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  • Friday, March 15, 2024 9:30 AM | Anonymous member (Administrator)

    The CATA is proud to announce its endorsement of Vitu’s National Title Exchange (NTX) solution for digital title processing for the association's more than 400 dealer members.  NTX is a proven solution, and with hundreds of thousands of physical titles issued to date, Vitu has already saved its partners millions of dollars in lost revenue. NTX speeds up the titling process, saving dealers an average of $241 per vehicle in holding costs, and reduces their title acquisition process from, in many cases, 30+ days to three business days or less.

    Vitu’s NTX is the nation’s first and only E-Titling solution created especially for dealerships. The process is simple: Obtain a chain of custody by either uploading documents or running an MVR (Motor Vehicle Record), obtain a lien satisfaction, if necessary (even if you only have a screenshot), and digitally sign, upload and submit documents. 1, 2, 3, done — it’s that easy to get a physical title in hand in 1-3 business days.

    Plus, it’s all backed by Vitu’s unmatched support and powerful auditing teams, ensuring partners always have the help they need to get that paperwork submitted on time and correctly.

    Even better, there is no additional monthly fee to use NTX – you only pay for NTX when you use it.  This ground-breaking product, though, is only available to customers of Vitu’s industry leading Electronic Registration and Title platform.

    To learn more about NTX, please take a look at this brochure or visit the NTX page on the Vitu website here. And to sign up or schedule a quick demo of NTX, reach out to Aaron Palmer at 312-883-2332.

  • Friday, March 15, 2024 9:00 AM | Anonymous member (Administrator)

    Clean vehicle dealers and sellers must use this online tool to register with the IRS and to submit time-of-sale reports. Licensed dealers can also register to receive advance payments to offset the amount of a tax credit that was applied toward a customer's purchase price.

    All time-of-sale reports for vehicles placed in service in 2024 and forward must be submitted through this tool.

    Some dealers have experienced technological glitches when using the IRS tool. As of last week, it was reported that most of those kinks were worked out. The biggest problem related to the issuing of credits is due to dealers incorrectly entering their time-of-sale reports and incorrect banking information that doesn’t match up with the dealer’s name. In other words, the primary issues are due to user error. However, if you’re a dealer and are getting hung up on the technical side, feel free to contact the CATA and we’ll connect you with a resource at the NADA to further investigate if you want to avoid the IRS “Help Desk.”

    Another item to note: Once the dealer goes in and enters a time-of-sale report, as it currently stands, the system will not allow the dealer to modify the submission as the system was originally intended to do. IRS reports this feature should hopefully be live shortly, but if you run into this issue, contact the CATA and we can try a workaround via the NADA.

    NADA reports there are now a total of 12,000 dealers that have registered via the IRS portal. Follow these important steps to register your dealership:

    What you will need

    The IRS uses ID.me, a technology provider, to provide identity verification and sign-in services.

    • If you have an ID.me account, sign in using your existing account.
    • If you're a new user, have your photo identification ready. Verify your personal identity – not your business information – with ID.me.

    Once you sign in, follow the instructions to register your business. You'll need to be an authorized representative of the business with the following pieces of information:

    • Your business's employer ID number (EIN)
    • Business name and address
    • If you're a licensed dealer that will receive advance payments, your dealership's license number and bank routing and account numbers

    You'll use the business tax account application to complete this registration. See below for a detailed user guide and other information that might help you through this process.

    Who can use this

    Dealers and sellers of clean vehicles must use this online tool to register and report clean vehicle sales that occur on or after January 1, 2024. This includes manufacturers who sell directly to customers.

    Once registered, dealers and sellers must use this tool to furnish required information to the IRS for those vehicles to be eligible for a credit under IRC 30D (and for the buyers to receive credits).

    A licensed dealer will be able to receive advance payments 15 days after registering.

    Accessing this tool lets you:

    • Register the dealership
    • Review registration details
    • Update business information
    • Licensed dealers only: Designate employees who are authorized by your organization to access this tool
    • Licensed dealers only: Register to receive transferred credits from your customers and advance payments from the IRS
      • Transfers began on Jan. 1, 2024
    • Submit time-of-sale reports for new vehicles
    • Licensed dealers only: Submit time-of-sale reports for used vehicles
    • Review submitted time-of-sale reports
  • Friday, March 15, 2024 9:00 AM | Anonymous member (Administrator)

    The Better Business Bureau/CATA advertising review program, initiated in 1996, continues to provide valuable guidance for dealers as they navigate their advertising practices in light of evolving marketplace factors and the Illinois Motor Vehicle Advertising Regulations. Through the program dealers can self-regulate and avoid enforcement issues while they successfully operate their businesses.

    The BBB has increasingly encountered advertised price disclosures that contain so many qualifiers as to run afoul of rule 475.310 of the Illinois Motor Vehicle Advertising Regulations. Here is the rule language:

    Section 475.310  Advertised Price

    It is an unfair or deceptive act to advertise the total price of a motor vehicle without including in the advertised price all costs to the purchaser at the time of sale , or which are necessary or usual prior to delivery of such vehicle to the purchaser, including any costs of delivery, dealer preparation and any other charges of any nature; provided, however, taxes, license and title fees and a documentary service fee, as defined herein, may be excluded from the advertised price if clearly disclosed in the advertisement that these costs are excluded from the advertised price. Purchasers shall be able to purchase all vehicles described by the advertisement at the advertised price.

    SOURCE: Amended at 25 Ill. Reg. 4819, effective March 20, 2001.

    Rule 475. 310 contains two unambiguous requirements.

    It allows dealers to exclude four specific items from the advertised price of a vehicle which are: tax, title, license, and the current dealer doc fee. This year it is 358.03.  A dealer must also clearly disclose that these fees are excluded from the price.

    The history of this standard includes the policy that all costs and all necessary and usual amounts must be bundled into the advertised price, except these four items, so that consumers fully understand the price and do not experience surprise costs during the transaction process, raising the advertised price to a higher price.

    Of course, consumers can always choose to purchase aftermarket products at the time of sale, raising the price.  They are aware of this and make those choices with full knowledge. That is how car buying works.

    The second requirement is that all purchasers must be able to purchase advertised vehicles at the advertised price.

    With the growing prominence of internet advertisers and manufacturers providing content for dealers we are seeing price disclosures that attempt to cover every imaginable situation.  Dealers often don’t know such disclosures are included in their price listings.

    The two standards of 310 are often lost as a result.

    Here are some examples the BBB has recently found on dealer websites which are non-compliant with Rule 475.310:

    “It (price) does not include sales tax, vehicle registration fees, finance charges, documentation charges, and any other fees required by law.  The estimated selling price that appears after calculating dealer offers is for informational purposes, only. You may not qualify for the offers, incentives, discounts…”

    “Prices include all available rebates and incentives. Prices do not include additional fees and costs of closing, including government fees and taxes, any finance charges, any dealer documentation fees, any emissions testing fees or other fees. All prices, specifications and availability subject to change without notice. Contact dealer for most current information.”

    “Prices include all applicable rebates, but do not include additional fees and costs of closing, including government fees and taxes, any finance charges, any dealer documentation fees, any emissions testing fees or other fees. All prices...subject to change without notice.”

    “The advertised price does not reflect the final selling price. It does not include sales tax, vehicle registration fees, finance charges, documentation charges, dealer installed options, and any other fees required by law. We attempt to update this inventory on a regular basis. However, there can be a delay between the sale of a vehicle and the update of the inventory. Pricing and availability may vary based on a variety of factors, including options, manufacturer employee pricing, specials, fees, and financing qualifications. The estimated selling price that appears after calculating dealer offers is for informational purposes, only. You may not qualify for the offers, incentives, discounts, or financing. Offers, incentives, discounts, or financing are subject to expiration and other restrictions. See dealer for qualifications and complete details. Not responsible for clerical or typographical errors”

    “Starting MSRP excludes transportation, taxes, title, other options, and dealer charges. Dealer sets actual price. Specifications, equipment, options, and prices are subject to change without notice.”

    The above disclosures exclude many more items from an advertised price than allowed by the Rule.  They also directly or indirectly take away the advertised price which must be available to all. 

    The BBB has written many letters on this subject in recent weeks, and we want to shine a light on the practice for all dealers so they can avoid issues around Rule 475.310.

    The BBB continues to monitor the marketplace to ensure a fair and honest market for all dealers and to notify dealers of problematic content in their advertisements including their websites.   

  • Friday, March 15, 2024 9:00 AM | Anonymous member (Administrator)

    For the first time, the Chicago Automobile Trade Association (CATA), producers of the Chicago Auto Show, hosted “Driving Future Leaders: Automotive Career Day” at the 2024 Chicago Auto Show on Tuesday, Feb. 13. More than 1,400 students attended the day that highlighted the vast career opportunities available across the dynamic auto industry.

    “There are many career opportunities within the auto industry, and the Chicago Auto Show is the perfect backdrop to make those connections to young people,” said Morand. “The first-year event was a success, and wheels are already in motion to make the Automotive Career Day event even bigger and better for next year!”

    The day kicked off with Teen Innovation Summit, powered by Toyota and Toyota Lexus Minority Owners Dealership Association, to highlight the variety of careers within the industry. The Teen Innovation Summit was produced by an award-winning educational nonprofit organization that helps students from diverse backgrounds to discover and navigate career pathways in creativity, technology, and business.

    “We are thrilled to partner with the Chicago Auto Show,” said Teen Innovation Summit Founder Alissa Constable. “Together we are creating a dynamic environment to learn from leaders and be immersed in innovations in the automotive industry.” 

    Students were able to join sessions with speakers from Northwood University and Women in Automotive, as well as meet one-on-one with representatives from Illinois Tollway, Powering Chicago, US Army, and the University of Illinois Solar Car team as part of the career fair segment of the event.

    “The Chicago Auto Show was a wonderful opportunity to showcase the opportunities and growth in the industry, but the most beautiful thing is to look down the road to see the next generation leaders to innovate and grow in the auto industry,” said Kathy Gilbert, Founding Board Member of Women in Automotive.

    The program concluded with a panel discussion “Career as an Automotive Technician” with representatives from Apple Chevrolet, BMW and the CATA, producer of the Chicago Auto Show. Following the sessions, students enjoyed the show, participated in interactive exhibits including test tracks, and spoke to representatives from the auto manufacturers and related exhibitors.

  • Friday, March 15, 2024 9:00 AM | Anonymous member (Administrator)

    The car-shopping marketplace unveiled the winners of its annual Dealer of the Year Awards (DOTY)to the top automotive dealers. Out of the more than 50,000 U.S. and Canadian auto dealers with profiles, 987 were honored as Cars.com DOTY recipients based on more than one million online consumer reviews submitted in 2023. Winners were selected based on average star rating, total number of reviews and dealer response to those reviews — all key drivers of repeat and referral business.

    “Local dealerships are central to vehicle buying, and our DOTY Awards highlight the many local retailers who take pride in their reputation, striving each and every day to provide a five-star experience for their customers,” said Jamie Oldershaw, vice president of reputation at Cars.com. “A consumer submits a dealership review every 27 seconds on Cars.com, providing dealers with valuable real-time feedback and shoppers with firsthand information about a dealership’s customer experience.”

    Award-winning dealers earned 21X more consumer reviews than non-winning dealers, highlighting the importance of online reputation and how it helps build long-term, trusted relationships between a customer and dealer. Year after year, high levels of responsiveness and individual dealership employee accountability are the most reliable predictors of dealer success in the DOTY Awards. Eighty percent of honorees respond to consumer reviews compared to only 41% of non-winning dealers, and about half respond to 90% or more of their reviews.

    Furthermore, nearly two-thirds of DOTY winners leverage Employee Profile Pages for their dealership staff, which allows car shoppers to ask questions and connect directly with salespeople before ever stepping foot on the lot. More than 195,000 dealership employees received over 1.4 million individual ratings last year, an 8.5% increase from 2022.

    This year’s Cars.com Dealer of the Year Award winners include:

    • Midwest: Phillips Chevrolet
    • Chrysler/Dodge/Jeep/Ram: Taylor Chrysler Dodge Jeep Ram
    • Ford: Arlington Heights Ford

    A full list of winners can be found here.

  • Friday, March 15, 2024 9:00 AM | Anonymous member (Administrator)

    As a CATA member, you have access to HR and Employee Relations Support from SESCO at no charge. SESCO also hosts training webinars at additional, albeit, reduced costs. Here’s a listing of upcoming SESCO webinars:

    • March 20: Core HR Systems That Every Business Needs
    • April 3: How to Find and Keep Good Employees
    • April 17: Navigating the Complexities of Wage and Hour Compliance
    • May 1: The Americans with Disabilities Act as Amended and Reasonable Accommodations in the Workplace
    • May 15: Eliminating the Confusion on the Family Medical Leave Act (FMLA)
    • May 29: Building an Effective Employee Relations Program-Union Awareness 101
    • June 12: Reasonable Suspicion Training
    • June 26: Management’s Role in Recognizing & Preventing Harassment and Discrimination in the Workplace

    Tuition: $60.00 per person, per webinar

    Tuition includes a copy of the PowerPoint presentation and live recording emailed to registered individuals.

    Please click HERE to register for SESCO’s 2023 Webinars

    (Requests for cancellations or substitutions will be honored if they are received seven (7) days prior to the beginning of the seminar. The person(s) may be registered for another webinar session or other names may be substituted; otherwise, the company will be billed for the full amount of the webinar.)


  • Friday, March 15, 2024 9:00 AM | Anonymous member (Administrator)

    [From Cox Automotive] Wholesale used-vehicle prices (on a mix, mileage, and seasonally adjusted basis) were down in February compared to January. The Manheim Used Vehicle Value Index (MUVVI) fell to 203.8, a decline of 13.1% from a year ago. The index was down 0.1% against the month of January 2024. The seasonal adjustment magnified February’s results. The non-adjusted price in February increased by 1.7% compared to January, moving the unadjusted average price down 11.0% year over year.

    “Though February activity was muted as we started the month, we saw more activity in the lanes at Manheim in the second half of the month and finished the last week of February with some of the strongest weekly gains in wholesale prices for many years,” said Jeremy Robb, senior director of Economic and Industry Insights for Cox Automotive. “Tax refunds have picked up over the last two weeks, with the average refund now 4% higher than 2023 levels at this time. This has put money into consumers’ pockets, and retail purchase activity is increasing. In turn, dealers are coming to the lanes and buying units at Manheim right at the start of the spring selling season for wholesale markets.”

    In February, Manheim Market Report (MMR) values saw above-average weekly increases for most of the month and ended February on a high note. Over the last four weeks, the Three-Year-Old Index increased an aggregate of 1.6%, including a rise of 0.8% in the last week of the month. Those same four weeks delivered an average increase of 0.8% between 2014 and 2019. Over the month of February, daily MMR Retention, which is the average difference in price relative to the current MMR, averaged 99.9%, meaning market prices were just below MMR values but moved higher than January. The average daily sales conversion rate increased to 61.0%, which indicates that demand was improving relative to January, normal for this time of year. For comparison, the daily sales conversion rate averaged 58.6% in February during the last three years.

    The major market segments saw seasonally adjusted prices that remained lower year over year in February. Compared to February 2023, luxury lost less than the industry, down just 12.0%, and SUVs performed a little better than the industry, declining 12.8%. Compact cars continued as the worst performers year over year, down 16.5%, followed by midsize cars, off by 15.1%, and pickups, down 14.3%. Compared to last month, trucks lost 1.4%, and compact cars were down 0.2%. Declining less than the market overall, midsize cars were up 0.8%, and both luxury and SUVs increased 0.3%.

    With the increase in interest in electric vehicle (EV) values versus the non-EV market, we are working on sharing metrics for those segments. Seasonally adjusted EV values for February 2024 were down 15.0%, while non-EVs were down 12.0% year over year. If we look at values against last month, seasonally adjusted EV values increased 1.0% from January 2024, while non-EVs increased by 0.3% over the same period.

  • Friday, March 15, 2024 9:00 AM | Anonymous member (Administrator)

    Service Advisor sales training is commonly overlooked and underfunded as part of the overall health of Fixed Operations. Addressing widespread underperformance and inconsistencies can greatly impact your hours and dollars per repair order (RO) and therefore your profit margins.

    Dynatron’s SellSmart solution is a customized, dealer-specific, sales training program for your Service Advisors and their managers. In 2023, our Coaches completed 97,000 training meetings!

    This allows our Coaches to create realistic and achievable goals. Then, your service team receives regular on-site visits throughout the year while we also work to constantly report progress. In the event goals are not being met, customized training can be adjusted or re-enforced. Get in the Know with Dynatron, check out our blog to learn more!       

  • Friday, March 01, 2024 9:00 AM | Anonymous member (Administrator)

    Automotive News released its “Best Place to Work” application for dealers. With new categories, and an expanded list of 150 winners, dealers may opt to complete the application to be considered as the “Best Place to Work.”

    Click here to apply: Home (bestdealershipstoworkfor.com)  

    The deadline to apply is April 19, 2024.

  • Friday, March 01, 2024 9:00 AM | Anonymous member (Administrator)

    Forecasters expect U.S. auto sales in February to increase modestly, but only modestly – a percent increase of low single digits vs. February 2023, adjusting for the fact that February 2024 has an extra day, since it’s a Leap Year. For example, analysts for S&P Global Mobility, and in a joint forecast from J.D. Power and GlobalData separately each predict a forecast for U.S. new-vehicle sales that rounds up to about 1.2 million cars and trucks, in February 2024.
    Source: Forbes [LINK: February Auto Sales: Selection Is Better, But Rates And Payments Are High (forbes.com)]

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