CATA News

Automotive News is seeking young standouts making an impact at dealerships nationwide. For the 13th consecutive year, Automotive News will feature honorees in a special section on July 10. If you are under 40 and making things happen at a dealership, or if you know someone who is, we want to hear about them!

Deadline: March 15, 2024. Nominees must be born after July 8, 1984. Only one nomination is needed for each nominee.

Click HERE to nominate someone today!

The 2024 Chicago Auto Show is officially opened to the public on Feb. 10 and continues to run through Monday, Feb. 19, Presidents Day, at McCormick Place.

“We are excited to once again open the doors on another fun-filled show,” said Chicago Auto Show Chairman JC Phelan. “The Chicago Auto Show is a winter tradition for so many and we look forward to welcoming hundreds of thousands of auto enthusiasts and families alike to McCormick Place over the next 10 days.”

The 2024 show features many interactive elements and engaging activations, including three indoor test tracks and three outdoor ride-and-drives.

Indoors, attendees can take a ride on the expanded Chicago Drives Electric EV Track, featuring latest EVs from BMW, Cadillac, Chevrolet, Ford, Kia, Lucid, Nissan, Tesla and Volkswagen. Ford presents “Built Wild” showcasing the capability of Ford’s Bronco family of vehicles. At the Hyundai track, attendees can experience the Kona Electric, IONIQ 5 and IONIQ 6 first-hand, which participants will be driven by a professional driver around the course highlighting the vehicle’s awarding winning features.

In addition to the indoor test tracks, manufacturers will offer plenty of opportunities for fans to jump behind the wheel and take a test drive outdoors on city streets. Participating brands include Ford, Kia and Subaru.

Tonight, the final Friday of the show, Friday Night Flights – a local craft beer sampling event inside the show – will take place from 5-8 p.m. Tickets can be purchased online or onsite at the box office.

The final day of the show, Feb. 19, is Family Day hosted by the Daily Herald. The day will feature fun-filled activities for children and families. Visit the website for more information.

Do you struggle with retaining and attracting the best technicians? Like it or not, you are competing with other dealerships and aftermarket shops for the same talent.  But just like a sports team, what if you had the highest payroll, with no luxury cap, AND it didn’t hit your bottom line? Would you be able to hit it out of the park?

Dynatron Software can show you how we have made this possible for automotive dealerships across the country. Check out our latest BLOG for more information.

Joseph Alfirevich, 90, of Homer Glen, was born on January 5, 1934, and passed away peacefully on February 10, at the age of 90. Affectionately known throughout his life as “Alfee,” he was the long-time owner of Apple Chevrolet in Tinley Park.

As Alfee's dealership business grew, so did his responsibilities to the auto industry he loved. He served on the board of directors for the Chicagoland and NW Indiana Chevrolet Dealers Association from 1985 to 1998 where he was also elected vice president of the group’s advertising association (LMA). Additionally, he was a board member of the Illinois Automobile Dealers Association (IADA) from 1989 to 2013, serving as the organization’s Chairman in 1997.

Joe’s son, John (also affectionately known as “Alfee”), has taken over as owner of Apple Chevrolet and continues his father’s legacy. John Alfee was a former CATA Board Member and follows in his father’s footsteps as current IADA Chairman.

Read Joe’s full obituary HERE.

[Source: Crain’s Chicago Business} A decade ago, social and digital media were considered serious threats to the [Chicago Auto] show’s future. With a new generation of consumers negotiating to buy cars online and not visiting traditional retailers at all, why visit a trade show? But crowds were up by nearly 100,000 last year and are expected to be up close to another 100,000 this year. Social media has only expanded the show’s reach.

Click HERE to read the full article (reposted to the Chicago Auto Show Blog

In preparation for the Chicago Auto Show, the offices of the Chicago Automobile Trade Association will close on Feb. 1. The office will reopen Feb. 20. During that time, no dealer forms will be shipped. However, office staff will be available for questions via CATA’s phone number, 630-495-2282. All staff extension numbers will be functional as well.

A new Illinois data privacy law specifically tailored to motor vehicle-secured financing transactions became effective on January 1, 2024. The law, Senate Bill 800, amends the Illinois Collateral Recovery Act and requires licensed repossession agencies to clear, erase, delete, or otherwise eliminate personal information collected or stored in a vehicle after repossession.

The law defines "personal information" as information that is associated with an owner, driver, or passenger of the collateral and that is collected and stored by electronic means in or by the collateral (this appears to include information saved to the cloud that is accessible-and erasable-from the vehicle) during the course of use of that collateral. The law specifically refers to several examples of covered personal information, including, but not limited to:

The law also expressly covers information that is deemed "sensitive personal information" by the Federal Trade Commission, "personally identifiable information" under federal Illinois law, and "individually identifiable health information" under the Health Insurance Portability and Accountability Act. To ensure that the Jaw covers all bases, the Illinois legislature added a broad catch-all to cover "information that a licensed repossession agency reasonably believes would be deemed confidential or private by the person who is associated with the information."

A repossession agency that has cause to believe that a repossessed vehicle collects personal information must delete or otherwise clear this information from the repossessed vehicle as soon as practicable upon repossession of the vehicle and prior to release of the vehicle. (As an aside, the law does not make an exception to the requirement to delete information when the vehicle is released back to the consumer, perhaps upon reinstatement). The repossession agency must use a standardized electronic solution approved by the American Recovery Association to delete covered information.

Reps. Kelly Armstrong (R-N.D.) recently introduced the “FTC REDO Act” (H.R. 7101) in the U.S. House of Representatives. The bill would nullify the Federal Trade Commission’s (FTC) Vehicle Shopping Rule and require the agency to follow basic regulatory safeguards it failed to follow should the agency choose to redo the rule. A companion bill (S. 3014) was introduced in the Senate by Sens. Jerry Moran (R-Kan.) and Joe Manchin (D-W.V.) last October.

The is also NADA supporting a provision in a House appropriations bill (H.R. 4664) that would deny funding to the FTC to implement or enforce the rule this fiscal year. This bill could be considered in the next few weeks. Concurrently, the NADA and the Texas Automobile Dealers Association are challenging the rule in court. On Jan. 18, the FTC issued an order stating that “it is in the interests of justice to stay the effective date of the [Vehicle Shopping] Rule to allow for judicial review.” While the FTC’s retreat is welcome news for dealers and their customers, the Vehicle Shopping Rule remains the law.

What’s next: Dealers should urge their representatives in Congress to cosponsor the “FTC REDO Act” to stop the Vehicle Shopping Rule, which will add massive amounts of time, complexity, paperwork and costs to the car buying process.

Area unemployment rate was near 4% at the end of 2023, total employment increased, and household incomes have moved higher, all positive factors for the new vehicle market.

Rising interest rates and tight vehicle supplies resulting in higher prices put a squeeze on affordability in 2022 and the first half of last year, but the pendulum is swinging back. Interest rates are predicted to ease this year, transaction prices are drifting lower, and income growth has been positive.

Pent up demand is the biggest positive for the area market. Auto Outlook estimates that nearly 140,000 new vehicle purchases have been postponed since the onset of the pandemic and ensuing supply chain issues.

Find out more the latest edition of Chicago Auto Outlook: Chicago Auto Outlook - Q4 2023.

The Better Business Bureau has become aware of certain price advertising where EV tax credits are included in the amounts of the advertised prices.

The Illinois Motor Vehicle Advertising Regulations address this issue in Rule 475.310 which states that purchasers “shall be able to purchase all vehicles described by the advertisement at the advertised price.”  Usually, the application of this rule involves the inclusion of limited rebates in prices. 

Separately, Rule 475.530 promotes the same principle by requiring that only rebates that are available to all consumers may be included in advertised prices. Limited rebates available only to qualified consumers may not be included. 

An EV tax credit is not a rebate.  The source of the tax credit is the government not the vehicle manufacturer.  However, a tax credit is an amount of money that is available only to certain consumers who qualify for it, analogous to the way limited rebates work. 

This year there are new standards impacting how EV tax credits are applied to vehicles.

First, the advertised vehicle must be one that qualifies for the tax credit by being assembled in America and having an MSRP of $55,000 or less for cars and $80,000 or less for SUVs and trucks.

Second, the battery in the vehicle must qualify in two ways: the raw materials must be mined in the US, or a trade partner and a percentage of the components must be manufactured or assembled in the US.

The BBB does not intend to delve into vehicle qualifications as it looks at EV credit issues, but these are important to understand for all.  

The BBB focus is how the inclusion of EV tax credits in prices affects consumers and the competitive marketplace for dealers.

In 2024 the full amount of the $7500 EV tax credit is available to certain consumers who:

Only a limited group of consumers who meet all three of these criteria are eligible for the $7500 EV tax credit.  Therefore, dealers who include the EV tax credit in prices run afoul of Rule 475.310 since consumers who do not meet these requirements cannot purchase advertised vehicles at the advertised prices. 

Leased vehicles are also subject to the EV tax credit for a larger pool of qualifying vehicles.  Consumers must meet the requirements when they lease.  Therefore, dealers must refrain from including the EV tax credit in advertised lease offers as well because, while consumers may qualify for a lease they may not qualify for the tax credit.  

The EV tax credit is available to qualifying consumers in the sale of used EVs with a maximum price of $25,000 by IRS registered dealers.  The amount of the tax credit is 30% of the sale price up to $4000.  Consumers with a modified adjusted gross income of $150,000 a household or $75,000 an individual qualify.  Rule 475.310 applies here as well.  Dealers may not include EV tax credit in advertised prices because the prices are not available to all consumers, only to those who qualify for the EV tax credit.

While the area of EV tax credits can be complicated as to qualifications for vehicles and for consumers, who must determine what their modified adjusted gross income is, the idea of including these tax credits in advertised prices is very simple.  Doing so excludes consumers who do not qualify and, therefore, impacts Rule 475.310.

The BBB will be watchful in this area to ensure that dealers have a level playing field and avoid advertising in a way that negatively affects fairness in the marketplace.