CATA News

Recently signed into law by Gov. Pritzker, SB1896 Amends the Illinois Vehicle Code to provide that an Illinois licensed new or used motor vehicle dealer is authorized to conduct sales activities, including the collection of electronic signatures, via the Internet and deliver vehicles to a customer at the customer's residence or other suitable location, if the sale, lease, or delivery is requested by the customer. It also provides that any documents that state or federal law require to be signed in person may be signed at the time of delivery without constituting an off-site sale that is subject to the permit requirements for off-site sales.

The legislation modernizes Illinois state law, as the current statute was written more than fifty years. The legislation would benefit all automotive dealers in the State of Illinois. Many other states have permitted home vehicle deliveries, as they continue to respond to consumer needs and recognize the immense time and cost savings provided to residents are an increasingly critical element of modern-day life.

Note that this law goes into effect Jan. 1, 2024. The CATA will provide more detailed information in the coming weeks.

This past Saturday, the Chicago Automobile Trade again partnered with the USO Illinois to host the 10th annual USO Barbecue for the Troops fundraisers. More than 80 local new-car dealerships rallied their communities to host fundraising events which featured everything from patriotic ceremonies, classic car shows, live music, games for kids of all ages and, of course, barbecues.

To date, this year’s fundraiser has brought in nearly $50,000 for the USO and online fundraising efforts will continue throughout the summer. Since the program’s inception, CATA dealers have rallied to raise more than $1 million to support USO programs and services with more than 600 fundraisers taking place.

“New-car dealers are pillars of their communities and so it makes a lot of sense for the dealers to rally their neighbors for this grassroots fundraiser, all in support of local troops and their families,” said Kelly Webb Roberts, Chicago Automobile Trade Association chairwoman. “Last summer we achieved a major fundraising milestone and we look forward to adding to that running total with this year’s barbecue.”

“The support of service members’ hometown communities and local new-car dealerships has allowed USO Illinois to positively impact more than 300,000 service members and their families annually through hundreds of programs and services as well as our 10 USO Centers across Illinois,” said Christopher Schmidt, USO Illinois Executive Director. “Neighbors helping neighbors through initiatives like Barbecue for the Troops makes communities even stronger and joining your local dealership for their BBQ in July is a great way to get involved! From the USO Illinois and all those who serve our nation, we thank all of the participating dealers and their communities for the generous support,” Schmidt continued.

For more information on the CATA, visit www.cata.info. For more information on the USO Illinois, please visit https://illinois.uso.org/.

As you’re likely aware, a benefit of your CATA membership is your dealership’s access to Employee Relations and Human Resources counsel to assist you with various types of labor related and employment issues.

The CATA has transitioned to a NEW employee relations consulting service, moving from Littler (David Radelet and Terry Creamer) to SESCO Management Consultants (Jamie Hasty and Team). Contact information and more information on SESCO is found below.

To ease with the transition period, CATA dealers will still have access to Littler through the end of July, ending at close of business on July 31, 2023. We want to acknowledge Littler’s team, especially Dave Radelet, Terry Creamer, Chris Johlie and Mary Dokianos, for their longtime service to our association and dealer members. We greatly appreciate their partnership.

As a reminder, SESCO’s employee relations and human resources counsel service is a member benefit in addition to your access to CATA’s General Counsel (Dennis O’Keefe). Just as it has been with Littler (and previous counsel in the past), your first call/email/text will be complimentary and part of your CATA member benefit. Should the issue escalate to a heightened level, SESCO will advise the dealer up front (disclosing additional costs) or advise them to work with their personal attorney as a next step. The dealer can also choose to hire a SESCO attorney if the issue reaches that next level.

CATA members will now receive the following services through SESCO’s Certified consulting and legal staff:

Click here to download the announcement flyer. Please feel free to contact the CATA at 630-495-2282 (Jennifer Morand, David Sloan or Chris Konecki) or Ryan Kelly, CATA Employee Relations Committee Chairman (rkelly@kellynissan.com), with questions

The Federal Trade Commission recently announced revisions to its “Guides Concerning Use of Endorsements and Testimonials in Advertising,” (“Endorsement Guides”). 

Why it matters?: The revisions include several changes that according to the FTC “merit your attention,” such as:

The FTC has brought a number of enforcement actions in recent years against a variety of companies related to alleged deception in the use of endorsements and customer reviews. This is a fast-moving area that is of increasing focus to the FTC.

Background: The Endorsement Guides provide detailed guidance regarding how an advertiser can (or cannot) use endorsements, testimonials and customer reviews in advertising – including on websites and elsewhere. 

What’s next?: Dealers should review these changes with legal counsel, website providers and advertising professionals to ensure compliance with the FTC guidance regarding the use of endorsements, testimonials or consumer reviews.

Further resources: In addition, the FTC has issued updated Staff Guidance on the Endorsement Guides, with “answer[s to] more than 40 more questions, as well as examples and other guidance.”

Read all about it and much, much more in the CATA's 2023 Q2 Auto Outlook.

Below is a list of 10 key trends and developments in the Chicago Area new vehicle market:

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.