CATA News

[From CATA Approved Partner ACV Auctions] It’s been said that without competition, there is no progress. For automotive retail, this couldn’t be truer. Since the dawn of the automobile, the concept of winning has been built into every transaction we complete. But how do we put ourselves on the path to greatness for EVERY point of interaction in the customer’s journey? It starts with a winning attitude.

Let’s be real for a moment though. It’s officially 2024. Every company, vendor, and dealership already has a playbook for success, a toolkit for achievement, or a roadmap to victory. There are probably other generic business terms that get thrown around as well, but the point is…if you want to succeed, then you're already competitively fighting for progress.

Automotive has always been a mixture of aspiration and inspiration. To get to the next level, we need more than buzzwords. We need practical advice based on data and leveraged by experience. From improving the customer experience to building a better program for training and development, the foundation for prosperity in the automotive industry is tenacity and determination. So, to help you win, here are four attainable cornerstones to build a winning base around.

First, you need to be strategic in how you source inventory. The days of single-point acquisition are gone. You need to diversify your approach to securing valuable vehicles and think outside the box. Competition is fierce in this regard, so the more open you are to new avenues the higher your chances of success. As it stands, physical auctions still have practical applications. But supplementing your brick-and-mortar approach with digital auctions provides you with a slew of new opportunities.

On top of that, wholesaling with a hybrid approach allows you to integrate data into your decision-making. The days of guessing on a car only to have it not perform on your lot are dwindling. Empower your staff to secure inventory that will sell for the highest gross possible every time. Take sourcing a step further and integrate a next-generation widget to your web properties that allows you to best approach consumers for their vehicles. 2024 is the year you need to spread your wings and strategically scoop up the right inventory for your dealership.

Second, an important aspect of success at your used lot is how you attract, market, and acquire business. Bringing traffic to your store is about more than just running ads and hoping for the best. Instead of doing a shotgun blast, build value into your marketing materials and give the consumer what they seek. Provide educational opportunities for customers while focusing on their overall experience. A happy shopper leads to better reviews and a higher rate of referrals.

But traffic isn’t the end all, be all of success in automotive. Having people on your lot or views online doesn’t always translate to sales. So, spend time winning the SEO battle with targeted ads and thoughtful content. Go beyond using social media as a simple vehicle and connect with your community to solve their problems. Get creative with your efforts and provide options for customers who are shopping in a hybrid method. There are a lot of quality solutions available to maximize your efforts including the use of generative AI to supplement your marketing approach and automated ads to build data-rich, high-caliber ads.

However, winning the battle for sales is about offering more during every touchpoint. Whether you are attracting views online or in person, deliver an enhanced customer journey by streamlining the appraisal process with transparency. By being an honest advisor, you gain trust by solving problems for the shopper. Reduce friction and illustrate value. A vehicle is a big purchase. So, treat the trade-in and sales process with the same attention that you would give to friends and family.

Lastly, to increase your overall ability to win in the used automotive market, become a student of the game. Just like your customers are learning more and more about the cars they want to purchase, trim the knowledge gap by empowering your sales team through education. Training and development will never go out of style. When your lot is filled with product experts, they will be better equipped to handle questions on any make or model.

There are tons of resources available for your dealership to win in 2024. Take the time to establish a process that works for your lot and increase your ability to source the best vehicles, manage inventory with precise data, and sell cars at an unprecedented level. Shed light into the four corners of your dealership and build a foundation that will help you be competitive while offering the best customer experience available.

The IRS extended the deadline for submission of 2023 Clean Vehicle Sales Reports until Feb. 15, 2024 (from Jan. 31, 2024) and is only accepting the reports by fax at this time. Dealers who have already submitted their 2023 Clean Vehicle Sales reports do not need to resubmit them.

The reports are required for 2023 sales that qualify for either the Section 25E previously owned clean vehicle credit or the new clean vehicle credit under Section 30D. 

Dealers who have not yet filed their reports must now fax them directly to 855.755.7437 until further notice. 

NADA anticipates that the IRS may provide more information relating to 2023 Clean Vehicle Sales Reports soon and will provide additional updates as warranted. Dealers may find the most recent information provided by the IRS on the IRS Clean Vehicle Credit Seller or Dealer Requirements webpage.

The 2024 Chicago Auto Show opens the doors for its 116th edition in just under a month, Feb. 10-19. The show generates interest and excitement in the latest cars, trucks and SUVs as well as kickstarts spring selling season at dealerships across the Chicagoland area. Below is information to help you and your dealership make the most of the show this winter.

Thank you for your help in extending the message of the auto show to your customers. We look forward to seeing you at McCormick Place next month!

Attend the Social Media Preview - Feb. 9 – Click Here to Register

The CATA exclusively invites you to attend the Chicago Auto Show's Social Media Preview on Friday, Feb. 9 (9 a.m. – 2 p.m.). This is a great opportunity to gather content for your brand(s) – especially geared towards a social media audience – while seeing the latest from the auto industry before the public show opens the following day.

Dealer Marketing Materials – Download Marketing Assets

We have assembled the 2024 Chicago Auto Show and First Look for Charity digital marketing assets into an easily accessible kit for your team to use on:

Please tag @thechicagoautoshow on Instagram, The Chicago Auto Show on Facebook and @ChiAutoShow on X (Twitter) when you post.

Please contact Hayley Feichter (wrong email hyperlink) for any questions regarding this marketing kit.

Dealer Tickets – Buy Your Tickets

2024 CATA Member Kits are on their way to you! In the member kit you will receive 60 employee appreciation tickets and 200 weekday discount coupons. Should you want to purchase Chicago Auto Show tickets at the discounted member rate, you can do so using this form. Please email the completed form to Donna Young.

First Look for Charity - Feb. 9 – Buy First Look for Charity Tickets

This year marks the 32nd year of First Look for Charity. Produced by the Chicagoland new-car dealers, the black-tie gala raises funds to support 18 local charities while offering attendees a top-notch experience to see the latest vehicles, enjoy live music entertainment and taste gourmet food and beverages from a variety of Chicago’s top restaurants and McCormick Place Chicago’s premier caterer, OVG 360. Since the event’s inception, First Look for Charity has raised $60 million for wonderful location organizations who need it most.

We invite you to join us on the showfloor for this elegant evening.

NADA announced, in response to the petition for judicial review sought by NADA and the Texas Automobile Dealers Association (TADA), the Federal Trade Commission (FTC) has issued an Order postponing the effective date of the Vehicle Shopping Rule pending judicial review of the petition. The FTC’s order notes that “it is in the interests of justice to stay the effective date of the rule to allow for judicial review.”

What it means: While this action does not revoke or otherwise affect the rule’s requirements, it does mean that the previously announced effective date of July 30, 2024, is no longer the effective date for the Vehicle Shopping Rule. 

The background: On Jan. 4, 2024, NADA and TADA filed a Petition for Review of the Vehicle Shopping Rule in the United States Court of Appeals for the Fifth Circuit, challenging the rule on the basis that it is “arbitrary, capricious, an abuse of discretion, without observance of procedure required by law, or otherwise not in accordance with law.” And on Jan. 8, 2024, NADA and TADA filed a motion with the Fifth Circuit seeking a stay of the rule and expedited consideration of the Petition for Review. 

Also… NADA is continuing to support federal legislation to prevent the implementation and enforcement of the rule, including a provision in a House appropriations bill that would deny funding for enforcing the rule and the “FTC REDO Act” (S. 3014), which requires the FTC to follow basic regulatory safeguards should the agency choose to redo the rule.

What’s next: Dealers are encouraged to continue to review NADA compliance materials and take steps to understand and be prepared for the rule. NADA will continue to update dealers as we learn more about timing related to compliance with the rule.

Go deeper: A simple one-page guide provides key messaging about the rule.

Poor weather conditions can often raise pay-related questions for employers.

The issue is straightforward for non-exempt employees (i.e. employees subject to overtime pay). Non-exempt employees are paid for the actual time worked. Thus, if they do not report for work or the employer is closed, they are not paid for the day. An employer may choose to allow these employees to use vacation or other paid time off to cover the lost wages.

The issue is a little more complicated for exempt employees (i.e. employees not subject to overtime pay). Exempt employees must be paid if they are ready, willing, and, able to work; this is so even if the employer closes for the day. An employer that remains open during a weather emergency may lawfully deduct one full-day’s absence from the salary of an exempt employee who does not report for work for the day due to adverse weather conditions. The Department of Labor considers this an absence due to personal reasons; therefore, a deduction of a full-day’s pay will not violate the salary basis rule or otherwise affect the employee’s exempt status. An employer may, as an option, require an exempt employee who fails to report for work in this situation take vacation or other paid leave to cover the full-day’s absence. Deductions from an exempt employee's salary for less than a full-day’s absence are not permitted.

SESCO recommends that clients review all applicable policy and practices to ensure compliance. For assistance, contact us at 423-764-4127 or by email at sesco@sescomgt.com.

Rev. Proc. 2022-42, Section 6.03 provides that sellers must file reports within fifteen days after the end of the calendar year (i.e., January 15, 2024).  The IRS is extending the due date sellers have to provide these reports until January 31, 2024.  As a result, for vehicles placed in service in calendar year 2023, you must submit required information about a qualifying clean vehicle sale to the IRS by January 31, 2024.

Report information to buyers

For vehicles placed in service in 2024 or later, providing buyers a copy of the seller report submitted to IRS Energy Credits Online and the confirmation that the IRS accepted the submission meets your reporting obligation.

For vehicles placed in service in 2023, you needed to provide the following information to buyers at the time of sale:

Each report must include a declaration of accuracy signed by a representative of your business with binding authority. The declaration must read: "Under penalties of perjury, I declare that I have examined this report submitted to the IRS pursuant to Revenue Procedure 2022-42 by [insert name of Seller], and to the best of my knowledge and belief I certify that this report is true, correct, and complete.”

Find more details in Revenue Procedure 2022-42 and Revenue Procedure 2023-33.

[From CATA Approved Partner Dynatron] Dealers should have received an email from chairman@nadasurvey.com with instructions on how to complete the Dealer Attitude Survey, which is open until Thursday, Feb. 8., 2024. This deadline allows for the dealers and general managers attending the NADA Show in Las Vegas to complete the survey after attending their franchise meeting. The survey results provide auto manufacturers with a timely and comprehensive understanding of franchised dealer sentiment and facilitates constructive and beneficial discussions between OEMS and their dealers. Visit nadasurvey.com for questions or assistance.

General Managers (GMs) are indispensable figures whose responsibilities extend beyond the sales floor, encompassing the Fixed Ops department. At Dynatron Software, we understand that many GMs, often armed with robust sales backgrounds, may lack extensive experience in Fixed Ops. Our mission is to bridge this gap, empowering GMs to actively contribute to the profitability of the Fixed Ops department through strategic engagement and targeted initiatives.

Here are 4 key areas for General Managers to successfully navigate the road to Fixed Ops mastery!

1. Strategic Engagement: Unveiling the Power of GM Involvement in Fixed Ops

GMs who are immersed in Fixed Ops foster a culture of understanding, collaboration, and continuous improvement.

2. Transforming Service into Sales: A 3 Pillar Approach for Revenue Growth

Service is SALES! A General Manager with a strong background in sales should be partnering with their Service Managers to drive top-tier performance.

3. Efficient Reporting for Informed Decision-Making: The Power of Data

Establishing a learning environment is crucial. GMs must have streamlined reporting tools to provide accurate snapshots of organizational goals.

4. Cracking the Code on Technician Time: Unleashing Operational Efficiency

Insight into Technician time empowers GMs to enhance overall efficiency, contributing to profitability and customer satisfaction.

Together with Dynatron Software, GMs can confidently steer their organizations toward success in the intricate world of Fixed Ops. Check out our full article here.

Are you going to NADA in Las Vegas? We’d love to meet with you, we will be at booth 7051N! We know the weekend can get busy, so we encourage you to schedule some time to meet with us ahead of time using this link. Just for meeting with us, you’ll receive a golden ticket wristband to attend our VIP Pre-Party at The Pepper Club on Saturday, February 3rd at 4:30pm. You’ll enjoy a top-shelf open bar, award-winning food, and the chance to network with industry professionals. Secure your invitation before the guest list fills up!

[From the NADA] For Buick dealers who have opted to accept buyouts offered by GM to voluntarily terminate their Buick franchise agreements, experienced CPA Jay Goldman, who serves as chair of Boyer & Ritter LLC’s Dealership group, has identified some important tax issues related to the buyout compensation paid by GM for consideration.

What You Need to Know

Please see example below: 

If the Buick franchise was purchased with other franchises simultaneously and the entity continues to own them, the Buick goodwill would continue to be amortized with the other franchises and the entire amount of the proceeds would be considered capital gain.

Please see example below:

The information provided here is for informational purposes only and does not constitute legal or tax advice. Affected Buick dealers should consult their attorney, CPA or other professional advisor familiar with the applicable laws to obtain specific advice regarding these matters to ensure proper tax reporting for their specific transactions.

Jay Goldman works in Boyer & Ritter LLC’s office in Camp Hill, Pennsylvania and may be reached at 717.761.7210 or jgoldman@cpabr.com.

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.