| |
|
|
2011 IADA OFFICERS
Chairman
Tim Mooney
Tim Mooney, Inc.
Tuscola
Vice Chairman
Jim Lombardi
Lombardi Chev Buick
Wilmington
Treasurer
Gary Knight
Carmack Car Capitol
Danville
Secretary
Mike Mangold
Mangold Ford
Eureka
President
Peter Sander
IADA
Springfield
|
|
| |
|
|
Your
IADA
Partner
Moving Vehicle Registration Into The Future
(click logo for more details)
Your
IADA
Partner
For Insurance Solutions
to Protect Your Dealership
(click logo for more details)
|
|
|
June 23, 2011 Vol 2011, Issue 7
| |
NADA DIRECTOR RE-ELECTED
|
|
| |
Jamie Auffenberg, Jr. of St. Clair Auto Mall, O’Fallon; Auffenberg Ford South, Belleville and Auffenberg Ford North, O’Fallon, was chosen by NADA’s Illinois dealer members as the sole nominee for re-election to the office of NADA director, following last month’s election. Mr. Auffenberg, Jr., who has served in this capacity since July of 2010, will begin a new three year term at the NADA Convention in early 2012, and the term will end at the convention in 2015. Mr. Auffenberg, Jr. is also a current member of the IADA Board of Directors and Past Chairman of the AIADA. IADA extends our appreciation and congratulations to Jamie on his nomination for serving as your representative on the NADA Board of Directors.
|
|
|
Top
|
| |
DEPARTMENT OF REVENUE DEALER TAX FORUM
|
|
| |
 Last week, IADA hosted a Motor Vehicle Dealer Tax Forum in which members of the Illinois Department of Revenue’s Legal and Audit Divisions met with a group of IADA members. The forum included presentations by IDOR General Counsel, John McCaffrey, Deputy General Counsel, Agostino Lorenzini, Deputy General Counsel, Mark Dyckman, Senior Counsel, Terry Charlton, and Sales Tax Audit Division Manager, Roger Koss and a question and answer session with dealers. Highlights of the forum included a discussion about the proper use of trade-in credits, proper documentation of sales at local auctions, taxation of goodwill repairs and repairs made pursuant to warranties and service contracts, and sales and leases of vehicles to residents of non-reciprocal states. The video will be available soon on IADA’s website at www.illinoisdealers.com.
Mr. McCaffrey strongly urged dealers to file their ST-556 forms electronically. He indicated that the very low error rate with the electronic filing benefits dealers by resulting in less frequent Tax Liability Notices from the Department of Revenue. If your dealership is not filing electronically, please contact IADA to get enrolled in the CVR program!
|
|
|
Top
|
| |
LEGISLATURE RETURNS FOR ONE DAY TO SPRINGFIELD
|
|
| |
The Illinois Legislature returned to Springfield for a brief one day session in which they quickly approved legislation to ensure that work will continue on Illinois massive statewide construction plan.
Lawmakers also voted to cut their own pay, with the measure unanimously passing in the House, but saw four Senators casting opposing votes for its passage with 48-4 votes.
Both the construction package and the pay cut go to Quinn's desk for his signature.
|
|
|
Top
|
| |
FORD PRESSURING LINCOLN DEALERS TO REMODEL THEIR DEALERSHIPS
|
|
| |
Automotive News recently reported that Ford Motor Company will pressure Lincoln dealers to make significant investments to upgrade their dealership facilities. Click here to view article
Fortunately, the Illinois Motor Vehicle Franchise Act contains important protections for dealers who are unable or unwilling to make those investments at this time. For example, the Act prohibits a manufacturer from arbitrarily reducing vehicle allocation, which prevents the manufacturer from reducing the allocation to dealers who do not make facility upgrades. Similarly, the Act prohibits a manufacturer from terminating a dealer’s franchise agreement for refusal to make requested facility upgrades. If you are considering a buyout offer from the manufacturer, you should be aware that the Franchise Act provides that a manufacturer cannot terminate your franchise agreement without providing reasonable compensation. Under the Act reasonable compensation includes:
- The fair rental value of your dealership premises for one year;
- The cost of new, undamaged vehicle that you acquired within the last 12 months and that have fewer than 500 miles recorded on the odometer;
- The cost of unused parts and accessories;
- The fair market value of any signs bearing the manufacturer’s trademark or trade name that are owned by the dealer; and
- The fair market value of all special tools and data processing and automotive service equipment purchased at the request of the manufacturer.
Although the reasonable compensation requirement arises only in the context of a manufacturer termination, it can be a useful tool when negotiating a voluntary sale or closure of your franchise. |
|
|
Top
|
| |
AMERICAN FIDELITY OFFERS MANY EMPLOYEE OPTIONS
|
|
| |
Partnering with American Fidelity gives you an array of employee benefit options through a broad portfolio of supplemental insurance products. You have access to competitive Core Benefits such as Health, Dental and Vision insurance, Administrative Services that include Section 125 Administrative Services, Flexible Spending Accounts, and Health Savings Accounts, and Enrollment solutions that include individual benefit counseling, group education meetings, electronic benefit enrollment, and enrollment reviews. Benefits are rated on a group basis and not individual basis.
To learn more about maximizing your Section 125 Plan today contact IADA and we will put you in contact with an American Fidelity representative.
|
|
|
Top
|
| |
CHANGES TO ADVERSE ACTION NOTICE
|
|
| |
The Dodd-Frank Act brings changes to adverse action notice requirement and Dealers must be prepared for a new federal disclosure requirement that takes effect July 21, 2011, the designated transfer date under the Dodd-Frank Act.
The Dodd-Frank Act requires that creditors add five disclosures to their adverse action and risk-based pricing notices:
- the consumer’s credit score;
- the range of possible credit scores under the model used to generate the score;
- the key factors that adversely affected the consumer’s credit score in the model used;
- the date on which the score was created; and
- the name of the person or entity that provided the credit score.
The key factors (the third item) explain the credit score and are provided by the entity that provided the score. Creditors must list up to four key factors; if one of the key factors is the number of inquiries made with respect to that credit report, then the creditor must list up to five key factors.
The changes to the risk-based pricing notice do not affect dealers who issue credit score disclosure exception notices in lieu of risk-based pricing notices.
Regarding the changes to the adverse action notice, the new disclosures apply to creditors who used a credit score in taking adverse action. The new disclosures add to the disclosures that must be made under the Fair Credit Reporting Act. (Keep in mind that the Equal Credit Opportunity Act imposes on participating creditors who take adverse action a separate adverse action notice requirement with different disclosures.)
The NADA will revise its Driven publication entitled “A Dealer Guide to Adverse Action Notices” to explain the changes and to modify its sample adverse action notice form (at Appendix B). However, the NADA cannot do so yet because the Federal Reserve Board has not finalized the changes to its model forms (from which the dealer association’s model form is derived). Several vendors who produce adverse action notices for dealers also are waiting on the Fed to release its final model forms before modifying their own.
The NADA is developing the following resources to assist dealers in complying with the new credit score disclosure requirements:
- a soon-to-be-released short video that generally outlines the forthcoming disclosure requirements;
- a revision to the NADA’s Driven adverse action guide that will be released shortly after the Fed finalizes the modifications to its model adverse action notice forms (dealers will be able to access the guide at www.nadauniversity.com); and
- a Learning Hub webinar on the new requirements, scheduled for 12-2 p.m. CDT Wednesday, July 6.
NADA University will disseminate information on the registration procedures and pricing for the webinar.
|
|
|
Top
|
| |
BANK CORRESPONDENCE WITH DEALERS ON CHARGED OFF ACCOUNTS
|
|
| |
On June 16th, IADA sent out an e-mail message to dealers in select counties inquiring whether your dealership recently received a letter from a bank that your dealership sold retail installment contracts to requesting that your dealership repay unearned finance charges on accounts that the bank should have charged off several years ago. (Some of these accounts are more than 10 years old!) IADA recommends discussing this matter with your legal counsel before contacting the bank. In a follow up to that e-mail IADA forwarded correspondence to dealers in select counties recommending several items for you to consider when discussing this situation with your attorney and/or the bank. If your dealership needs additional information regarding this correspondence please contact Larry Doll in the IADA office.
|
|
|
Top
|
| |
DEALERSHIP ENERGY USEAGE SURVEY
|
|
| |
To help dealerships compare their energy use to others nationwide and create a dealership energy rating, NADA, in partnership with the EPA’s ENERGY STAR program, is urging dealers across the country to complete a new survey on dealership energy use.
By July 15, 2011, dealers are asked to complete the Dealership Energy Use Data Survey, available online at www.nada.org/energystar.
A minimum of 400 completed surveys representing a cross-section of dealership building types and locations is required. The survey data collected will be analyzed to learn more about the average dealership energy use and to identify the key drivers of energy consumption. The goal is to create a 1 to 100 ENERGY STAR performance scale, enabling dealerships to assess their energy performance, make informed investment decisions and publicize their energy-efficiency achievements. Dealerships with energy performance scores of 75 or higher will be eligible to earn an ENERGY STAR designation.
Since 2007, NADA has partnered with ENERGY STAR to inform dealerships about energy reduction and cost saving strategies. For more information, visit www.nada.org/energystar. For questions about the survey, contact Keisha Morton at kmorton@nada.org or Douglas Greenhaus at dgreenhaus@nada.org.
|
|
|
Top
|
| |
ZURICH WEBINAR
|
|
| |
The IADA endorsed property casualty provider Zurich is pleased to invite you to join us Thursday, June 30 at 11 am Central Time for a complimentary Webinar: "Plan to survive a disaster: How to reduce the impact to your business”
This webinar will help automotive businesses better understand the various disasters that could devastate their businesses and how to identify potential gaps in business insurance. In addition, Zurich will provide tips on how to minimize supply chain disruption and how to best pre-plan for "after disaster" activities to help avoid a major disruption in their businesses – or in worst case situations, get their businesses back up and running faster. Register Now
|
|
|
Top
|
| |
NADA DIRECTOR NEWSLETTER - JAMIE AUFFENBERG JR., ILLINOIS STATE NADA DIRECTOR
|
|
| |
NADA has expressed concern with a proposal the Obama administration is pushing to extend tax rebates to consumers at the dealership when they purchase an electric vehicle.
The government currently offers a $7,500 tax credit on the purchase of electric vehicles. Transportation Secretary Ray LaHood supports a point-of-sale rebate, comparing it to the 2009 Cash for Clunkers program.
The NADA pointed out that LaHood’s proposal, however well intentioned, would needlessly complicate the car-buying process. Furthermore, changing the vehicle tax credit is unnecessary; the current tax credits have been successful in stimulating consumer interest in emergent technologies. The rebate proposal is so complicated that it likely would deter sales of alternative fuel vehicles, which is exactly the opposite effect that LaHood intends.
In other NADA news . . .
• Days after tornadoes ripped through parts of Iowa and Alabama in late April, the National Automobile Dealers Charitable Foundation mobilized its Emergency Relief Fund to aid dealership employees recovering from the deadly storms.
Six people have received grants from the foundation to help them get back on their feet after losing their homes and most of their possessions. And the foundation continues to seek donations to help more dealership employees displaced by natural disaster, as the need for aid rises.
Jack Leigh, of Leigh Automotive, says the tornadoes on April 27 left thousands in his community of Tuscaloosa, Ala., either without homes or with severe damage. At least two dealerships in Tuscaloosa suffered substantial damage.
The foundation’s Emergency Relief Fund aids recovery efforts after natural disasters, such as flooding, hurricanes and tornadoes. Since the program started in 1992, it has provided more than 7,500 dealership employees with financial assistance totaling almost $5 million.
If you know a dealership employee affected by the tornadoes or would like to donate to the NADA Charitable Foundation’s Emergency Relief Fund, contact the foundation at (703) 821-7233 or foundation@nada.org.
• First quarter results of NADA’s monthly Dealership Financial Profile, which provides a snapshot of the financial condition of the average new-car dealership, portrays an industry well into recovery, says NADA Chief Economist Paul Taylor. Despite challenges such as higher gas prices and generally slow economic growth during the first quarter, total sales at the average dealership were up 22.5 percent while expenses increased just 14.2 percent. The stronger financial performance yielded net profits before taxes of 2.4 percent for the typical dealer, Taylor says, which represents a 34 percent increase over performance in the first quarter of 2010. “Dealers showed strength in all areas of operations in the first quarter,” Taylor said. “Their strong performance suggests that as new-car production is restored, the stage is set for continued strong growth in the future.” For more analysis from NADA’s Industry Analysis group and Chief Economist Paul Taylor, visit NADA’s Dealership Financial Profiles online. http://www.nadafrontpage.com/1173.xml.
• The 2012 NADA and ATD Convention and Expo will be Feb. 3-6 in Las Vegas. It will be the first time the two conventions will be held together. ATD members will participate in events geared solely to the trucking industry, including luncheon general sessions at the Las Vegas Hilton Hotel. And ATD and NADA registration, franchise meetings, workshops and expos will take place in the Las Vegas Convention Center adjacent to the Las Vegas Hilton. ATD attendees also will be able to attend the NADA expo, workshops and general sessions. And they can stay at any hotel of their choice in NADA’s block. Online registration for the NADA and ATD conventions will open in mid-July at www.nadaconventionandexpo.org and www.atdconventionandexpo.org.
• A bogus website, http://nadaguides.zxq.net/vehicle/purchase/protection, has been set up to look like the legitimate website of NADAguides.com. The fraudulent Web page offers services for “Auto Purchase Protection” and facilitates the transfer of funds between buyers and sellers. This Web page has no connection with the NADA or NADAguides.com. The NADA is attempting to shut down the site, which appears to be hosted overseas.
• Dealer Executive Education is forming a class for August at Babson College in Babson Park, Mass. The curriculum is an integral part of the dealer development program of NADA University. Babson’s MBA program is ranked number one in the country for entrepreneurship, a distinction it has earned for 17 consecutive years. Its focus on innovation and what Babson faculty call “opportunity obsession” are key. Visit the NADA University Website to download a brochure and learn more. Don’t wait—apply today.
|
|
|
Top
|
| |
IADA SERVICES
|
|
| |
The Illinois Automobile Dealers Association is an organization of franchised new car and truck dealers founded in 1920 whose purpose is to promote an ethical, favorable business climate, and to serve the common needs of its members through services, education and representation. Use your IADA member services to get the most from your IADA membership. Let us help you.
Quick Link to our IADA www.IllinoisDealers.com homepage
from the homepage click on "Membership" and "IADA Services"
Member login required: Dealer ID is membership number printed on your IADA membership invoice
|
|
|
Top
|
| |
OUR IADA PARTNER - ZURICH
|
|
| |
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.
|
|
|
Top
|
|
