CATA News

In the highly competitive automotive industry, pricing plays a pivotal role in shaping customer perceptions and driving business success. Yet, many General Managers (GMs) harbor a series of misconceptions that could be hindering their Fixed Ops profitability.

• Misconception 1: Dealerships have Higher Prices than Aftermarket Shops
• Misconception 2: Lowering Prices will Attract more Business
• Misconception 3: The Service Department Should make all the Pricing Adjustments

Each misconception is dispelled in Dynatron’s latest blog you can check out here.

Understanding these misconceptions is crucial for GMs to optimize Fixed Ops profitability, enhance customer retention, and ultimately succeed in a rapidly evolving market. By debunking these misconceptions, GMs can make informed decisions that benefit both their dealership and their valued customers, ensuring long-term success!

On October 26, Automotive News is hosting its annual Retail Forum conference at the Four Seasons in Chicago. Top automotive retail leaders will come together to discuss some of the biggest issues facing dealerships, including affordability, consolidation, artificial intelligence, and EV supply/demand.

Automotive News is offering all CATA members a special 33% discount on tickets to the conference. To learn more about the event and register, visit http://autonews.com/retailforum and use the code CATA-FF at checkout.

The Department of the Treasury and IRS have announced that, starting Jan. 1, 2024, buyers of eligible plug-in hybrids and electric vehicles can receive their federal tax credit at purchase. Under the existing rules, those buyers had to wait until filing taxes for the year in which they purchased the car.

Under the new guidelines, dealerships must first register with the IRS. Shoppers purchasing a vehicle from a registered dealer will then be able to transfer the tax credit to the dealer, thereby directly lowering the initial purchase price. The IRS expects to issue the payment to the dealer within 72 hours of the sale.

Buyers will not be required to transfer their credit to the dealer. If they choose not to, the process of claiming the tax credit will remain the same as it is under the existing protocols. The Treasury Department also noted that payments issued to dealers will not be treated as a tax credit to the dealers and therefore will not affect their tax liability. The payment from the dealer to the consumer also will not be counted as income for the consumer, so their tax liability will not be affected, either. However, if the buyer takes the credits and their income exceeds the federal tax credit’s thresholds for both the year of purchase and the year prior, they will need to repay the credits come next tax season.

The updated guidelines affect only the timing of the payment to purchasers; other aspects of the Inflation Reduction Act EV tax credit remain unchanged. The credit for new EVs maxes out at $7,500, and buyers of used vehicles can claim up to $4,000.

The exact amount of the credit is based on where the vehicle and its battery pack are assembled and where critical materials for the battery are sourced. The credits are only available on new cars with a sticker price of less than $55,000 and trucks or SUVs with a sticker below $80,000; used EVs can’t have a sale price of more than $25,000. Income limits of $150,000 for single filers, $300,000 for those filing taxes jointly and $225,000 for the head of a household also remain in place.

The IRS expects to reimburse dealers who transfer advance payments for clean vehicle tax credits “on the hood” within 72 hours of submission via electronic payment. Additionally, Treasury said that consumers – as opposed to dealers – will be responsible for attesting to their income for the purpose of determining eligibility for clean vehicle tax credits. This information should allay the biggest dealer concerns with their role in facilitating advanced clean vehicle tax credits to consumers at the point of sale starting in January 2024.

The information regarding the EV tax credit advance payments was part of an announcement from the Treasury Department which is available here. The announcement contained other information regarding the implementation of the EV tax credits; for instance, details about how dealers will register with the IRS via the portal. As a result of this guidance, the IRS updated the frequently-asked-questions (FAQs) for the clean vehicle credits.

Junior Achievement (JA) is a non-profit dedicated to helping students Kindergarten through college be better prepared for their futures by helping them achieve success in financial literacy, work readiness, and entrepreneurship. Through hands-on engagement with business and community volunteers, JA brings real-world experiences into the classroom and introduces students into what they can expect culturally and functionally in the workplace.  

JA is currently looking for volunteers in the automotive field for our its Career Speaker Series. In JA Career Speakers Series, a volunteer guest speaker visits the classroom and shares information about his or her career, work, and education experience. The speaker may bring props, samples of his or her work, or other visuals to help engage students. Activities and implementation design will vary based on grade level. You will have an opportunity to share information about pivot points in your life and how you handled roadblocks you encountered. When asked,100% of teachers responded that the JA curriculum exposes students to new career possibilities, and you can be a part of that introduction.  JA needs your voice at the events below.  If you are able to participate, please contact janderson@jachicago.org and Jennifer Anderson will provide all the details you need to highlight careers in the automotive industry.

• Wed., Oct. 18, 2023 - Clifford Pierce Middle School, Merrillville
• Wed., Nov. 29, 2023 - Yorkville High School      
• Fri., Mar. 22, 2024 - Helen C. Peirce Elementary School, Chicago

Apple Chevrolet was named as one of General Motors Dealers of the Year

The CATA successfully concluded its second annual fall Chicago Drives Electric experiential test drive and educational event last week. In alignment with National Drive Electric week, Chicago Drives Electric aimed to raise awareness of the many benefits of all-electric, hybrid and plug-in hybrid vehicles and help consumers understand how electric vehicles (EVs) can fit individual needs and lifestyles. Featured brands available for test drives included: Audi, Cadillac, Chrysler, Ford, Hyundai, Jeep, Kia, Nissan, Toyota, Volkswagen and Volvo.

In addition to putting interested parties behind the wheel of a wide array of the latest EVs, event organizers brought in a variety of experts to help break down the various aspects of EV ownership and tackle complex topics such as range anxiety; at-home charging solutions; on-the-go charging and infrastructure; tax credits and incentives; and where people can begin their search. On-hand experts included Cars.com, ComEd, Drive Chicago and Powering Chicago.

Between test drives, attendees enjoyed freshly grilled tailgate food courtesy of Chicago-based grill company, Weber, who demonstrated its Lumin all-electric grill and was powered by two different EVs, a Ford F-150 Lightning and a Kia EV6.

Over the course of the weekend, the event attracted 1,437 total registered drivers and netted more than 5,800 in-vehicle experiences, doubling the attendance from the previous year. The buzz generated from the event carried over to social media; Chicago Drives Electric reached more than 4.6 million, according to initial results from media measurement firm Meltwater.

“We are thrilled to see this event grow and involve more brands for consumers to test drive and experience,” said CATA Chairwoman Kelly Webb Roberts. “It’s clear, based on sold out registrations, that interest in EVs is still prominent among today’s new-car buyers. In fact, nearly 50 percent of Chicago Drives Electric attendees indicated that they are likely to consider purchasing an EV.”

“There’s no other event quite like Chicago Drives Electric where people were able to test drive a wide range of EVs back-to-back, speak directly with product specialists about the vehicles and meet with experts who addressed questions about EV ownership and charging – all in one place,” Webb Roberts continued. 

“We’re planning to bring back the large Chicago Drives Electric indoor test track and EV education hub to the 2024 Chicago Auto Show,” said Chicago Auto Show Co-General Manager Jennifer Morand. “Last year’s test track featured models from five different brands. We look forward to continuing that experience at the 2024 show.”

Martin Lavelle, Senior Business Economist at the Federal Reserve Bank of Chicago is requesting that you fill out a short survey (nine questions) in order to help him and the Federal Reserve Bank of Chicago better understand current business and economic conditions, especially with the threat of a government shutdown and the ongoing UAW strike.  The information received will be kept anonymous and will be added to other economic intelligence collected by the Federal Reserve Bank of Chicago.  The summary of economic intelligence collected by the Federal Bank of Chicago will be published in the next edition of the Federal Reserve’s Beige Book on October 18th.  The Federal Reserve Beige Book is the Fed’s current update on economic conditions that’s published 2 weeks before each Federal Open Market Committee Meeting (FOMC).  If you have any additional questions or concerns, please contact Martin Lavelle at mailto:martin.lavelle@chi.frb.org.

 Thank you for your willingness to participate, it’s greatly appreciated. Click here to take the survey!

With recently enacted federal employee protection regulations, proposed changes to the federal wage payment laws, updates to the I-9 and E-Verify processes, it is vital that individuals, especially human resources professionals understand the impact these regulatory changes will have on your organization.

 SESCO will be conducting a webinar on October 10, 2023, titled 2023 Human Resources Regulatory Update, from 2:00 pm to 3:45 pm EST. The cost will be $60.00 per registrant. Click here to register!

The Governor signed legislation that will clarify the process for remote deliveries of motor vehicles. Public Act 102-392 provides that a dealer may obtain electronic signatures via the internet from a purchaser and deliver a vehicle at a location the purchaser requests in writing, provided that the dealership verifies the customer’s identity at the time of delivery. 

The legislation provides that if a customer signs documents that still require a wet ink signature by law at the time and place of delivery, the sale will be considered to have been completed at the dealership location. P.A. 102-392 also clarifies that the date on which the application for title is signed by the purchaser is the date of sale for a vehicle that is delivered to a purchaser at a location other than the dealer’s established place of business. Finally, P.A. 102-392 authorizes the Secretary of State to adopt administrative rules regulating vehicle deliveries, which is the first step toward permitting e-signatures on title applications and secure power of attorney forms. Public Act 102-392 takes effect January 1, 2024.

Processing Expedited Title Transactions? Wondering if they can be done? Or maybe one was submitted and then turned over to regular processing and you aren't sure why? 

The Illinois SOS (Secretary of State) provides a list of transaction types that cannot be requested for Expedited Processing. If the transaction with title and corresponding paperwork falls into any of the categories listed below, the title cannot be requested for Expedited Processing.