CATA News

Tickets and coupons that admit the holder to the 2022 Chicago Auto Show free or at a reduced price can be ordered by CATA members using the order form posted at www.CATA.info.

 

The passes promote goodwill with customers and even can help persuade a prospect to close a deal. Two kinds of passes are available, General Admission tickets and Weekday Discount coupons. The former, which costs CATA members $7 each for a minimum 100 tickets, admits the holder to the auto show free, without a box-office wait. The coupon costs members $100 for 100 vouchers and admits the holder for $10 during the week.

 

Regular admission is $15.

 

The dollar thresholds in Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) that determine exempt consumer credit and lease transactions increases from $58,300 to $61,000 effective Jan. 1.

The thresholds are adjusted annually based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as of June 1 each year.

 

Local car dealers teamed up this holiday season with Chicago area charitable organizations to help fulfill the holiday dreams of less fortunate children. Area dealers from Fox Lake to Tinley Park understand the vital impact their businesses have on the communities they serve, which is why they have gone the extra mile for causes such as Toys for Tots and the Humanitarian Service Project. 

"Chicagoland’s new-car dealers are the pillars of their communities and among the first to donate to local organizations in need," said Chicago Automobile Trade Association Chairman Kevin Keefe. "This holiday season is no exception."

Ray Chrysler-Dodge-Jeep-Ram in Fox Lake partnered again with Jeeps on the Run (JOTR), a local Jeep enthusiast club and Lake County’s largest donating group to the U.S. Marine Corps Reserve Toys for Tots program. More than 750 Jeeps gathered Dec. 5 for a 25-mile, fully escorted JOTR caravan that kicked off at the dealership and culminated at the historic Genesee Theatre in Waukegan, where Jeep owners offloaded their Toys for Tots donations to the U.S. Marine Corps. 

"I started Jeeps on the Run nearly a decade ago as a family-oriented Jeep enthusiast club, but it has since evolved into a nonprofit organization that gives back to charitable organizations all year long," said JOTR President Mike Missak. "Jeeps on the Run has become a tradition for local families and, for many, it’s the kickoff to the holiday season. We simply wouldn’t have the success we do if it wasn’t for our supporters like Ray Chrysler Dodge Jeep Ram." 

The dealership also organized a raffle among participants to donate a 2021 Jeep Wrangler.

"We’re thrilled to be the primary sponsor for this wonderful cause for the second year in a row," said Ray Scarpelli Jr., owner of Ray Chrysler-Dodge-Jeep-Ram and Ray Chevrolet, also in Fox Lake. "We experienced so much success last year and saw firsthand the joy it brought to families in need, so it was a no-brainer for us to be involved again this year." 

Friendly Ford in Roselle hosted an annual "Fill a Ford" Toy Drive in partnership with the Humanitarian Service Project in Carol Stream to ensure that every child in DuPage and Kane counties living in poverty will have gifts to open at Christmas.

Community members brought to the dealership new and unwrapped toys for kids of all ages, for the dealership to "fill a Ford" with all of the toys and transport them to the Humanitarian Service Project for distribution to local families. Friendly Ford matched every toy with its own donation. 

Apple Chevrolet in Tinley Park also collected new and unwrapped toys for children of all ages, in partnership with the U.S. Marine Corps Reserves Toys for Tots program. Nearby residents helped the dealership reach its goal of filling eight Chevy Silverado pickup trucks with gifts to help bring holiday cheer to less fortunate children. 

"We’ve partnered with Toys for Tots for eight consecutive years, as what better way to bring joy to those in need and give back during the holiday season," said Apple Chevrolet Principal John Alfirevich. "We hosted holiday fun for local families with a DJ, balloon-making and even an appearance from the jolly guy himself, Santa." 

Because dealerships are closely weaved into the fabric of their local communities, many individuals and organizations turn to them in times of need. The CATA similarly has been a longtime supporter of local nonprofit organizations. The association has donated more than $100,000 to local charitable organizations through its Chicagoland Dealers Care program, which helps expand on CATA members’ donations and shine a spotlight on new-car dealers’ positive impact within their communities.

For more information on the CATA’s Chicagoland Dealers Care program, visit ChicagolandDealersCare.com. 

 

Dynatron Software, a CATA approved member partner, will host a webinar at 11 a.m. Dec. 15 to review the new revenue opportunities stemming from OEM warranty legislation effective Jan. 1. As you may be aware, House Bill 3940 was signed and takes effect Jan 1, 2022. This groundbreaking legislation requires IMMEDIATE ATTENTION to capitalize on significant short-term net profit impact.

To join the free webinar, go to https://meetings.ringcentral.com/j/8479133412.

 

The maximum amount that Illinois dealers can charge in 2022 for documentary preparation fees is $324.24, the Illinois attorney general’s office announced Dec. 10.

The $20.64 increase over the 2021 maximum fee reflects a 6.8% rise in the federal Consumer Price Index for the 12-month period ending Nov. 30. The index is tracked by the U.S. Department of Labor. As always, the DOC fee is taxable and must be substantiated upon request by the attorney general’s office.

The CATA is developing a poster about the DOC fee that dealer members can display. On the poster, the DOC fee amount is left blank for dealers to fill in; any amount up to the maximum allowed may be charged, but all customers should be charged the same amount. Systematically charging one group but not another — all males but no females, for instance — could bring charges of profiling.

Two copies of the poster will be mailed to dealers later this month. For limited additional copies, call the CATA at (630) 495-2282.

IMPORTANT: The new maximum fee cannot be charged before Jan. 1.

 

Carjackings across the country this year are up by 43%. In Cook County, they are on track to be the worst in two decades.

 

An Illinois task force that includes the Chicago Police Department, the Cook County Sheriff’s Office, the Illinois State Police and federal agencies are working together to stop the surge by sharing carjacking-related data. The goal is to track trends across the county that will help law enforcement stop carjackers. The taskforce also will use helicopters to eliminate dangerous car chases.

 

Most vehicles made after 2015 — which make up the majority of the area's hijacked vehicles — have the ability to be tracked. But police face challenges in working with vehicle manufacturers to trace the vehicles in a timely manner, sometimes having to navigate overly complicated processes.

 

One local victim, Dr. Stephanie Davis, was carjacked in broad daylight while she was stopped at a gas station. When Davis called her dealer, she was told the vehicle couldn’t be tracked, even though it had that capability. Later, she learned it was used in another carjacking.

 

The Cook County sheriff’s office developed a Consent-to-Release-Data form. Cook County Sheriff Tom Dart said that filling out and submitting the form will allow law enforcement to access data location information for the described vehicle from the relevant manufacturer if the vehicle has been unlawfully taken and such information is available. Swift access to such information can help law enforcement recover the vehicle.

 

Earlier this year, Dart’s office added a new member to the agency’s anti-carjacking squad: former radio talk show host Roe Conn. "It should be no surprise that an individual like Roe Conn, who spent years interacting with people from many different backgrounds and areas of expertise, would be a valuable asset in our efforts," Dart’s office said.

 

Conn, the sheriff’s office said, is working to "develop programs and processes that expand our agency’s crime data collection and dissemination efforts to support our local, state, and federal partners."

 

Dart said several factors contributed to the rise in carjackings this year.

 

"Over half of the carjackings are done by juveniles," Dart said. "And during COVID-19, so many of the afterschool programs and schools were [closed]. There were less [activities] for kids to do. That was part of it, but there were other dynamics that were coming into play," Dart said. 

 

"[Before the pandemic] if you had an individual with a mask on coming anywhere near you, you knew there was trouble afoot. Now, everyone has a mask on. As far as trying to arrest and prosecute people, it’s much more difficult to identify [suspects] because the norm is that everyone wears masks."

 

Dealership compensation for warranty repairs increases Jan. 1, when the calculation of reimbursement rates for most repairs will be at retail and not merely "reasonable" in a manufacturer’s view.

Illinois Gov. J.B. Pritzker on July 30 signed legislation that changes how manufacturer pay is calculated on warranty work. Manufacturers failed to reverse the move during the General Assembly’s fall session, although they did manage to trim payouts on engines and transmissions to 30% of what the franchisee paid.

All other compensation shall be no less than the amount charged to a retail customer for the same parts and service. Dealers can calculate labor times by using agreed upon guides or by 1.5 times the manufacturer’s time guide.

The coming changes were reviewed in a Dec. 7 webinar hosted by the Illinois Automobile Dealers Association and presented by law firm Bellavia Blatt’s Keith Gitman, an attorney, and Ken Lohr, the firm’s director of retail warranty reimbursement. Dynatron Software will host a similar webinar Dec. 15 for CATA members.

In addition to establishing an equitable compensation scheme for warranty work, the new law prevents manufacturers from imposing cost recovery fees or surcharges to overcome the legislation’s effect. For manufacturers, it preserves their right to approve or disapprove dealership claims, and it ensures manufacturers have a way to charge back any false or unsubstantiated claims they paid.

"The manufacturer looks for reasons to reject you. Perfection is the name of the game" in compensation filings, said Lohr. He added that using a third-party vendor to calculate parts and labor rates can help dealers maximize their reimbursement claims.

The new law requires that the booked time allowances for the diagnosis and performance of warranty work be no less than what is charged to retail customers for the same work, that manufacturers pay dealerships the same effective labor rate as the dealership receives for customer-pay repairs, and that manufacturers reimburse dealerships for any parts (except engines and transmissions) provided in satisfaction of a warranty at the prevailing retail price charged by the dealership when sold to retail customers. 

 

Mechanics Local 701, whose members include area technicians, worked with the CATA and other groups to advance the legislation. Supporters say it will bring a fairness to the payment process that could attract new technicians to dealerships.

New on labor: manufacturer compensation for labor must include any time spent on calls to technician assistance centers for diagnosis guidance. For accurate time calculations, Lohr said technicians should clock out of repair work, punch in separately for the time talking, and then punch back in to resume repair work.

In advance of Jan. 1, some manufacturers approached their franchisees about locking them in to uniform warranty reimbursement agreements that pay less than retail. Gitman said that state statutes trump any agreement, so even dealers who signed a uniform agreement can establish the labor time guides they will use.

 

Scott Muller, 63, a partner of the six-franchise Muller Auto Group in suburban Chicago and northwest Indiana, died Nov. 17.

 

Mr. Muller served on the CATA board of directors since 2019 and sat on the board's DriveChicago, Media Strategy, and Member Benefits committees.

 

Survivors include his children, Priscilla and Jared Muller; his father, Michael; and a brother, Mark.

 

Memorial contributions appreciated to the Wounded Warrior Project.

 

The next edition of this newsletter will include notice of the maximum documentary service fee that can be charged in 2022. 

 

The edition will go out Dec. 10, the same day the Illinois attorney general’s office will announce the ’22 max.

 

Dealers are critical members of their communities, and the CATA knows that many of you are contributing — whether monetarily or with volunteer hours — to local charitable causes this holiday season. The association wants to highlight those stories in an upcoming CATA Bulletin as well as in a press release that we’ll share with local media outlets to help showcase all the goodwill that dealers do for their communities. The holiday season brings along a sentiment of giving, so now seems like a good time to share some of those wonderful stories. 

 

To be included, please share as many details as possible (charity name, cause/mission, event date/time if applicable) with Jennifer Morand, the CATA’s director of PR and social media, at jmorand@drivechicago.com before Dec. 1.