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www.IllinoisDealers.com
Join our mailing list!
Do you know of other member dealership employees who should be receiving the IADA Electronic Bulletins? Let us know! Send an email to Meghan Sander (msander@illinoisdealers.com), Director of Communication, with the contact information of people who should be on our distribution list.
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2020 IADA OFFICERS
Chairman
Mike Ettleson
Ettleson Cad-Bu-GMC, Inc.
Hodgkins
Vice Chairman
Rick Yemm
Yemm Chev-Bu-GMC-Chry-Jeep
Galesburg
Treasurer/Secretary
Sean Grant
Landmark Chry-Jeep-Fiat
Springfield
President
Peter Sander
IADA
Springfield
IADA Staff Contacts:
Ph# 1-800-252-8944
Pete Sander
President
Ext. 103
psander@illinoisdealers.com
Larry Doll
Legal
Ext. 105
ldoll@illinoisdealers.com
Mark Harting
Administrative Services
Ext. 110
mharting@illinoisdealers.com
Mike Healey
Member Services
Ext. 107
mhealey@illinoisdealers.com
Joe McMahon
Legislative
Ext. 113
jmcmahon@illinoisdealers.com
Meghan Sander
Member Communications
Ext. 109
msander@illinoisdealers.com
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Your IADA Partner
Moving Vehicle Registration into the future
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May 20, 2020 Volume 2020, Issue 14
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Governor's Department of Commerce and Economic Opportunity Responds
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The Governor's Department of Commerce and Economic Opportunity has advised that once we move to Phase 3 of the Governor's Recovery Plan, retail (including dealerships) would be permitted to open with capacity limits, face masks, and subject to Illinois Department of Public Health (IDPH) guidance. We have offered suggested guidance, although have not received any guidelines yet from the IDPH.
Providing there is not a spike in Covid cases, as of now all four zones are on track to move to phase 3 on May 29th. We will keep you advised as we anticipate these changes to be implemented. |
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Illinois Legislature Returns for Three-Day Session
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The Illinois Legislature has returned to Springfield for a three-day special session to put together a budget for the state that begins July 1st. The Legislature has indicated it will be very limited in its agenda in attempting to craft a budget based on dwindling state resources and with issues regarding a coronavirus package and economic recovery, infrastructure funding, voting for the general election and a hospital program requiring federal funding.
We are continuing to push for repeal of the $10,000 trade in credit cap as SB 2481 is on third reading in the Senate. The Sponsor has indicated he will try and move the legislation; however, he is not optimistic it will be allowed.
We are continuing to work both the Senate and House leadership on this issue and will provide additional information as the legislative session begins this week. Please make sure you have contacted your Senate and House Members on how important this legislation is to our industry. Contacts can be made through our website, click here.
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Online Sales - Best Practices
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Many dealers are trying to accommodate their customers during the COVID-19 pandemic by selling vehicles online, especially as we wait for the Governor to remove the appointment requirement for customers to enter dealership showrooms, which is expected to happen on May 29th. Although remote sales are a good way to practice social distancing while selling vehicles, remote sales involve some important differences from typical in-showroom sales to keep in mind.
When selling a vehicle online and delivering it to the customer, it is vital to make it clear that your dealership is the point of sale so that you can avoid sales tax jurisdictional questions and avoid accidentally triggering 3-day cooling off rights for the customer. If the customer lives in another sales tax jurisdiction, even one with the same tax rate as your dealership, inadvertently changing the location of the sale means that the local portion of the sales tax will get allocated to the wrong taxing body. The 3-day cooling off period to return merchandise applies to sales made at a person's residence, meaning that 3-day cooling off rights do not arise when customers come into your dealership to purchase vehicles. However, if significant selling activity moves from the dealership to a customer's residence, the 3-day cooling off rule could come into play.
There are several steps that you can take to show that an online sale with delivery to the customer' residence was conducted at your dealership.
- Agree to all terms of the sale prior to delivery. If you negotiate the transaction on-line but then the delivery person sells an extended warranty in the customer's driveway, you have changed the material terms of the sale, which pushes you into troublesome territory. In fact, it is a good practice to have somebody other than your sales staff deliver vehicles that are sold on-line or over the telephone to make a clean break between sales and delivery activities.
- If the transaction involves a trade-in appraisal, try to inspect the vehicle remotely, if possible. If the vehicle does not live up to the customer's description and you need to adjust the trade allowance, pause the deal and renegotiate remotely, not on the spot.
- Sign as many of the sales documents as possible on-line. If possible, arrange to have signed copies of documents that require a "wet ink" signature mailed or shipped to your dealership before you deliver the customer's vehicle. Documents that require a "wet ink" signature include the motor vehicle title application, the certificate of title assignment area, the power of attorney, odometer statement, and sales tax return.
- Deliver RISC in advance (or be prepared to give the customer time to read it before signing) to ensure compliance with Truth in Lending Act disclosures.
- Consider having the customer sign an acknowledgement that the dealership did not solicit or negotiate the sale at the customer's home and that delivery was made as an accommodation to the customer.
- Consider requiring customers to come to the dealership for test drives. Bring a vehicle to the customer's home for a test drive could be seen as initiating the negotiation process and raise 3-day cooling off concerns.
- When you deliver the customer's new vehicle, make sure to follow IADA's recommendations or other best practices for sanitizing the vehicle (and the keys) before you hand it over to the customer and practice safe social distancing, including the use of masks, when interacting with the customer.
A word about security is in order. You will want to be thorough with your identity theft Red Flags compliance to be certain that your customer is who he or she claims to be, especially if the customer requests delivery at a location other than the home address on the customer's proof of identity. Consider asking some out of wallet questions to verify identity. Also, if you are transmitting a customer's private, personal information electronically (credit application, copy of driver's license, any document with the customer's social security number or other personal information, etc.), make sure that you are using a secure and encrypted method of transmitting that information. What is and isn't a secure method of electronic transmission is beyond the scope of this article, but your DMS or other vendor should be able to provide secure, encrypted means of transmission, whereas texting images to your salesperson's personal cell phone is risky at best. Conferring with your IT provider is highly recommended.
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