• • IADA TO HOST ANNUAL LEGISLATIVE RECEPTION BBQ
• • IADA/CATA FLORIDA CONFERENCE A SUCCESS
• • DAVE TAYLOR APPOINTED CAR OF ILLINOIS CHAIRMAN
• • ATTORNEY GENERAL DEALER RECOVERY FUND ADVANCES
• • ARE "SERVICE WRITERS, SERVICE ADVISORS, SERVICE MANAGERS, AND SERVICE SALESMEN" EXEMPT FROM OVERTIME?
• • 1099 HEALTH CARE PROVISION REPEALED
• • DEALER REPUTATIONS ONLINE
• • FEDERAL TRADE COMMISSION HOSTS AUTO FINANCING PANEL
• • OUR IADA PARTNER - ZURICH

Your
IADA
Partner

Moving Vehicle Registration Into The Future
(click logo for more details)






 

IADA’s Annual Legislative Reception and BBQ for Illinois Legislators, State Regulators and Legislative Staffs is set for Tuesday, May 10 at the IADA Offices in Springfield.

The IADA Legislative Reception continues to be one of the must attend Legislative Receptions held during the Spring Illinois Legislative Session. 

The IADA Board of Directors will be meeting that day (Tuesday, May 10) and Chairman Tim Mooney, Tuscola, invites all dealer members to come to Springfield and help host their state legislators at the IADA Legislative Reception/BBQ.

Dealer visits to the State Capitol will be arranged along with visiting with your legislators at the IADA Legislative Reception.  Register today to join us and make a difference in helping to represent the voice of the Illinois dealers in Springfield!

Top

The IADA/CATA Annual Spring Conference was recently concluded and we sincerely appreciated NADA Chairman Stephen Wade, St. George, Utah, for attending and updating our members on national industry events.  While delivering his speech Stephen Wade said that our industry is heading in the right direction. A combination of great products and improving consumer credit are a few of the factors fueling increased sales.

IADA Chairman Tim Mooney and CATA Chairman Steve Foley Jr. co-chaired the meetings. Chairman Tim Mooney recognized 2010 Chairman John Wolf, Belvidere, for his outstanding service to Illinois dealers in serving as Chairman of IADA in 2010.

NADA Chairman Stephen Wade also recognized NADA Directors Jamie Auffenberg Jr., Belleville, Mark Scarpelli, Antioch and Desmond Roberts, Hodgkins, for their work and service on the NADA Board of Directors.

The IADA Board of Directors met during the conference and were updated on IADA Legislative and Regulatory activities along with approving and accepting the Association’s and IADA Building Partnership’s Audited financial Statements.

The Marco Island weather was perfect and proved to be a fantastic conference location which dealers, their families and sponsors came together for a few days to enjoy an outstanding educational and social event. Conference pictures will soon be posted on our new and improved website, www.illinoisdealers.com.

 Click here for more information on our re-designed website and all your online membership needs.

Top

Top

Legislation proposed by the Illinois Attorney General to help consumers hurt by dealers who close their stores and are unable to pay off trade in liens has passed the Illinois House and now moves to the Senate for consideration.

The legislation proposes a three member board, composed of representatives from the Attorney General’s Office, Illinois Secretary of State and one person representing dealers, would oversee the proposed Dealer Recovery Trust Fund.

The Dealer Recovery Trust Fund would add a $500 charge to the annual license fee for each new and used motor vehicle dealer and motorcycle dealers, plus $50 for each additional place of business.  It is estimated the fund would collect approximately $2.0 million the first year.  Once the fund reaches a balance of $3.5 million, collection of the fee would be suspended the following year for dealers who did not have a claim paid from the fund; or a suspended or revoked license; or have any civil penalties assessed against them during the previous three years.
 
The A.G.'s Office has indicated that 48 states have some type of fund or bonding requirment to cover these situations. The original proposal was a $1,000.00 fee per dealer or a more expense bonding requirement. 

IADA is expected to administer the fund to oversee that the funds are used and collected in accord with the provisions of the proposed legislation.  One of the most important provisions included in the legislation was to structure the fund outside the State Treasury as an independent fund. An independent fund would not be available for the State to sweep for cash flow purposes!  Currently there is a lawsuit pending before the Illinois Supreme Court regarding this issue; however the fund involved in the lawsuit is considered a state fund!  We will keep you advised as this legislation progresses.

Top

                                (Reprinted from NADA Article)
For at least 32 years, the U.S. Department of Labor (DOL) has advised car and truck dealers and its own staff that the answer, unequivocally, is yes. In addition, a uniform and uncontroverted line of federal court cases dating back to 1973 has held likewise.
In 1987, the DOL indicated that it intended to correct its federal wage and hour rules to reflect its decades-long position on the matter. In July 2008, the DOL finally proposed to do so. NADA responded with comments in support of the proposal, fully expecting the proposed corrections to be made. However, in an April 5, 2010, final rule, the DOL indicated that not only that it was not going to correct its rules, but also that it intended to reverse its 32-year position on the matter.

On April 7, NADA staff met with DOL to express NADA’s concerns, to review the agency’s position, and to explore alternatives. Bottom line: it was clear that the DOL staff had done little or no analysis to justify their decision. Consequently, NADA submitted a letter to Secretary of Labor Hilda Solis asking her to reconsider the matter.

So, where does that leave the overtime exempt status of “service writers, service advisors, service managers, and service salesmen”? Please carefully note that: 

     1. While for now the DOL has decided not to make the regulatory corrections it proposed, it has not yet formally revoked its opinion letter and enforcement policy on the issue. Thus, they are still in effect.
     2. Moreover, as detailed in NADA’s Dealer Guide to the Fair Labor Standards and Equal Pay Act, dealership employees who earn over half of their compensation from commissions, and who earn at least one and one half times minimum wage for each hour worked likely are covered by a separate federal exemption from overtime. Many “service writers, service advisors, service managers, and service salesmen” meet these criteria. (To access the guide, sign in to NADA University, select “Resource Toolbox,” then “Driven Management Guides.” Scroll right to the last category, “Driven Management Guide Archives,” and select. Find NADA’s Dealer Guide to the Fair Labor Standards and Equal Pay Act after you read the disclaimer.)

     3. State wage and hour laws can be different, requiring dealerships to pay close attention to any variations in their state.

NADA will update you on any new developments as we move forward. Questions? Contact NADA Regulatory Affairs regulatoryaffairs@nada.org or 703.821.7040.

Top

The business community was victorious in working to have Congress enact and President Obama sign H.R. 4, the Small Business Paperwork Elimination Act on Thursday which repeals the 1099 provision of the healthcare law. The bill passed the House earlier this month and recently passed by the Senate.

The president’s signature on this bill repeals the requirement which would have required businesses to file 1099 forms with every business with which they buy at least $600 in goods and services. 
 

Top

People are talking about dealers online, but do you know what they’re saying and where they’re saying it?

According to Les Abrams, NADA Academy Instructor, dealers must act to protect their reputations. “Google is assembling the reviews it finds and putting them into Google Maps,” Abrams said. “They’re integrating Google Maps into Standard Google, so dealers and customers alike can see the reviews and ratings in one place. If you want to see what is being said about you, look at Google Maps.”

He pulled Google Maps up on his screen. “Here’s a review that reads, ‘It was a wonderful experience.’” But here’s another: “I wish I could rate this place even lower.”

Abrams urges dealers to Google their dealership name regularly. They should see the map and what shows beneath their name. “We call it Page One Management,” he said.

Abrams knows whereof he speaks. He is the Academy’s lead instructor for Variable Operations 1, which includes brand management.

Abrams said that often you’ll see a negative YELP review right beneath the dealership’s name. He showed a review that read, “Worst car service I have ever dealt with” and explained, “Customers have virtually no choice—they’ll click on it to check the dealer out. Meanwhile, the dealer isn’t even aware that this review is there!”

That’s not an isolated instance. Abrams said web review sites make themselves very visible to the search engines.

So what should dealers do?

“Dealers can take charge of their Page One Management and create sites that will optimize better than these review sites,” Abrams said. “An example would be videos. Google owns YouTube. If I were a dealer with a negative review, I would flood YouTube with quality videos.”

Another Page One Management technique: Solicit written customer reviews to develop a library for future customers.

This article was adapted from NADA University’s “Dealer Pain Points” series, in which various issues, concerns, and dealer compliance obligations are addressed in short video segments with NADA U experts. The experts “resolve” each Pain Point and then the viewer is directed to the wealth of NADA U resources on the topic. Visit www.NADAuniversityblog.com/2011/01/brand-management for this Pain Point and, if you wish, download a “Dealer Pain Point Meeting Guide” as a template for a productive meeting on the Pain Point topic! Find the entire library at www.NADAuniversityblog.com.

Top

The Federal Trade Commission (FTC) began its series of roundtable events to gather information on possible consumer protection issues that may arise in the sale, lease or financing of motor vehicles.

During the discussions, the NADA team made a compelling case that the problems identified by consumer group representatives on the panels are (i) not representative of the industry and therefore lack the prevalence necessary to justify the imposition of a new rule, and (ii) already may be addressed through an array of consumer remedies that exist under current federal and state law. Most importantly, the NADA representatives explained in detail the extraordinary benefits that optional dealer-assisted financing provides to millions of consumers, including how dealers’ access to multiple finance sources and their efficient pricing allows dealers to (i) routinely offer consumers very competitive rates and (ii) in many cases, secure financing for “unbanked” consumers who otherwise would not have the means to obtain the transportation necessary to secure employment.
This legislation created the Consumer Financial Protection Bureau (CFPB); dealers worked hard to earn an exemption from the CFPB arguing that the industry is already heavily regulated by the states, the Federal Reserve and the FTC. During the debate, the FTC was granted expedited authority when considering auto regulations within their jurisdiction.

Top

Zurich makes insuring your business easy. For more than 80 years, they’ve been specializing in providing commercial property and liability insurance for businesses that sell or service autos, trucks and motorcycles.

They offer a wide assortment of products including commercial property, general liability, garage liability, commercial and personal umbrella, workers' compensation, life insurance, finance & insurance products, and more. They're your one-stop-shop, offering you the convenience of working with one organization for your insurance needs. You can also benefit from their risk engineering consulting services tailored to your business exposures and a major loss team that can respond within 48 hours of a disaster - a team with the experience and authority to settle catastrophic claims quickly.

Click here for to view their monthly Loss Prevention Bulletin – this month, Helping Yourself Stay in Business 

Top