A new report shows new car shoppers are more likely to purchase an electric vehicle (EV) from a traditional, legacy automaker than from an upstart EV specialist manufacturer—including Tesla.
More than one-third (35%) of the survey’s respondents favor purchasing from a well-established automaker, while just fewer than one-quarter (24%) indicate they’d likely look to an EV start-up to purchase their first electric vehicle. A further 41% of the study’s participants are undecided, highlighting the stakes at play for familiar brands and start-ups seeking to capitalize on rising waves of EV interest among consumers and win over future EV buyers.
Those are the latest findings of the new Brand DeepDive report from EVForward™, the largest, most comprehensive study of the next generation of electric vehicle buyers. The dedicated platform was developed in 2019 by Escalent, a top human behavior and analytics advisory firm with extensive experience counseling the world’s automotive companies.
“While brands such as Tesla and Rivian continue to make headlines as the fresh entrants into an industry dominated by decades-old multinational corporations, many consumers have taken notice of the strides familiar auto brands have been taking to market—and improve—their electrified offerings,” said KC Boyce, vice president with the Automotive & Mobility and Energy practices at Escalent. “The idea that a new player to the automotive market will remain the leader as more and more established brands expand their EV offerings is far from a certainty.”
For more information, read the full report here: https://escalent.co/news/established-automakers-hold-edge-over-ev-start-ups-in-race-to-win-ev-shoppers/.
[From NADA] The NADA recently alerted members to a little-known requirement under what is known as the Mail, Internet, or Telephone Order Merchandise Rule that could arise as a potential issue for dealers as a result of the current market conditions. This week, the Federal Trade Commission (FTC) announced two enforcement actions under this Rule. A few things to note from the FTC notice published this week – according to the FTC:
1. First…
“a refresher on the requirements of the Mail, Internet, or Telephone Order Merchandise Rule. Under the Mail Order Rule, at the time sellers solicit an order, they must have a reasonable basis they will be able to ship: 1) within the stated time; or 2) if no time is stated, within 30 days. If a shipment is delayed, the Rule lays out sequential if-then steps sellers must take to ensure buyers aren’t left in the lurch….
2. There is no “COVID exception” to the Mail Order Rule.
“Certainly the pandemic has had an impact on the supply chain. But as the Court in the American Screening case observed, “[T]he law provides no exceptions for sellers that do their ‘best’ during pandemics”….That’s because the Mail Order Rule presciently built in procedures for times such as these. Assuming a seller had a reasonable basis to make a shipping claim in the first place, the Mail Order Rule includes step-by-step instructions on how to address an unanticipated shipment delay and still comply with the law.
3. Without records proving compliance, there is a rebuttable presumption of a violation of the Rule:
…If a company fails to have “records or other documentary proof establishing its use of systems and procedures which assure compliance,” the Rule establishes “a rebuttable presumption that the seller failed to comply with said requirement.” While there may be arguments/reasons why this Rule does not apply to specific dealers, out of an abundance of caution it may be worthwhile for many dealers to review their practices in light of the FTC guidance and attached materials to ensure appropriate systems and procedures are in place to meet any applicable requirements under this rule.
…If a company fails to have “records or other documentary proof establishing its use of systems and procedures which assure compliance,” the Rule establishes “a rebuttable presumption that the seller failed to comply with said requirement.”
While there may be arguments/reasons why this Rule does not apply to specific dealers, out of an abundance of caution it may be worthwhile for many dealers to review their practices in light of the FTC guidance and attached materials to ensure appropriate systems and procedures are in place to meet any applicable requirements under this rule.
Dealers periodically ask how long they need to keep certain documents or at what point can they be disposed of. The enclosed analysis, put together over 20 years ago by Crowe Chizek (now Crowe LLP), continues as an accurate and comprehensive analysis of these concerns, and continues to provide direction to our dealer members:
Records Retention Checklist
The Illinois Predatory Loan Prevention Act (PLPA) takes effect on August 1, 2022. Several key components of the Act are as follows:
Below is a sample of the form that must be provided:
DISCLOSURE OF 36% RATE CAP
A retailer shall not contract for or receive charges exceeding a 36% annual percentage rate on the unpaid balance of the amount financed for a retail installment contract, as calculated under the Illinois Predatory Loan Prevention Act (PLPA APR).
Any retail installment contract with a PLPA APR over 36% is null and void, such that no person or entity shall have any right to collect, attempt to collect, receive, or retain any principal, fee, interest, or charges related to the retail installment contract.
The annual percentage rate disclosed in any retail installment contract may be lower than the PLPA APR.
____________________________________
Borrower Signature
Co-Borrower Signature (If Applicable)
[From Automotive News] The National Automobile Dealers Association criticized as shaky the foundation for the Federal Trade Commission's new proposed dealership regulations. Among its counterpoints:
More information can be found in the July 18, 2022, Automotive News article.
The CATA is in the process of launching its all-new Website and membership portal. Designed to be more device friendly, informative, and helpful, the new www.CATA.info is also a portal for CATA member services. This portal will allow all CATA members to access forms, read news articles, register for events, and pay membership dues.
The new Website officially launched last week giving members a sneak peek at all the CATA has to offer. Over the next month, the CATA will transition all of its messaging and contact platforms to this single portal. During that time, the CATA will be updating contacts for every dealership and allied member. As part of this process, an email will be sent to the main contact at each member. This email will contain instructions on how to log into the portal and detail how each main contact can add other members of their organization to the membership. Doing so will grant access to the member section of the CATA Website, allow them to register for events, and pay membership dues.
Chicago’s minimum wage increased on Friday, July 1, when it rose above $15 per hour for the first time. There are some exceptions: For example, tipped employees must make a minimum of either $9.24 for large employers or $8.70 for medium-sized employers. Employers are required to make up the difference between tips received and the applicable minimum wage for employer size.
Cook County’s minimum wage also increased July 1, to $13.35 for nontipped workers and to $7.40 for tipped workers. The state minimum wage is $12 for nontipped workers 18 and over and $7.20 for tipped workers. It is set to increase Jan. 1, 2023, to $13 and $7.80, respectively.
Under the ordinance workers under 18 must be paid at least $12 an hour, up from $11 an hour last year. Another exception is for young employees — those 24 or younger — of religious corporations or organizations. They must be paid at least $12 an hour.
Scheduled changes were also made to the city’s Fair Workweek Ordinance, which requires employers in certain industries to give employees advance notice of their schedules and pay them for last-minute changes. Starting Friday, July 1, the umbrella of workers covered under the ordinance will expand and employers will be required to give those employees a few days’ additional notice of their schedules.
More information can be found here.
As auto prices surge, agency launches rulemaking to protect consumers’ pocketbooks and level the playing field for honest dealers. The Federal Trade Commission has proposed a rule to ban junk fees and bait-and-switch advertising tactics that can plague consumers throughout the car-buying experience. As auto prices surge, the Commission is seeking to eliminate the tricks and traps that make it hard or impossible to comparison shop or leave consumers saddled with thousands of dollars in unwanted junk charges. The proposed rule would protect consumers and honest dealers by making the car-buying process clearer and more competitive. It would also allow the Commission to recover money when consumers are misled or charged without their consent.
“As auto prices surge, the Commission is taking comprehensive action to prohibit junk fees, bait-and-switch advertising, and other practices that hit consumers’ pocketbooks,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Our proposed rule would save consumers time and money and help ensure a level playing field for honest dealers.”
The FTC is taking his step toward establishing a set of guidelines that would provide consumers with key protections against dealers who unlawfully charge junk fees without their consent or engage in bait-and-switch advertising. In the Notice of Proposed Rulemaking announced today, the Commission is seeking comment on proposed measures that would:
The notice includes questions for public comment to inform the Commission’s decision-making on the proposal. These include questions about provisions in the proposed rule and whether other provisions should or should not be included in the rule, as well as questions related to the costs and benefits to consumers and auto dealers of the proposed rule. In addition, the notice includes a preliminary regulatory analysis estimating that the net economic benefit of the rule would be more than $29 billion over ten years. After the Commission reviews the comments received, it will decide whether to proceed with issuance of a final rule.
The Illinois EPA has finalized revisions to the 35 Ill. Adm. Code 275, the Electric Vehicle Rebate Program rules. The first application window opened on July 1, 2022.
Illinois residents purchasing a new or used all-electric passenger vehicle or all-electric motorcycle from an Illinois licensed dealer are eligible for the rebate. Applicants that certify as low income are given priority in disbursement of the rebates.
Applicants must apply during a rebate cycle window and within 90 days of purchase of the vehicle. The application and instructions are available on the Illinois EPA’s Electric Vehicle Rebate Program webpage.
Eligibility requirements for an EV rebate in Illinois include, but are not limited to:
Applicants will need to submit the following along with the information contained in the rebate application:
More information can be found here: https://www2.illinois.gov/epa/topics/ceja/Pages/Electric-Vehicle-Rebates.aspx.
John Eggert of Hardt, Stern, and Kayne has called attention to an amendment to the Illinois Motor Vehicle Retail Installment Sales Act dealing with predatory lending that is scheduled to become effective on August 1, 2022. That amendment will require that on and after August 1, 2022, dealers, in connection with retail installment contracts, will need to deliver a clear and conspicuous Rate Cap Disclosure form to the customer, have that form signed, and retain the signed copy in the deal file. The retailer must provide this separate disclosure in English and in the same language as the retail installment contract. It is advised that you copy this language on to your dealership letterhead and provide it to the customer at the time of sale.
The approved language and form for the Rate Cap Disclosure is as follows:
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