplacementKeystone Automotive, PalmyraAdvanced Steering and Suspension Systems Damage AnalysisKeystone Automotive, Palmyra

NOVEMBER 10Automotive FoamsComfort Suites, MahwahAdhesive BondingKeystone Automotive, PalmyraPlastic and Composite RepairKeystone Automotive, PalmyraStructural Straightening SteelVirtual Classroom

NOVEMBER 11Rack and Pinion and Parallelogram Steering SystemsCollisionMax, Pennsauken2015 Ford F-150 Structural Repair Training Course (FOR06-1)Keystone Automotive, Palmyra

2015 Ford F-150 Structural Repair Training Course (FOR06-2)Keystone Automotive, PalmyraWaterborne Products, Systems and ApplicationVirtual Classroom

NOVEMBER 12Full-Frame Partial ReplacementKeystone Automotive, PalmyraVehicle Technology and Trends 2016Keystone Automotive, PalmyraAluminum Exterior Panel Repair and ReplacementSomerset Vocational High School, BridgewaterSuspension SystemsVirtual Classroom

NOVEMBER 13Color Theory, Mixing Toners and TintingKeystone Automotive, Palmyra

NOVEMBER 14Corrosion ProtectionReliable Automotive Equipment, BelfordVehicle Technology and Trends 2016Reliable Automotive Equipment, Belford

NOVEMBER 17Steel Unitized Structures Technologies and RepairReliable Automotive Equipment, BelfordPlastic and Composite RepairPennco Tech, BlackwoodCollision Repair Overview for the Chevrolet Corvette Z06Virtual Classroom

NOVEMBER 18Squeeze-Type Resistance Spot WeldingMetropolitan Car-o-liner, MahwahColor Theory, Mixing Toners and TintingReliable Automotive Equipment, BelfordHazardous Materials, Personal Safety and Refinish SafetyCollisionMax, PennsaukenColor Theory, Mixing Toners and TintingPennco Tech, Blackwood

NOVEMBER 19Plastic and Composite RepairReliable Automotive Equipment, BelfordSqueeze-Type Resistance Spot WeldingPennco Tech, BlackwoodSteering and Suspension Damage AnalysisVirtual Classroom

NOVEMBER 24Hazardous Materials, Personal Safety and Refinish SafetyComfort Suites, MahwahMeasuringReliable Automotive Equipment, BelfordWelded and Adhesively Bonded Panel ReplacementVirtual Classroom

NOVEMBER 30Aluminum Exterior Panel Repair and ReplacementPennco Tech, BlackwoodCollision Repair for Toyota, Lexus and Scion VehiclesPennco Tech, Blackwood

CALENDAR

22 | New Jersey Automotive | November 2015 For more information, visit www.i-car.com

If you want to know if a wholesale parts provider is able toget you what you need, a good first clue to keep in mind is howlong that dealer has been in business. Founded in 1976, the Flemington family of dealerships hassolidified its reputation in the New Jersey automotive industrythrough incomparable customer service. The chain is comprisedof 17 franchises carrying Ford, Lincoln, Nissan, Porsche, Volk-swagen, Audi, BMW, GMC, Buick, Chevrolet, Chrysler, Dodge,Jeep, Ram Trucks, Infiniti, Subaru and Cadillac. Currently boast-ing $6.5 million in annual parts sales to the Garden State autobody community, Flemington Audi/Volkswagen/Porsche exem-plifies the high level of quality and professionalism that has keptthe Flemington name at the top for nearly four decades. Under the guidance of Parts Manager Rich Muir, the Flem-ington Audi/Volkswagen/Porsche wholesale operation providesproducts from its $950,000 inventory to a 60-mile radius via 23delivery trucks. Muir is joined in the department by seasonedparts veterans Brian Temples, Paul Hunt, Fred Laschi, BrianMcEvoy and Tim Arencibia. With the parts team working to en-sure that shops receive quality parts with every order, FlemingtonAudi/Volkswagen/Porsche maintains strong customer outreachthanks to Wholesale Parts Coordinator Christine Rizzo-Donaruma and Wholesale Parts Representatives David Perez(who recently joined the operation following a successful run atDowns Ford) and Pete Rifkin. Together, these industry pros cre-ate one of the strongest wholesale teams on the east coast. Thedealerships momentum is maintained by the active support ofowners Steve Kalafer and Byron Brisby. Since our previous profile on the dealer in early 2014 (Hereto Stay: Flemington Audi/Volkswagen/Porsche Thrives into theFuture, NJA, March 2014), Flemington Audi/Volkswagen/Porsche has added at least $100,000 in parts to its in-house in-ventory and expanded its delivery staff. Shipping/receiving per-sonnel still start their day at 4am, while the operations sizeensures that customers get all-important parts by the next daywhen other dealers cant accommodate these requests due to cut-off times. While some competitors are struggling to merely main-tain their current sales, Flemington Audi/Volkswagen/Porsche isin a state of constant growth. I attribute our success to parts availability and the people onthe phones, offers Muir. Were very detailed and very thor-ough; we follow up on everybodys order. We have a great bunchof people on the road; everybody loves our drivers. Customer retention at the dealership is also helped along bya popular loyalty program that offers annual rebates to shops thatbuy parts from a certain number of Flemington dealers, while a

special shop referral system awards auto body facilities that referother businesses to Muirs operation. Like a growing number of dealers, Flemington Audi/Volk-swagen/Porsche has strengthened its commitment to OEM partsby using CollisionLink/RepairLink for all three car lines. Thispresents shops with an alternative to having to use aftermarket orsalvage parts in the repair process. Additionally, Volkswagen of-fers a strong price matching program, while Muir and his crewregularly go above and beyond in making sure their customersfor the other automakers dont have to settle for anything lessthan the best job possible. Audi and Porsche dont have price matching [programs],but at times, we will go deeper into a discount to save that sale,he says. Volkswagen also has Genuine Advantage, another wayfor shops to get reimbursed. Above all, Flemington Audi/Volkswagen/Porsche thrives be-cause of its access to the right parts at the right time. When youcall to place an order, you dont have to worry about a part beingdelayed due to unavailability. With nearly $1 million in itemsstored on-site, this dealer has you covered. If someone needs something immediately, weve got it,Muir says.

VENDOR SPOTLIGHT By Joel Gausten

NJA

Quality in the Millions:Flemington Audi/Volkswagen/PorscheScores in Wholesale


The Flemington Audi/Volkswagen/Porsche wholesale department isopen 8am to 5pm, Monday through Friday (orders and deliveries) and 8am-4pm on Saturday (orders only). For more information, please call

(800) 216-5124.

New Jersey Automotive | November 2015 | 27New Jersey Automotive | November 2015 | 27

NORTHEAST 2016 SPOTLIGHT by Jacquelyn Bauman Although the weather is getting colder, the automotive field is start-ing to heat up. With SEMA just inches ahead of us at press time, vendors through-out the industry are already starting to look forward to the next big event the 39th Annual NORTHEAST 2016 Automotive Services Show.After a record-breaking year in 2015, exhibitors are rushing to sign upfor the show (held this year from March 18-20 at the Meadowlands Ex-position Center in Secaucus, NJ), pointing to an even more successfulthree-day weekend than the last. One major vendor that has already laid claim to its spot this year isPro Spot distributor Innovative Solutions and Technology. Innovative will be expanding its floor space for the third straightyear at the NORTHEAST 2016 Automotive Services Show, says Inno-vative Solutions and Technology Sales Representative Nick Mattera.Pro Spot will be featuring new tools that will address the changing repair process in our industry, and hands-on demonstrations will be ex-panded in the booth this year for aluminum and steel repairs. This willbe a great opportunity [for you] to put one of our Pulse MIG welders inyour hands and see for yourself why Pro Spot is the industry leader insilicon bronze for steel repair, or [to] try out the number-one selling spotwelder in the world. You certainly do not want to miss what is new fromPro Spot at NORTHEAST. Let us show you why Pro Spot is the answerfor all of your shops welding and joining needs. BASF is another returning exhibitor that has been a major contribu-tor to the show in a number of ways. As a NORTHEAST PlatinumSponsor for a number of years, this major paint supplier understands theadvantages that come from participating in the largest regional tradeshow of its kind. There are a multitude of reasons that we contribute to NORTH-EAST, says BASF Marketing Services Manager Tina Nelles. Thevalue of participating in the show is demonstrating your importance tothe industry and having the opportunity to interact with our customersand target accounts. Suppliers are not the only companies already gearing up for theshow. After a wildly successful presence at NORTHEAST last year,American Honda Motor Company has secured its position in the 2016installment of the show, planning to use the platform to demonstrate thenewest opportunities from the manufacturer. Last year at NORTHEAST, we introduced our ProFirst Certifiedbody shop program. It was a great show for us, expresses AmericanHonda Motor Company Assistant National Manager Gary Ledoux. For2016, we are going back to NORTHEAST to introduce our brand newbooth and reach even more collision professionals with information onour ProFirst Certified program. Plus, we have two collision-damagedvehicles in the booth to dramatically demonstrate the importance of fol-lowing OE repair procedures and using the proper tools and equipmentfor collision repair. Its a must-see! Keeping an eye towards the future, there are big things to comefrom NORTHEAST 2016 that are not to be missed. For exhibitors thatare interested in participating in what is sure to be a knockout event,please visit aaspnjnortheast.com for more information.

EARLY VENDORINTERESTPoints to Most

Successful Show Yet

The 39th Annual NORTHEAST 2016 Automotive Services Show will be heldMarch 18-20 at the Meadowlands Exposition Center in Secaucus, NJ.

Many of last year's vendors are already signed on to return to the 2016 show.(Top to bottom: BASF, Innovative Solutions and Technology and American HondaMotor Company)

NJA

Networking.

Education.Innovation.

Technology.

ITS ALL HERE.AASP/NJs

March 18, 19, 20, 2016 | Meadowlands Exposition Center | Secaucus, NJ

www.aaspnjnortheast.comNew Jersey Automotive | November 2015 | 29


LOCAL NEWS By Jacquelyn Bauman

Aluminum MeetingsGive AASP/NJ Members a Glimpse into the Future Its all weve heard about for the lastfew years. Aluminum. Now that it is offi-cially out on the road in its biggest wayyet in the 2015 Ford F-150, many shopsare starting to feel the pressure to find outhow to repair an aluminum-intensive vehi-cle or at least where to begin. It is forthis reason that AASP/NJ recently put ontwo comprehensive aluminum repair infor-mation presentations. September 23 and 29 saw over 60 repairers gather at Reliable AutomotiveEquipment, Inc. (RAE) in Belford for eye-opening presentations by renowned expertand RAEpresident Dave Gruskos.Gruskos stressed at the beginning of theSeptember 29 presentation that it wouldnot be a sales pitch there would be notalk of money or hours, only the processesand equipment to use for a solid repair onaluminum. Gruskos covered panel andwelding preparation, welding on alu-minum bolts, panel warm up before dentremoval, dent removal with screw pullers,filing off pulling bolts, dent removal onsmall dents with a hot flame and address-ing surface irritations with a special filler.However, one of the most important topicsthat Gruskos stressed throughout his expo-sition was cleanliness.

Gruskos presented attendees with the recommended aluminum bay safetycurtains with a welding shield, plus theproper lighting for aluminum repair. Theseitems were installed in his showroomwhere the demonstration took place; as aresult, the lighting replicated the factory inwhich an aluminum-intensive car is built. One thing to remember when youreworking with aluminum is that it is explo-sive, he explained. It is equal to dyna-mite in terms of the charge of theexplosion. These curtains are designed toabsorb the brunt of an explosion. Other-wise, if youre in a hard-wall building, itwill blow out. After he provided an example of thesafety precautions a shop should take (andwhat a shop doing aluminum repairsshould look like), he began to explainsome of the equipment and proceduresnecessary to properly fix an aluminum- intensive vehicle. Some of the things I show you willlook new to you, but I guarantee they willbe mainstream in the next few years,Gruskos said. Most of the things I showyou are mainstream right now, but youprobably just dont know it.

Although he explained some of thebasics of aluminum repair, he stressed thatmost repairers should already be familiarwith at least some aspects of the material,considering that vehicles on the road havehad aluminum components for decades. You cant heat-pull or stretch alu-minum, he said. You can warm it with aheat gun, but if theres a large dent orcrease in it, it will need to be replaced. After a lengthy discussion about thepanel repair process (from prepping to fin-ishing and checking the welds with Mag-naflux), Gruskos brought up what thefuture will likely hold for collision repair. The materials youre going to beworking with now are aluminum, magne-sium and ultra-high-strength steel, and[youre going to see an implementation of]all these products into each component,he stated. What that means is youregoing to have aluminum on cars to lightenthem up. Youre going to have magnesiumon cars to make them lighter and stiffer.Youre going to have plastics as an insula-tor, especially on hybrids. Self-piercingrivets are yesterdays technology by far.Were working with flow form rivets, poprivets, punch rivets, blind rivets andmore.


Dave Gruskos of Reliable Automotiv

e

Equipment, Inc.

A sizable crowd gathered for straight talk on thepresent and future of aluminum repair.

LOCAL NEWS By Jacquelyn Bauman


Final 2015CARSAND COFFEEBreaks Records

This years final installment of the increasingly popularCars and Coffee event was held on October 18 at MotoBusiness Park in Millstone Township. Organized by AASP/NJ Treasurer Tom Elder, the gathering has seen impressivegrowth over the years. Starting off in 2012 with just 12 cars to display, the Sunday morning car show reached record heights in 2015,with the year-end event filling the Moto Business Park tocapacity with 600 cars! People come from Canada, down south in Pennsylvania,New York City and all over to Cars and Coffee, says Elder.This year, we had the car from The Munsters, one of thethree Monkeemobiles, a Batmobile and a range of carsfrom a bunch of different decades and models. We servedover 420 cups of coffee and over 45 dozen donuts at thislast event, all for free. Its a little overbearing for us be-cause were a small group, which makes it difficult, but thisis more of a love than a venture. With ever-growing success, 2016 is sure to be anotherrecord-breaking year for Cars and Coffee, and the NewJersey car fanatic community cant wait until April to findout. For more information and to remain updated on Carsand Coffee, visit their webpage at carsandcoffenj.comand give them a Like on Facebook at facebook.com/carsandcoffenj.

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Photos Courtesy of Cars & Coee NJ

These have not been the best of times for industry giantVolkswagen. In a story that grows more dramatic with each passing day, thecompany is currently embroiled in a scandal involving how it wentabout performing environmental testing on its vehicles. In Septem-ber, the US Environmental Protection Agency revealed that the au-tomaker falsified pollution tests on approximately 500,000diesel-engine vehicles in the US by installing software (commonlyreferred to as defeat devices) to make these automobiles appearcleaner than they were. As a result, vehicles had the potential of re-leasing as much as 40 times the allowed level of nitrogen oxideswhen driven. At press time, it was estimated that at least 11 millionVW cars have been affected worldwide. Volkswagen was expectedto be hit with fines totaling in excess of $18 billion, while the com-pany has suspended sales amidst an order to recall 500,000 cars inAmerica. The identified US models include the VW Jetta, Beetleand Golf (2009-2015); the Audi A3 (2009-2015); and the Passat(2014-2015). Not surprisingly, the debacle has led to major changes at Volk-swagen. On September 23, Volkswagen AG CEO Martin Win-terkorn resigned from the company amidst a fraud investigation byGerman prosecutors. He was replaced by Matthias Mller, whohas served as CEO of Volkswagen subsidiary Porsche since 2010. On the same day as Winterkorns resignation, the New YorkPost reported that New York Attorney General Eric Schneidermanhad launched an investigation into VWs practices. No company should be allowed to evade our environmentallaws or promise consumers a fake bill of goods, Schneidermansaid in a statement. We will seek to uphold New Yorks strong tra-dition of consumer and environmental protections as this investiga-tion proceeds. We look forward to collaborating with AttorneysGeneral across the nation on this matter. In an October 6 letter to Volkswagen AG and VolkswagenGroup of America, Senate Finance Committee Chairman OrrinHatch (R-UT) and Ranking Member Ron Wyden (D-OR) probedthe manufacturer on the use of its defeat devices and the subse-quent certification of information to the Internal Revenue Service

(IRS) in order to meet requirements for federal tax credits and in-crease sales of its vehicles. In 2008, Volkswagen certified to the Internal Revenue Serv-ice that the 2009 Volkswagen Jetta TDI Sedan and SportWagenqualified for $1,300 in tax credits per vehicle sale, they wrote.On October 6 of that year, the IRS acknowledged Volkswagenscertification...Other 2010 Turbocharged Direct Injection (TDI)Volkswagen and Audi vehicles were later certified for eligibility.Volkswagen sold at least 60,000 of these vehicles by July 1, 2010,after which the credit amount was reduced in half until December31 of that year...These figures suggest that well over $50 million intax subsidies went to purchasers of these vehicles, depending onthe number of purchasers who claimed the credit. Recent findings by the US government show that Volkswa-gen manipulated emission control systems for as many as 482,000diesel vehicles sold in the US through the use of auxiliary emissioncontrol devices, classified by the US government as defeat de-vices, they added. The US government has alleged that Volk-swagen knew or should have known that this manipulation allowedthe vehicles to bypass, defeat or render inoperative elements of thevehicle design and cause the vehicles to underperform when thesystems determined the vehicle was not undergoing federal testing,resulting in different emissions levels during testing than the vehi-cles produce in normal conditions. The vehicles in which Volkswa-gen installed defeat devices included those that the companycertified as qualifying for the advanced lean-burn technologymotor vehicle credit. While investigations are ongoing, the Volk-swagen Supervisory Board has confirmed that the company in-stalled defeat devices on as many as 11 million vehicles marketedas model years 2009 through 2015. This activity raises questions ofwhether Volkswagen made false representations to the US govern-ment in its certification for federal tax subsidies. The full letter isavailable at tinyurl.com/pbq8wob. New Jersey Automotive will provide updates on this story as itdevelops.

NATIONAL NEWS By Joel Gausten


EMISSIONSSCANDALOVERWHELMSVOLKSWAGEN

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LEGAL PERSPECTIVE by Mitchell Portnoi, Esq.

A recent client of mine decided to handle his own divorce.He figured he knew what he wanted and had enough knowledgeof the system to ask for it and negotiate the terms on his own. Heultimately did a great job and perhaps negotiated a better dealthan he could have if he had been represented. Is there a problemwith that? Perhaps. It turns out that his ex-spouse is now makinga motion to set aside the settlement agreement after it had been inforce for a very short time. He is now expending considerablesums of money attempting to enforce it. Would he have beenbetter served if he had representation from the beginning? Ibelieve so, and I believe a number of adages apply a pennywise and a dollar foolish, and a person who represents himselfhas a fool for a client. I could probably go on, but Im sure youget the point. While an agreement negotiated in good faith by both partiesis generally enforceable, one that smacks of undue influence orduress (or that may be blatantly unfair on its face) is capable of

being set aside by a court. So this begs the question why placeyourself in this circumstance? Have a settlement agreementreviewed by a competent matrimonial attorney, and have a spousedo the same. Spend a few dollars at the outset and avoid thepossibility of larger bills in the future. Certainly, an impendingdivorce is ripe for claims of undue influence or duress. Whyput yourself through that if it can be avoided? For a referral to a matrimonial attorney, please call me at(973) 228-9900.

GETTING ADIVORCE?

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INDUSTRY UPDATE by Jacquelyn Bauman

How Will TheyAffect Our Industry?

SMART CARDS:

On October 1, there was a liability shiftfrom credit card companies to merchants as aresult of EMV (Europay, MasterCard and Visa)card transactions also known as chip cardsor smart cards.Although this has caused a bit ofan uproar in the collision repair industry, it is im-portant to note that your existing equipment willstill be able to accept all card transactions after Oc-tober 1. Six out of 10 people still do not have achip-enabled credit card. This shift from magnetic strip cards to smartcards is caused in part by the steady rise of corpo-rate data breaches at big box retailers. What weve seen over the last few years byway of fraud has been staggering, says Harbor-touch Sales Representative Ken Racioppi. Wevehad over 700 million cards compromised last yearalone. Every big box retailer has had some type ofbreach. Some of them youve read about Target,Home Depot, Walmart, etc. and some haventbeen front-page news. These breaches have forced Visa and Master-Card to implement a system theyve had in placeoverseas chip cards. According to Racioppi, 90percent of fraud happens on the magnetic strip,where it can be encoded and used to purchase bigticket items. With the new chip technology, a cardis inserted into a slot in the terminal (an EMVreader) and retained for a few seconds. Duringthese few seconds, the chip is read, the informationis passed along to the issuing bank, an algorithm isgenerated and a unique ID is created for each trans-action. There is no ability to clone the card becausethere is a unique PIN for every transaction. This change has had a few different effects on shops in this market. While the switch may pres-ent an issue for busy repair facilities because thetransactions take longer to process, smaller shopsshould see no conflict. The major complication is ashift in liability for the charging party. The mer-chant will take on the liability for chargebacks or

use of counterfeit cards if they do not have anEMV-compatible credit card terminal. My goal is to get out what is fact and what isfiction about these chip card terminals, saysRacioppi. An EMV-ready terminal can cost hundreds ofdollars or can be leased at a high monthly payment.Racioppi warns that salespeople for these terminalsare using the shift to rush merchants into making amistake for their business. Theres no big scare or rush to have a ma-chine rolled out immediately, he says. Some peo-ple have made some hasty decisions thinking that isthe case. Yes, you should have it, but dont rush tothe first one in your face because its more thanlikely being used as a sales tactic to prey on misin-formed merchants. Through Harbortouchs benefit partnershipwith AASP/NJ, Racioppi has created a programwhere members will receive a full EMV-ready solu-tion at no cost or contract. In addition to the EMVcapability, the solution will also support mobilepayment processing for those customers who wishto use Apple Pay or Google Wallet, as they arequickly gaining popularity and are forecasted to bethe preferred method of payment in the future.Racioppis system works over IP with dial backupto give the customer faster, more reliable transac-tion speed. As Harbortouch has been a trusted representa-tive of the association for over six years, AASP/NJurges you to bring your questions and concerns re-garding this matter to them. For more information,contact Ken Racioppi at (866) 353-0168 or emailhim at [email protected].

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FEATURE by Joel Gausten

If you need proof that the American economy is recover-ing, just check out traffic reports in your area.

According to the Federal Highway Administration, travel onour nations roads hit an astounding 1.54 trillion miles during thefirst half of 2015, a result of decreased gas prices and improvedfinancial conditions. However, there is a dark side to this influxof automobiles. Data from the National Safety Council indicatesthat fatal accidents across the US increased by 14 percent fromJanuary to June, with bad weather in many parts of the countryacting as a major contributor. The insurance industry is wellaware of this trend, and two of the fields biggest players are al-ready reshaping how they do business as a result.

BILLIONAIRES GOING BROKE?Anyone who owns a TV knows the GEICO gecko, that

amusing creature who finds himself in humorous situations whilethe company reminds viewers that they can save 15 percent ormore on car insurance by switching to them. But if financial up-dates from the industry giant offered throughout the year havebeen any indication, our little green friend might need to find arock to hide under. According to a May 4 Insurance Journal re-port, the insurers underwriting profits for the first quarter of2015 dropped $193 million from the first three months of the pre-vious year due to an increase in claim frequency. In an email tothe Wall Street Journal published in part on September 9, busi-ness legend Warren Buffett (CEO of GEICO parent companyBerkshire Hathaway) blamed the prevalence of texting behind thewheel for being a major factor in the jump in automobile acci-dents.

If cars are betterand they clearly aredrivers must beworse [adjusted for mileage], he wrote. (Buffett isnt being dra-matic: Based on National Safety Council estimates in 2014, 26percent of all car accidents in the United States involve somekind of cell phone use at the time of the collision.)

GEICO wasnt alone in announcing price increases. First-quarter underwriting income for Allstate automotive insurancefell 48 percent to $144 million from January to March 2015, lead-ing the insurer to announce its own plans to pass along the loss tocustomers by raising premiums.

We didnt make as much money in auto insurance this quar-ter, in part because of weather, in part because we have to adjustprices, reflecting economic activity, Allstate Chief Executive Of-ficer Tom Wilson told the Boston Globe on May 6, adding that animproved economy had resulted in customers driving more and

increasing claims volume along the way. Additionally, AllstatePresident Matt Winter told the paper that the average premiumspaid by customers have been steadily increasing.

The news surrounding Allstate and GEICO should be of par-ticular interest (and concern) to drivers who utilize their servicesin New Jersey already the state with the highest insurance pre-miums in the nation. According to the most current informationavailable from the National Association of Insurance Companies,drivers in the Garden State paid an average of nearly $1,220 oncar insurance policies in 2012. To put that into perspective, thatsmore money than policyholders had to shell out in our nationscapital ($1,155) and New York ($1,152). Marshall McKnight, aspokesman for the New Jersey Department of Banking & Insur-ance, told the Star-Ledger on March 23 that New Jersey was oneof the most densely populated states in the nation, adding thatthere are more cars and more accidents as a result. If more acci-dents equal more claims for insurers, then drivers here can expectto pay more for auto coverage than any other place in Americafor the foreseeable future.

(Something to keep in mind: While GEICOs $193 milliondrop is a major loss by any measure, that amount pales in com-parison to the companys monolithic advertising budget. As de-tailed by Insurance Journal in July 2014, the company spent$1.12 billion on advertising in 2012 and $1.18 billion the follow-ing year. To illustrate just how much emphasis GEICO places onadvertising, consider that Progressive spent a comparatively pal-try $595.4 million in 2013 to keep Flo the Waitress a culturalicon.)

WHAT SHOPS CAN LEARN Of course, what happens in the auto insurance industry im-

pacts the day-to-day business lives of collision repairers. Withcost serving as the deciding factor for many vehicle owners whenthey select auto insurance (especially as the holiday season ap-proaches), shops can expect underinsured customers hitting theirbays in greater numbers and all the collection headaches such atrend would very likely entail. However, there is something veryinteresting and potentially quite positive to consider in all ofthis: If the auto insurance industry can raise its pricing when itencounters new demands and obstacles, then why cant the collision repair field do the same thing? These days,

RATES andREALITY:What a Changing InsuranceWorld Means FOR YOU

the ability to properly bring a vehicle back to pre-accident condi-tion often requires everything from OEM certification to special-ized equipment and dedicated areas within a shop. There werenearly 360,000 2015 Ford F-150s sold from January to June and each one would need proper care if it is involved in a crash.But having the talent, expertise and equipment needed to restorethese vehicles often comes with a six-figure price tag for anyshop willing to take on aluminum repair of this nature.

Lets say youre considering purchasing a piece of equipmentfor a few thousand dollars. How many jobs do you have to per-form with that product before you see an ROI? Will that ROIoccur before that equipment becomes obsolete? What about thecost of training your techs to use that equipment? Did you have tosend them out of state for the weekend to get trained for thatthing? How many hotel rooms and meals did you have to pay forto make that possible? These are all things that influence yourcharges in the real world. Of course, a major reason to go through all that time and expense is to be certified/recognized by a major automaker anduse that as a marketing advantage. If the aluminum revolution of the past year has taught us anything, its that reaching this designation often comes at a high cost. In addition to you shelling out $100,000 or more to make your existing facility aluminum-capable, many manufacturers charge fees to participate in theirOEM programs. For example, Hondas new ProFirst Certified

body shop program requires a $2,700 annual fee on top of thatshop being either I-CAR Gold Class or a VeriFacts VQ or Medallion shop. A student taking Audis current 10-day Aluminum Welding & Structural Repair Certification Course willneed $3,000, not counting expenses for food, lodging and travel.With constant practice a necessity for a skilled aluminum techni-cian, Audi requires a four-day re-certification course every twoyears at $1,500 per participant. If youve made aluminum a part of your professional offer-ings, have you worked out how youre going to pay for that fi-nancial commitment? Perhaps the first thing you should do istake a look at how many Ford aluminum trucks you saw in yourfacility in the last few months. Was it a regular flow of work, ordid you only see five or six? If thats a realistic number for you,think about how many years it would take you to equal and ex-ceed the amount of money youve put out to be able to repairthese vehicles. Will you be able to realistically break that downinto an hourly rate that you can charge for that expertise?

With the impending winter sure to increase car accidentseven more, demands on both insurers and body shops will likelyescalate. But will shops follow the insurance industrys lead andraise their charges to weather the coming storm? It might be timefor many owners to consider that question very carefully.

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If the auto insurance industry can raise its pricing when itencounters new demands and obstacles, then why cant the

collision repair field do the same thing?


COVER STORY by Jacquelyn Bauman

The thought that an insurance companywould allow a consumer someone who iscompletely ignorant about the repair process to take photos of damage to his or her carand send it in to them to write an appraisalis absurd to many in the industry. And yet, photo estimatingsystems like Allstates QuickFoto Claim, State Farms PocketAgent or Farmers Insurances EZ Estimate allow an insured todo just that. In many situations, more damage is discoveredwhen the vehicle is taken apart, requiring a supplement to bewritten. In cases of photo estimating, some shops are seeingestimates that are inadequate by 30 to 50 percent. While shops in New Jersey are only just starting to feelthe brunt of photo estimating in their bays, the practice hasbeen around for a while in Massachusetts. In our state, the Code of Massachusetts Regulations[CMR] only allows photo estimates up to $1,500, says BillJohnson, owner of Pleasant Street Auto Body in South Hadley,MA and a member of his states Auto Damage Appraiser Li-censing Board (ADALB). The CMR had ruled that photo estimating equated to a personal inspection, but in my shop,what I saw were supplements that were 30 percent higher thanan average job. The amount of money in that difference washuge. The way vehicles are made these days, there are a lot ofcrumple zones and hidden damage. Its not possible to seeeverything from a cell phone picture.

AASP/NJ Boardmember Jerry McNee(Ultimate Collision Re-pair, Edison) is one NewJersey shop owner who hasseen the impact of photo estimating. As far as I see it,its a new way of doingbusiness that insurancecompanies are entertain-ing to cut down on the costof their internal expenses andrunning these claims, he offers. Ithink its going to happen and continue tohappen, and I think more insurance companiesare going to do it. The reason for McNees perspective on this issueis simple insurance companies think of the bottom lineabove everything else. Customers are going to get estimates that arent going tobe written properly because of the photos, he says.

The Allstate QuickFoto Claim procedure allows customersto take photos of the damage and the whole car and submit it tothe insurer. Thats it. Although the website advertising this fea-ture (tinyurl.com/p3ed594) stresses that it is only applicable

REMOTEESTIMATES:An UnfortunateSituation

REMOTEESTIMATES:An UnfortunateSituation


to minor damage, many consumers either dont know the differ-ence between minor and major damage or are unaware of majordamage they cannot see. McNee believes this is a perceived win-win situation for theinsurers and the consumers. Insurers are lowballing the damageon some vehicles, while many owners take the check to use onother things instead of repairing the vehicle they assume is onlyafflicted with minor damage. This is what McNee believes is theinsurers motive for using the system. They get away with a lowclaim figure, and the customer gets a little spending money. How-ever, months down the line when these customers need repairs ontheir vehicles or those automobiles are traded in, they are sur-prised by the financial hit they take. If my customer has a vehicle thats worth $10,000 and theyget $1,500 from the insurer through the photo estimating claimeven though theres $3,000 worth of damage down the road, theyare losing out, Johnson states. Not surprisingly, supplements are skyrocketing. The supplements on these jobs are absolutely higher,McNee says. They double or even triple in my experience. Thereason is that the photos are not correct; you cant see the internaldamage. I just had a three-hour repair on a bumper that clearlyneeded to be replaced. The biggest problem with photo estimating is the safety is-sues surrounding it, says AASP/NJ Executive Director CharlesBryant. In many surrounding states that have appraiser licensinglaws, photo estimating is forbidden. The laws state some variationof the fact that an appraiser shall not write an estimate over thephone, based on video or on photos. The estimate must be writtenthrough personal inspection. My question is, if an appraiser writ-ing an estimate is held to that high of a standard, how is a con-sumer allowed to send in two pictures to the insurance companyand they can write him or her a check? As there are no appraiser licensing laws in New Jersey, colli-sion repairers in the state just have to roll with the punches, asMcNee puts it. McNee and Johnson have some advice for shopsthat either have not yet experienced a photo estimate or that haveand are suspicious of them. I treat these vehicles like theyre any other estimate writtenoff the streets, McNee says. Its not going to change. Dont bealarmed at the difference between whats written and whats actu-ally needed. You have to spend your time educating your customer ontheir rights, says Johnson, who is not a part of a referral program(the equivalent of a DRP in Massachusetts). Shops need to edu-cate the consumers on why the insurers are not working for them.They also need to be proactive politically.


So what are repair shops in New Jer-sey going to do to fight photo estimatingand its impact on their daily business? Thefirst step is to document every situationyou have with this issue and send that in-formation to Bryant, who is working tocompile all evidence against quick photoestimating in order to fight its effect in theGarden State. Having spoken to aides fromSenator Diane Allens office back in May,Bryants goal is to collect evidence tobring back to her and the Department ofBanking and Insurance to prove a generalbusiness practice. The way it was left with the Senatorwas my instruction to keep an eye on thisissue, Bryant explains. For example, Iwant to be able to come back and showthem an insurance company that usesphoto estimating and writes an estimate for$900. Instead of getting the car fixed, thecustomer uses that money to pay his or hermortgage. Down the road, the vehiclecauses an accident. If an appraiser had ac-tually looked at it, he or she would haveseen that it should have been taken off theroad. By getting documentation of this intomy office, I can bring the evidence to theSenator and the Department of Bankingand Insurance to prove that somethingneeds to be done, he adds. If we canbuild up enough information, we can getsomeone to listen to us. To contact Charles Bryant about apoor photo estimating claim that has beenin your shop, please call (732) 922-8909 oremail him at [email protected].

COVER STORY

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ARANJ 2015 Officers

ARANJ 2015 Board of Directors

Wharton Insurance Briefs An ARA Member There have been several complaints regarding theloss control inspections that have taken place in thepast. We have relayed your concerns to the insurancecompany. The insurer has partnered with a new losscontrol service company that is specialized for yourindustry.They have a staff of industry consultants whoare specialists within this class of business and canprovide you with valuable loss control resources.Theywill be able to provide valuable risk managementpractices, recommend solutions, promote lossprevention and offer many other valuable resources.Some will be included in the loss control inspection, andothers can be obtained for a fee.They will be workingdirectly with you - our client - on all communicationrelating to loss control.Our office will be copied on allcommunication, but please contact me if you have anyquestions regarding their loss control inspection,recommendations or questionnaires that need to becompleted.More information on this new company willbe available soon.

Mario DeFilippis, AAI, Vice President(800) 221-0003 (ext. 1320)

(908) 513-8588 (cell)[email protected]

PresidentBob Dirkes

Dirkes Used Auto Parts (609) 625-1718

[email protected]

1st Vice President Ian Szoboszlay

Ocean County Auto (732) 349-0332

[email protected]

2nd Vice President Darryl Carmen

Lentini Auto Salvage (908) 782-6838

[email protected]

3rd Vice President Joe GoodmanLeesville Auto

(732) [email protected]

Mike Ronayne Tilghmans Auto Parts


Mike Yeager EL & M Auto


Rodney Krawczyk Ace Auto Wreckers


Mike Caputo Lacey Used Auto Parts, Inc.


Bert Witcraft Auto Express

(856) 728-8367Ed Silipena

American II Autos (609) 965-6700

[email protected]

Harry Shover Porchtown Auto (856) 694-1555Norm Vachon

Port Murray Auto (908) 689-3152

[email protected]

Executive Director Brian Snyder

Auto Recyclers of NJ (609) [email protected]


Did you ever stop to look at ALL of the people over the yearswho have tried and, lets face it, in some cases succeeded tobeat you up on a price? Can you do it for this? must have beenthe first words some people learned when they started to speak.Once they know they can get you on price, theyll try lowering iteach time until the bottom is reached or they are tired of askingand move on. (By the way, my customers have come to you andyours might have come to me.) There are no new customers, onlyones who move around for various reasons. Then there are the people who really are, for lack of a betterway to say it, stupid. Harsh statement, but true. They are illogical,running around in circles trying to get a car repaired. And theywant you to repair it their way. Of course, since they know best... I have learned to throw cars and customers away in the lastcouple of years. Im not lazy and I could use the work like any ofus, but the cost to deal with the crazies is just not worth the priceof admission. Ive been to the circus at this point in the game andseen the monkeys if you know what I mean. Case in point... Where is Joe Isuzu when you need him? Remember Joe? Forthe longest time, he was a character on TV in all those Isuzucommercials making promises about the car and the company.Well, one of his believers came into my shop this week. Thiscustomer had been driving a 2005 Isuzu that had a check enginelight on for three years, and now its state inspection was comingback around again. So much for the load of bull the state handed

us that vehicle owners will always maintain their vehiclescorrectly, which is one of the reasons we are suspending safetyinspections. But anyway, Joe wanted to know if we couldwork on his Isuzu. I told him, Sure, but we cant get parts formost of the vehicle anymore. He started to get a little belligerentand asked me what he was supposed to do. I suggested junkingthe vehicle since the company was no longer on the market and itwould be difficult to get good, quality repair parts. He pushedback, and pushed and pushed. I had to push back myself,explaining that the car was 11 years old, the company is gone andthe car is basically obsolete. Get over it.

THE BOTTOM LINE IS...

The price of admission goes up every day. The cost to be inthis industry is high financially and emotionally. One of thosecan be eliminated with a good business plan. The other? Standyour ground and take no crap. Harsh statement, I know. But theolder I get, the fewer filters I have. Life is too short; if we have tokeep paying a high price, it will get shorter all the time... Remember, everyone has a Joe Isuzu. Weighing how youdeal with them could lower your overall exposure and cost andhelp to keep your price of admission within your budget. The longer I do this, the more I wonder.

Til next time, Im Ron Ananian, The Car Doctor, reminding youthat Good mechanics arent expensive; theyre priceless.Ron Ananian, owner of R\A Automotive in Waldwick, NJ (est. 1978), is heard weekly in 140 marketson his nationally syndicated radio talk show. He is a working technician and former AASP/NJBoard member. Beyond his radio show, Ron writes and speaks for the automotive industry attrade shows and events. Visit The Car Doctor online at www.cardoctorshow.com.

THE PRICE OFADMISSIONFunny how the older you get, the more youwonder. Why do things work like they do (notthe cars, but life, business and the world)?What does it cost to be involved in auto repair?Its not just the overhead, tools, equipment,personnel and so on its more.

NJA

NO BRAKES by Ron Ananian

The Car Doctor can be heard LIVE in the New York market. Tune in Saturdays, 2-4pm on WRCRAM 1700 for new shows!


Twelve years ago, auto body technician Jeffrey Vrablik madethe life-changing decision to be his own boss and open his ownshop. Before long, The Wreck Room Collision in Atlantic High-lands became one of the most popular repair operations in thearea. For Vrablik, this continued success has been a highlight in alife filled with automobiles. Ive loved painting since I was five years old, he shares. Iused to take the Hot Rod magazines off the top of my dadsdresser, thumb through them and look at all the different paintschemes. If they had a paint and body special, I had to readabout what they were using. Not surprisingly, making the leap from technician to ownerwas an eye-opening experience for this automotive professional. I learned a lot about employing people, he reveals. Em-ployees are the most difficult aspect of this business. For the firstfive or six years, I would say that was the toughest thing I wentthrough. Currently, Vrabliks 4,000-square-foot shop repairs roughly30 vehicles a month thanks to a three-person crew that includeshis girlfriend, Brittney Romero. I said to her, You know, if were going to be serious, youmight want to learn about the body shop because I could usesome help, he recalls. She did; she does repair work and paintprep, and she runs my office, writes all the estimates and dealswith the customers. To ensure that his facility runs smoothly, Vrablik takes ahands-on approach to encouraging and developing the talent onthe shop floor. Ive found young employees and trained them myself, hesays. One was working as a mechanic at a gas station; another isa young lady who went to Lincoln Tech for mechanical repair.Nobody would give her a job, so she thought, Why not try abody shop? While The Wreck Room Collision operates with a positivespirit, thats not to say that the shop hasnt encountered its fairshare of frustration. Like many owners, Vrablik faces issues withvehicles being totaled under their threshold, or customers retain-ing ownership of their vehicle after it was deemed a total loss.These and other concerns led the shop to join AASP/NJ earlierthis year for the first time. Ive asked for [Executive Director] Charles Bryants adviceon a few occasions, says Vrablik on his decision to become amember. Hes really helped me out with settling claims. I prom-ised him that since he answered my questions, I would join theassociation.

As for the future, The Wreck Room Collision is currently inthe process of converting unused office space at the shop into amotorcycle/ATV collision repair area that is expected to be in fulloperation by the end of the year. It seems like more insurance companies are getting into thepowersports market, Vrablik explains. I feel like theyre goingto be looking for facilities that have dedicated space for that typeof work so that somebodys high-dollar motorcycle isnt sittinginside a body shop with grinding and welding and dust getting allover it. With a thriving facility and more than a decade in businessunder his belt, Vrablik remains proud to have a home in the NewJersey auto body industry. Its all that I know and all that Iveever wanted to do for a living, he says.Now that Ive been at it for a while, Icant think of doing anything else.

AASP/NJ NEW MEMBER SHOP PROFILE By Joel Gausten

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THE WRECK ROOMCOLLISION

The Wreck Room Collision is one of AASP/NJ's newest participants.

Giants gets. Were talking needle in ahaystack. But wouldnt you know...Mr.Mara took the time to write me back,and not in some form letter with astamped signature. This was a beauti-fully handwritten explanation of whythe Giants cut Simms. He actuallyagreed with me! But he said he paidhis football people to make the foot-ball decisions. As a business owner, Iunderstood perfectly. Im still pissedthey did it though! But God bless theman. He was one of the most influen-tial figures in NFL history and he tookthe time to answer some pain-in-the-ass fanatic from Nutley. I have written many letters tomagazines over the years, and it wasalways a thrill to wait and see if theywould print it. I used to check the mail every day after Id written one, anticipating seeing my name in themagazine. (Trust me, I get the subcon-sciousness working here.) I think Imiss that feeling more than anythingelse Ive mentioned in this story. I feelterrible that my kids will never experi-ence that thrill thanks to messageboards, Twitter, Facebook, etc. I have had a lot of luck over the years.Ive been in Sports Illustrated, the

Star-Ledger, Rolling Stone, The Na-tional and several others. But neverPlayboy. No, I didnt get into Playboy until I EMAILED a letter to them. Talk aboutirony. I should have seen the announce-ment they made today coming backthen.


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OUT OF BODY (AND MECHANICAL) EXPERIENCEScontinued from page 11

With all of the different repair proce-dures coming to the market, Gruskos recommends finding a rivet gun withadapters so that you can handle self-pierc-ing rivets, blind rivets and flow form rivets. Before breaking to allow attendeesto view some of the equipment in actionand ask questions, he once again stressedthe necessity for safety procedures andequipment in the shop. Aluminum dust and magnesium dustare very flammable, he warned. If youmix aluminum dust and steel dust, thats athermite bomb. You need a vacuum thathas water running through it. Its your jobto have whats required in your shop froma safety standpoint. For more information on any of thetopics covered at the aluminum meeting,please contact Dave Gruskos at (732) 495-7900, email him at [email protected] orvisit the RAE website at raeservice.com.

LOCAL NEWScontinued from page 30

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PRESIDENTS MESSAGEcontinued from page 12car delivery until the check clears?What would you do? Im interested to see if any of ourreaders have faced this situation and,if so, how you handled it. If you have astory of your own to share or someinsight into how you would go aboutsafeguarding the legitimacy of checkpayments please reach out to myselfor the New Jersey Automotive editorialstaff (see page 5). You might find youradvice in a future issue!

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Acme Nissan ........................................4Amato Agency ......................................27AP Media ..............................................23Audi Group............................................34-35Axalta Coating Systems ........................6BMW Group ..........................................38-39Bridgewater Acura ................................33Cadillac of Mahwah ..............................17CCC Comp-Est ......................................18Classic Audi ..........................................18Clinton Acura ........................................11Cosmos Ocean County Autowreckers ....12Dover Dodge Chrysler Jeep....................IBCEmpire Auto Parts..................................66FASTLIGN ..........................................23Flemington Audi ....................................25Flemington Group..................................5Fred Beans Parts ..................................26Future Cure ..........................................20Grand Prix Subaru ................................53Glen Toyota ..........................................OBCHyundai Group ......................................61JMK BMW ............................................13JMK Saab/JMK Fiat ..............................57Klean Frame..........................................56Levittown Ford ......................................53Maxon Mazda........................................42Maxon Hyundai......................................37Mazda Group ........................................62Mercedes-Benz of Freehold ..................10The Mike Kaufmann Dealer Group..........65MINI Group............................................59MINI of Manhattan ................................60Mitsubishi Group ..................................63Mopar Group ........................................47NORTHEAST 2016 ............................62NUCAR..................................................14-15Paul Miller Audi ....................................46Porsche Group ......................................43PPG ......................................................3PPGMS ................................................40Prestige Motors ....................................64Princeton BMW ....................................21Princeton MINI ......................................19Reliable Automotive Equipment ..............31Smart Witness ......................................19Steck Manufacturing..............................64Subaru Group........................................45Town Motors ........................................41Toyota Group ........................................51Toyota of Hackensack ............................IFCTri-State Luxury Collection ....................8-9Valtek....................................................56VIP Honda ............................................33VW Group ............................................50Westbury Jeep Chrysler Dodge Ram SRT...52Wheel Collision Center ..........................66

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New Jersey Automotive November 2015