Car dealers ask lawmakers to let them loan cars to coaches

Jennifer Coleman

Wednesday, April 21, 1999 | 9:26 a.m.

CARSON CITY - Car dealers want lawmakers to help them preserve the practice of loaning cars to university coaches, non-profit organizations and churches.

John Sande, representing the Nevada Franchised Auto Dealers Association, told the Senate Transportation Committee on Tuesday that dealers often loan cars to groups they want to support.

"It's a way for them to be philanthropic," Sande said.

But he added that any contributor to universities often gets preferential treatment when it comes to tickets and other perks. Sande said dealers who contribute cars also get publicity for their donation and are often mentioned in the programs.

Wayne Frediani, executive director of the dealers group, said AB329 would clarify the circumstances in which dealers would be able to do something they've done for years.

The bill would allow dealers to loan cars to driver education programs, charitable organizations, state or local governments, school districts or the dealer's customers. The cars, which Sande and Frediani say are loaned for six months, are then sold as used cars.

Frediani said he's unsure of any tax benefit the deal gives to dealers, though the car's value would depreciate once it's declared used.

Officials from University of Nevada, Reno and University of Nevada, Las Vegas spoke in support of AB329. Combined, the two campuses save about $282,000 in their athletic budgets by not having to pay for cars for coaches.

Rick Bennett, lobbyist for UNLV, said it's a common courtesy of universities to provide a car to coaches.

Frediani said 22 cars are loaned to UNR coaches and campus president Joe Crowley.

Sen. Terry Care, D-Las Vegas, questioned the philosophy of giving coaches freebies.

"Why should a coach have the privilege of a free car, instead of the physics professor who 10 years from now wins the Nobel Prize? You could argue he's more important than a basketball coach," he said.

No matter who gets the free car, Sande said, the recipient is responsible for paying taxes on the use of the car and for insuring it.

Sen. Maurice Washington, R-Sparks, joked that he loved the bill. "Does that mean you could give someone like me, a pastor, under a (charitable) organization, a car?" he asked.