CATA News

Following last year’s success and the great outcome at the 2023 Chicago Auto Show, planning is underway for the 2023 Chicago Drives Electric event. The four-day event will once again be held at the CATA’s headquarters, kicking off with a Media/Dealer Day on Sept. 28 that is designed to generate awareness for the latest EVs as well as provide education surrounding the EV space. Then, on Friday, Sept. 29 through Sunday, Oct. 1, the CATA will welcome thousands of consumers to test drive and learn about the latest EVs.

In the afternoon session on Sept. 28, the CATA will welcome CATA to partake in a series of EV educational sessions geared towards their businesses and provide consumer insights and buying patterns from experts in the space. A full agenda and registration link is forthcoming, but please save the date (the afternoon of Thursday, Sept. 28 at the CATA building).

Mayor Brandon Johnson’s transition team released its transition report titled “A Blueprint for Creating a More Just and Vibrant City for All.” The report is the work of nearly 400 members who served on 11 subcommittees which were tasked with recommending policy proposals for the new administration. Read the full report here.

When we think about what makes a highly successful Service Advisor, there are several habits our Dynatron Coaches have seen demonstrated over and over again.

Here are 8 habits of the most successful Service Advisors:

If your Service advisors are demonstrating these 8 habits consistently, they will be more successful in building customer trust, one customer at a time. Check out the latest blog on the Dynatron website to learn more about each habit.

Dynatron Software has the data analytics and Coaching your dealership needs to be able to turn goals into action plans, and action plans into results.

[Automotive News] The number of applicants getting turned down for credit reached its highest level in five years, according to a recent Federal Reserve study. The rejection rate for loan applications is at 21.8 percent for the past 12 months including June; for automotive loans it was 14.2 percent — a new high — up from 9.1 percent in February.

Rising interest rates and cautious lenders concerned about delinquencies are two potential factors for the steep rejection rates for Americans applying for credit. The increase is across all age groups and is highest among those with credit scores below 680.

The high rejection rate for auto loans is a challenge for prospective buyers, and in turn, dealerships. "Some lenders have become much more cautious in their underwriting practices," said Sam D'Arc, COO of Zeigler Auto Group. But being rejected may not come as a surprise for some borrowers. That's because an applicant's expectation that their loan would be rejected is also at an all-time high. Almost one-third of hopeful borrowers expected to be turned down for an auto loan.

According to a Federal Reserve quarterly survey of bank senior loan officers, 39 percent of banks polled in April expected to toughen lending at some point between the survey date and the end of the year. Also, 29 percent of banks had tightened their auto loan standards in the three months before the April survey.

Overall, credit applications declined to the lowest level since October 2020. The average reported probability a loan application is rejected rose for all loan types. The probability grew to 30.7 percent for auto loans, 32.8 percent for credit cards, 42.4 percent for credit limit increase requests, 46.1 percent for mortgages and 29.6 percent for mortgage refinance applications. The results for auto loans, mortgages and credit card limit increase requests are new highs.

As of July 1, minimum wage for businesses in Chicago with 21 or more employees become $15.80 an hour. For smaller businesses with 4 to 20 employees, the rate is $15.

Large companies with tipped employees must pay at least $9.48 per hour, and tipped employees at smaller businesses receive at least $9 an hour.

Cook County had a similar minimum wage increase July 1. The minimum wage for businesses inside Cook County but outside of Chicago increased to $13.70 an hour for non-tipped workers and $8 an hour for workers who earn tips.

The county says the ordinance applies to hourly, salaried, and tipped employees over the age of 18, working in Cook County, even those who may be working within Cook County to make deliveries or driving within the County limits.

The minimum wage in greater Illinois is $13 an hour for workers 18 and older.

The CATA is excited to introduce a brand-new logo. Approved by the CATA Executive Committee last week, the freshened CATA logo reflects a modernized look and is symbolic of the association in the following ways:

The design was executed by Chicago Auto Show graphics partner MADMAXMAR, a local strategic marketing company. MADMAXMAR has worked with the Chicago Auto Show in creating the official poster and digital, print and outdoor marketing for five years.

“It has been decades since the last CATA logo was created, and it was time for a change,” said Chicago Automobile Trade Association Co-President Jennifer Morand. “The new CATA logo is symbolic of the many elements that make up the fabric of this wonderful organization. The entire process was grounded in strategy, and we’re thankful to our partners at MADMAXMAR for helping our vision become a reality.”  

Over the next few weeks, the CATA will distribute brand guidelines and standards for its logo usage. Dealers and Allied Members may continue to use the former CATA logo on items currently printed.

In addition, the CATA will roll out freshened logos for its other entities such as the Chicago Auto Show, First Look for Charity, Chicago Drives Electric and DriveChicago.com. 

VISA has revised and implemented new rules around “processing fees” that may be applied to credit-card transactions. Dealers who do not follow these new rules are subject to dismissal by VISA (and other credit-card companies). The basics of the new rules are the following:

These rules, as well as applicable signage, should have been provided to dealerships by their credit card processing partners. The NADA is hosting an informational webinar titled, The Truth about Credit Card Surcharging and CSL on Wednesday, July 12. Click here for more information.

On June 24, the CATA received information from authorities that auto dealers may again be targeted for mass vehicle thefts. Online chatter from a group that has targeted dealerships in the past had recently increased and it is possible that this group may be mobilizing to steal vehicles from dealers in the immediate future.

Indeed, on June 26, a CATA dealer was the victim of an attempted theft. A southwest suburban dealer thwarted a theft attempt was made at their dealership today around the lunch hour. The male suspect was fully covered (hood, mask and gloves). He was driving a blue Dodge Charger with the following dealer plate number: DL 2181 O. Please continue to be vigilant and take proper precautions to secure the vehicles on your lot.

With auto theft again on the rise, discouraging thieves from entering your dealership site in the first place is the best way to protect your cars.  CATA partnered with Trydon over a year ago when it first saw how ChaseLight reacts to afterhours trespassers and encourages you to consider incorporating their programmable lighting controllers on your outdoor light poles. Click here to see ChaseLight in action and review the attachment for more information and how to contact Trydon.  

New Vehicle Sales Rise on Strong Demand, Better Supply

New vehicle sales in the United States for top global automakers rose in the second quarter on improving supply and strong demand, signaling that rising interest rates have not yet had a meaningful impact on purchases. Vehicle production took a hit after the pandemic disrupted supply of semiconductor chips and other raw materials, hurting automakers' ability to meet the upsurge for personal transport.

For more information, click here. (NADA)

House Subcommittee Votes to Defund FTC’s “Vehicle Shopping Rule”

In late June, a House appropriations subcommittee included language in a broad spending bill that would stop the Federal Trade Commission (FTC) from finalizing, implementing, or enforcing the Motor Vehicle Dealers Trade Regulation Rule (“Vehicle Shopping Rule”). This language is an essential first step for Congress to use its oversight authority and “power of the purse” to protect consumers and dealers from a flawed proposed rule that would needlessly impose unnecessary burdens and costs.

The NADA-backed provision was included in the House Financial Services and General Government (FSGG) Appropriations bill, and the next step is full House Appropriations Committee consideration. Preserving this appropriations language through the House and Senate appropriations process will be a top NADA legislative priority.

NADA, AIADA and NAMAD sent a letter of support to the FSGG Subcommittee highlighting the flaws of the proposed “Vehicle Shopping Rule” and cited the recent Center for Automotive Research study, which states that the FTC’s rule would cost consumers $38 billion.

NADA Legislative staff thanks the dealers and ATAEs who helped gain the critical support of appropriations subcommittee members. We anticipate the FTC appropriations bill will be a key issue during the upcoming Washington Conference, scheduled for September 12-13.

Can You Record Customers?

Questions about the legal implications of recording customers and employees raise complicated, but increasingly relevant issues that are driven largely by state law and practical considerations rather than by federal law.

Read the full NADA article here.