As we enter Week 2 of the Coronavirus shutdown, NJ CAR wanted to provide its members with a few brief updates and reminders.
Governor Murphy Executive Order Update
Governor Murphy’s Executive Order 107 prohibits dealerships from selling vehicles at their physical/ licensed locations and NJMVC regulations prohibit dealers from conducting sales activities off site.
NJ CAR has petitioned the Governor’s Office and State Police responsible for enforcing the Executive Order) for relief and to allow dealers to arrange sales online and deliver cars by appointment in the service lane (which may remain open).
The Governor’s Office says they are sympathetic to our request, but they are expecting a huge increase in COVID-19 cases in the next 48-72 hours and they believe loosening restrictions will send the wrong message. This, despite the fact, that New York has opened up to sales by appointment and some Philadelphia area dealers are open, which causes consumers to travel and increase the risk of spread.
Still, we don’t expect to get the green light for online sales with “contactless delivery” in the service lane until mid-week, at the earliest. That doesn’t mean you can’t continue to market and sell cars online or remotely.
If you have customers in urgent need of a vehicle, you may negotiate and arrange the sale online and/or remotely by phone or text. You just can’t deliver a car at the dealership (violation of Executive Order) or at a person’s home (violation of NJMVC regulations) at this time.
We will communicate any developments on this issue as soon as they are received.
Federal Help Is On The Way
The CARES Act legislation, passed over the weekend and signed into law by President Trump, provides $350 billion for 100% federally-guaranteed loans for eight weeks. Dealers may borrow up to 250% of their average monthly payroll cost and may be forgiven equal to the amount spent over an eight week period following the origination date of the loan.
Eligible businesses must have paid salaries and payroll taxes prior to February 15, 2020 and have fewer than 500 employees. For those auto groups with more than 500 employees, eligibility affiliation rules may be waived under certain criteria.
Loans can be used for “payroll costs” up to an annual rate of $100,000 per employee. This also includes interest on mortgage obligations, rent, and utilities. SBA-certified lenders and non-SBA lenders will be authorized to make Payment Protection loans through delegated authority for quicker processing. Loans will not require an application fee, personal guarantees, collateral, or closing costs.
NJ CAR is putting together a brief webinar for Wednesday, April 1st to go over the most critical details of the CARES Act and SBA loan process. Look for details on NJ CAR’s webinar this afternoon.
NJ CAR Operations Update
In response to Governor Murphy’s March 21, 2020 Executive Order Order 107, NJ CAR headquarters and NJ CAR Motor Vehicle Operations have been operating remotely or with a skeleton crew until further notice.
NJ CAR Headquarters Details
NJ CAR Headquarters remains closed, but most staff are working remotely and are accessible to serve dealer members. They continue checking voicemail and email and phone calls made to the office may also be forwarded to their mobile phones. You can find a list of all NJ CAR Headquarters staff HERE.
NJ CAR Motor Vehicle Operations Details
The New Jersey Motor Vehicle Commission and online vendors(CVR/DealerTrack) continue to support motor vehicle title and registration processing, so NJ CAR is maintaining limited motor vehicle operations to aid dealers as long as the NJMVC remains open. NJ CAR’s Motor Vehicle Operation management staff are responding to telephone inquiries, so feel free to call and leave a voicemail message.
NJ CAR and the NJMVC are allowing dealers to process title and registration workthrough the online system ONLY. The courier continues to pick up work from dealerships, but if your dealership is closed, please notify NJ CAR by sending an email to Rich Dreyer at email@example.com.. At this time, NJ CAR will not bereturning any title documents. NJ CAR will continue to fill all inventory requests as needed.
If you choose to send motor vehicle transactions to the DSP office, NJ CAR will hold the work for the time being and will process these transactions when the NJ CAR Motor Vehicle Operation is able to reopen at full staffing levels. Meanwhile, know that we cannot commit to the usual 3-day turnaround. Keep in mind that temporary registrations have been extended to 90 days by the NJMVC.
NJ MVC Updates & Reminders
MV Agencies Will Remain Closed Through April 12, 2020
The New Jersey Motor Vehicle Commission (NJMVC) recently announced that all local agencies, road testing and inspection facilities will remain closed through at least April 12, 2020 in an effort to mitigate the spread of the COVID-19 virus.
NJMVC Headquarters in Trenton, as well as online services will continue to remain in operation with a skeleton crew, and essential personnel are expected to continue reporting to work.
All driver licenses, non-driver identifications, vehicle registrations and inspection stickers expiring before May 31, 2020, have been extended for two months.
Most customer renewals and changes of address can be processed online at NJMVC.gov.
IRP Registrations Extended Until May 31, 2020
IRP registrations for both temporary cab cards and permanent cab cards that expire in March, April and May have been extended to May 31, 2020. The back-office operation for both IRP and IFTA is operations, but all transactions must be handled via online services, email, mail or fax.
IRP and IFTA requirements for commercially registered carriers that are based in other jurisdictions and are travelling to or through New Jersey on COVID-19-related emergency business have also been waived until May 31, 2020. See the complete Administrative Order 2020-02 that details the IRP extensions and waivers.
Dealer Temps and Dealer License Renewals Have Both Been Extended
The New Jersey Motor Vehicle Commission issued an Administrative Order 2020-01 on March 13th that extends Dealer Temps (both resident and non-resident) for 60 days. Dealerships should feel free to provide a copy of the Order to customers to keep in their vehicle.
The NJMVC also issues Administrative Order 2020-03 on March 19th that extends the submission of all 2020 Dealer License Renewals until May 31, 2020. The Order also extended the expiration date of dealer plates and registrations until June 30, 2020.
Don’t Forget To Provide Employees
With The Mandatory FFCRA Notice
Just a reminder, the U. S. Department of Labor (USDOL) requires that all employers with 500 or less employees must post the following Families First Coronavirus Response Act (FFCRA) poster (see below) in the workplace, and provide it to their employees prior to the act becoming law on April 1, 2020.
This information covers the specific paid leave entitlements that coincide with FFCRA, also known as “Phase 2”. This poster is available for download from the link above or the USDOL website (www.dol.gov).
NJ CAR will continue to update its members on the various requirements of the Act as they become available.