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  • Friday, January 05, 2024 9:00 AM | Anonymous member (Administrator)

    NADA and the Texas Automobile Dealers Association (TADA) filed a challenge to the FTC’s Final Vehicle Shopping Rule in the U.S. Court of Appeals for the 5th Circuit. The purpose of the legal challenge is to prevent the implementation and enforcement of the rule, which dealers must comply with by July 30, 2024. NADA is also supporting federal legislation to this effect. A simple one-page guide provides two key messages explaining the action. The CATA will provide any updates from the NADA.

    It’s important to stress the need for NADA PAC support to assist with efforts such as this one that will negatively impact consumers, but also the consumer.

  • Friday, January 05, 2024 9:00 AM | Anonymous member (Administrator)

    [From Automotive News] General Motors and Ford Motor Co. eked out small fourth-quarter gains while Toyota Motor Corp. and Honda Motor Co. finished 2023 with double-digit sales increases in December, capping the U.S. auto industry's best full-year total since 2019.

    But there are signs of a slowing market as automakers head into 2024, as elevated borrowing costs and new-vehicle prices sideline some shoppers. Among major automakers, Stellantis was the only one to post a fourth quarter and annual decline.

    SAAR outlook
    The seasonally adjusted, annualized rate of sales is projected to tally 15.1 million to 15.4 million for December, forecasters say, up sharply from 13.77 million in December 2022. Still, the sales pace has cooled since its 2023 peak of 16.22 million in June.

    New-car and light-truck stockpiles totaled 2.56 million vehicles at the beginning of December, more than 900,000 above levels a year earlier, Cox Automotive said. J.D. Power and GlobalData estimated that retail inventory finished December around 1.7 million vehicles, a 7.6 percent increase from November and a 55 percent jump from December 2022. However, stockpiles remain 40 percent lower than before the COVID-19 pandemic, they said.

    Average new-vehicle discounts were expected to rise $145 from November and 91 percent from December 2022 to an estimated $2,458 last month, J.D. Power and GlobalData said. In November, incentives exceeded $1,000 per vehicle at every major automaker; in the case of the Detroit 3, incentives topped $2,400, according to Motor Intelligence.

    Click here to get complete sales results for 2023 (subscription required).

  • Friday, January 05, 2024 9:00 AM | Anonymous member (Administrator)

    The 2024 What Drives Her program returns to the Chicago Auto Show Media Preview held Feb. 8 at McCormick Place. This program, now in its seventh year, celebrates women in the industry who are deserving recognition.

    At a local level, the Best Retailer award calls on CATA dealers to nominate an extraordinary female at your dealerships. 

    Who Should Be Nominated for the Best Retailer Award? This person demonstrates a high level of commitment and drive to any task at hand, whether that’s in sales, service, finance or technical support. Nominees must be employed by a Chicago-area dealership.

    Prior year award recipients include Megan Deters, sales manager at Brilliance Honda, and Soledad Romero, store manager at Romeoville Toyota.

    Nomination submissions are due Monday, January 15.

    Submit Your Nomination

  • Friday, January 05, 2024 9:00 AM | Anonymous member (Administrator)
    • The Internal Revenue Service (IRS) has released the optional standard mileage rates for 2024.
    • The standard mileage rates for 2024 are: 67 cents per mile for business uses; 21 cents per mile for medical uses; and 14 cents per mile for charitable uses.
    • FAVR allowance for 2024. For purposes of the fixed and variable rate (FAVR) allowance, the maximum standard automobile cost for vehicles places in service after 2023 is $62,000. Employers can use a FAVR allowance to reimburse employees who use their own vehicles for the employer’s business.
  • Friday, January 05, 2024 9:00 AM | Anonymous member (Administrator)

    The 2024 COX Automotive Sales Forecast for 2024 details five key insights that will likely steer future sales. Those include the following:

    1. Slow Growth Ahead, But It Sure Beats a Recession.
    2. Vehicle Supply Is Back, Favoring Consumers, Placing Downward Pressure on Prices.
    3. In 2024, We Officially Bid Farewell to the Seller’s Market.
    4. In the Electric Vehicle Market, 2024 Will Be the Year of More – More Models, More Incentives, More Discounting, More Advertising, and More Sales Muscle.
    5. In the Electric Vehicle Market, 2024 Will Be the Year of More – More Models, More Incentives, More Discounting, More Advertising, and More Sales Muscle.

    COX also detailed some interesting trends in 2023:

    • Three-year-old wholesale depreciation finished the year at 86.0%, approximately 4.0% lower than pre-Covid years and 6.6% higher than last year. Used retail and new retail sales finished strong the end of December, pushing down days’ supply for both.
    • Dropping 0.6% week over week, the 3 year-old MMR index finished the year at 86.0%. The pre-Covid years averaged ~90.0% and 2022 finished at 79.4%.
    • Non-luxury finished down 12.2% from week one and luxury finished down 17.8%.
    • 2020 model year non-luxury wholesale values decreased 12.2% in 2023 and retail values decreased 14.1%.
    • 2020 model year luxury wholesale values decreased 17.8% and retail values decreased 21.9%.
    • Six-week lagged spreads dropping some for non-luxury due to end of the year retail depreciation and increasing for non-luxury due to sharper wholesale declines a few weeks ago.
    • During 2023, 2020 model year non-luxury retail values decreased 14.1% and luxury decreased 21.9%.
    • Used retail sales ended the year relatively strong. Days’ supply dropped to 43 days.
    • New car sales also ended the year relatively strong, pushing days’ supply down to 52.

    Click here to read the full forecast.

  • Friday, January 05, 2024 9:00 AM | Anonymous member (Administrator)

    Beginning January 1, 2024, new Federal regulations go into effect that will require many corporations, limited liability companies, and other U.S. and foreign entities created in or registered to do business in the United States to report information about their beneficial owners—the persons who ultimately own or control the company—to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). 

    These new reporting requirements were created in 2021 under the Federal Corporate Transparency Act to strengthen the integrity of the U.S. financial system by making it harder for illicit actors to use anonymous shell companies to launder their money or hide assets.   

    Companies formed or registered before January 1, 2024, will have until January 1, 2025, to file their initial beneficial ownership information (BOI) reports. Reporting companies created on or after January 1, 2024, and before January 1, 2025, must report their BOI within 90 days of their formation.  After January 1, 2025, the BOI must be filed within 30 days.

    Reporting companies must report beneficial ownership information electronically through FinCEN's website. Reporting via the FinCEN website is not yet operative, reports will be accepted starting on January 1, 2024.

     Under the rule, federal, state, and local law-enforcement agencies, foreign governments, and financial institutions would be able to obtain the information, but it would be housed in a secure registry, and many of those seeking it would have to make formal requests and face other restrictions. Some requesters would have to obtain court orders to get the information or work through intermediaries.

    To learn more about this reporting requirement, please see the resources below.

  • Friday, January 05, 2024 9:00 AM | Anonymous member (Administrator)

    If you received ERC funds without having the requisite reduction of revenue, read the article linked below for the escape plan.

    Here’s a summary:

    • This IRS program requires qualifying businesses to repay 80% of their ERC claim received.
    • Employer must provide names, addresses, and phone numbers of the claim preparers.
    • No penalties or interest will be charged.
    • You can request an installment agreement if you can’t repay the required 80%.
    • Participation in this ERC voluntary disclosure program requires submission of Form 15434.

     Click here for more information.

  • Friday, January 05, 2024 9:00 AM | Anonymous member (Administrator)

    [From CATA Approved Partner ACV Auctions] In the automotive retail industry, we can’t know what tomorrow will bring. But we can prepare for it the best we can. Not knowing what turns are ahead for our industry doesn’t put us behind the 8-ball. Instead, it allows us to learn and thrive. Currently, we are nearing the end of Q4 in 2023. Are we where we thought we would be a year ago? Maybe.

    I’m sure some guesses have been long forgotten. Perhaps some strong voices made predictions that stuck. The truth is, however, that we are at a point where we have decisions to make about the future. Automotive retail is robust even in the face of disruptions. The question will remain as to how we can overcome struggles and move from surviving to thriving. To answer this, we need to uncover where value rests in the process for the modern consumer. Everything you do from sourcing, managing, and selling automobiles needs to be done in a proactive manner.

    Start with how you acquire. For many dealerships, what you can’t see can hurt you. This applies to the appraisal process and how you source inventory. If you are operating with blinders on, deploying an inefficient trade-in process, or not breaking free from outdated practices, you are putting yourself at risk.

    What does this mean?

    Simply put, the survival of your lot and business depends on vehicles. Automobiles are the lifeblood of your operations. However, the used car market continues to ebb and flow. This means that the better your stock, the better your ability to provide options to your community. If you couple a strategic approach to consumer acquisition with a data-backed philosophy, you gain insights that tell you not only what and why to stock…but where to get it.

    There are plenty of modern solutions available to help you remedy this situation. It’s up to you to pick one and move beyond a simple sandwich board out in front of your lot.

    But, don’t stop there. Build value into how you manage your inventory with a next-generation system. Never before has there been such a glut of solutions for your dealership. With data as a component, you learn the best cadence for your daily, weekly, and monthly tasks. You’ll get the upper hand on merchandising and marketing, and discover new avenues to connect with consumers and improve the overall experience. This impacts customer satisfaction, retention, and brand loyalty.

    Now, value will never go out of style. As it stands, there are different approaches and styles to how a dealership can sell vehicles to the public. But every shopper is different. Their story, their trade-in, their desire…it produces a unique method for how they want to engage with your dealership, find their automobile, and finally drive it home.

    Never discount how much the brick-and-mortar or digital shopping experience can bring a smile to a consumer’s face. Your dealership needs to offer multiple touchpoints. And each of these touchpoints needs to provide value. Always be giving and thinking outside the box. What would you want if you were purchasing a vehicle for yourself?

    While many consumers will view buying a car as simply a transaction, you need to build further value into the process in order to create repeat business, drive brand awareness, and manage your reputation. Specifically for the importance of your ratings, encourage customers to engage with you on multiple levels through social media or search engines. Google is your friend and brings many options to enhance your brand’s presence online.

    However, not seeing the full picture can hurt you. Much like if you do not take the time to properly assess a vehicle or walk a customer through the appraisal process, ignoring the building or nurturing aspect of the transaction will leave a bad taste in the shopper’s mouth.

    Value is valuable. It’s up to you to break down your operations into a series of spots where you can give more to the customer. Only then will you be able to integrate new technologies that streamline consumer acquisition, maximize inventory management, and bolster your ability to sell more vehicles at a higher gross. Modern consumers are looking for benefits. And modern dealerships are poised to deliver value more than ever before.

  • Friday, December 22, 2023 9:00 AM | Anonymous member (Administrator)

    Just over a month after passing the Chicago Paid Leave and Paid Sick Leave Ordinance (the Ordinance), which brought sweeping new paid leave and paid sick leave requirements to employers with Chicago employees, the city has amended the Ordinance to delay its effective date and limit the number of covered employees.

    The delay to July 1, 2024, impacts the following provisions of the Ordinance:

    • Paid Sick Leave Accrual and Carryover: The new paid sick leave accrual rate of 1 hour for every 35 hours worked will take effect July 1, 2024; the current accrual rate of 1 hour for every 40 hours worked will remain in effect through June 30, 2024. Likewise, the changes to paid sick leave carryover provisions will now take effect July 1, 2024.
    • Paid Leave Accrual: Paid leave accrual will now begin July 1, 2024, and not January 1, 2024, as originally contemplated.
    • Collective Bargaining Agreements in Effect: The Ordinance does not affect the validity or change the terms of a sick leave or PTO policy in a valid collective bargaining agreement (CBA) in effect on July 1, 2024. Following that date, the requirements of the Ordinance may be waived in a bona fide CBA if the waiver is set forth explicitly in the agreement in clear and unambiguous terms.
    • Medium Employer Partial Payout Extended: Under the new Ordinance, certain employers are required to pay the employee the monetary equivalent of all unused accrued paid leave upon an employee’s termination, resignation, retirement, other separation, or transfer outside of the geographic limits of the City, dependent on the employer’s number of covered employees. Medium employers (51-100 covered employees) would have been required to pay out up to 16 hours of paid leave on separation or transfer through December 31, 2024, and all unused paid leave upon separation or transfer on or after January 1, 2025. That date has been postponed by six months until July 1, 2025.

    The December 13th amending ordinance also modified the Ordinance as follows:

    • Definition of a Covered Employee: The amending ordinance defines a covered employee as an individual who works at least 80 hours for an employer within any 120-day period while physically present within the geographic boundaries of the City.
      • Previously, the threshold for coverage was performing at least two hours of work for an employer in any particular two-week period while physically present within the geographic boundaries of the City.
      • The amending ordinance also clarifies that once the 80-hour threshold is reached for coverage, the employee will remain a covered employee for the remainder of the time that the employee works for the employer.
    • Written Policy in Primary Language: The amending ordinance requires employers to provide their written paid time off policy to each of their covered employees in the employee’s primary language.
    • Recordkeeping for Non-Covered Employees: The amending ordinance requires that employers comply with the Ordinance’s recordkeeping requirements for employees whose regular work duties take place within the geographical boundaries of Chicago, even if those individuals do not meet the standard for a “covered employee” under the ordinance and consequently are not entitled to paid leave or paid sick leave.
    • Prerequisites for Paid Leave Private Right of Action: The amendments require that an employee may only initiate a private civil action after both: (a) an alleged violation occurs; and (b) the payday for the next regular payroll period or 16 days after the alleged violation occurred passes, whichever is the shorter period. However, this prerequisite to filing a paid leave private civil action will sunset on July 1, 2026. The prerequisite does not apply to paid sick leave violations.

    Effective December 31, 2023, the amending ordinance also modified the general provisions of Chapter 6-100 of the Chicago Municipal Code as follows:

    • Employers must provide their employment policies to their workers whose regular work duties take place within the geographical boundaries of Chicago. The employment policies must be provided in the primary language of each worker.
    • Employers must provide workers with a 14-day notice of any changes to employment policies.

    With the effective date of the Ordinance delayed until July 1, 2024, Chicago employers now have six more months to prepare for its new requirements. The City of Chicago Office of Labor Standards has published proposed rules on the new Ordinance and is expected to continue issuing informal guidance over the coming months.  In the meantime, the city’s current paid sick leave ordinance remains in effect, so for now that benefit is business as usual for Chicago employers.

    Contact your HR and employment law partner if you have any questions. For assistance, contact us at 423-764-4127 or by email at

  • Friday, December 22, 2023 9:00 AM | Anonymous member (Administrator)

    [From NADA] Following significant advocacy by NADA, on Dec. 20, the U.S. Department of the Treasury renewed the “safe harbor” for Section 45W clean vehicle tax credits for commercial vehicle sales in 2024. Leasing companies will be able to continuing leasing qualifying EVs in 2024 and pass on to consumers up to $7,500 from the tax credit they receive. In addition, other commercial buyers will be able to continue to claim tax credits on their EV purchases.

    Section 45W commercial clean vehicle tax credits are much more flexible than 30D credits and are not subject to restrictive criteria such as where a vehicle’s battery components or minerals are sourced. Accordingly, for leases, the credit is available for virtually any consumer lease of an EV, regardless of adjusted gross income of the lessee. The leasing company simply passes the value of the tax credit to the customer as a savings. 45W is the reason EVs are leased at a much higher rate than other vehicles.
    Section 45W also applies to commercial vehicles above 14,000 GVWR and provides a credit of 30% of the cost basis up to $40,000 (15% for larger plug-in hybrid vehicles). Luckily, nothing. For cars sold in 2023, the IRS created a safe harbor that allowed both (1) lessors of almost all EV leases and (2) most other light-duty commercial EV purchasers to qualify for a $7,500 tax. Fortunately, the government is extending the safe harbor to 2024.
    The 30D tax credit for new vehicles will see changes in 2024 based on new criteria for eligible vehicles. NADA will continue to update its members on developments.

Chicago Automobile Trade Association
18W200 Butterfield Rd.
Oakbrook Terrace, IL 60181 
(630) 495-2282


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