CHICAGO AUTOMOBILE TRADE ASSOCIATION 2023-2024 ANNUAL REPORT AND DIRECTORY
Memberships in: • AUTOCPA Group • The American Institute of Certified Public Accountants • The Illinois CPA Society CERTIFIED PUBLIC ACCOUNTANTS Located in Central Illinois, we serve the entire state. Contact us today to learn how we can help your dealership thrive. Drive Your Dealership Toward Financial Success We specialize in automobile dealers in the following areas: • Dealership valuations • Automobile dealer legal support • Buy-Sells for dealerships • LIFO inventory computations • Financial statement analysis • Corporation Income Tax returns • Personal Income Tax returns • CPA prepared financial statements • Dealer estate planning • Employee theft consulting • Internal control studies and audits • Profit consulting • Training office managers/CFO’s • 401K Audits Serving more than 250 Automobile Dealers throughout the United States (309) 662-8797 Email: woodwardassoc@cpaauto.com Website: www.cpaauto.com 1707 Clearwater Avenue P.O. Box 1584 ·Bloomington, IL 61702 Drive Your Dealership Toward Financial Success Located in Central Illinois, we serve the entire state. We specialize in automobile dealers in the following areas: • Dealership valuations • Automobile dealer legal support • Buy-Sells for dealerships • LIFO inventory computations • Financial statement analysis • Corporation Income Tax returns • Personal Income Tax returns • CPA prepared financial statements • Dealer estate planning • Employee theft consulting • Internal control studies and audits • Profit consulting • Training office managers/CFOs • 401K Audits Serving more than 250 Automobile Dealers throughout the United States Memberships in: • AUTOCPA Group • The American Institute of Certified Public Accountants • The Illinois CPA Society Contact us today to learn how we can help your dealership thrive. Memberships in: • AUTOCPA Gr • The America Certified Pub • The Illinois C CERTIFIED PUB Located in C we serve the Contact us today to learn how we can help your de Drive Your Dealership Toward Financial Success We specialize in automobile dealers in the following areas: • Dealership valuations • Automobile dealer legal support • Buy-Sells for dealerships • LIFO inventory computations • Financial statement analysis • Corporation Income Tax returns • Personal Income Tax returns • CPA prepared financial statements • Dealer estate planning • Employee theft consulting • Internal control studies and audits • Profit consulting • Training office managers/CFO’s • 401K Audits Serving more th Dealers througho Email: woodwardassoc@cpaauto.c Website: www.cpaauto.com 1707 Clearwater Avenue P.O. Box 1584 ·Bloomington, IL 61702 1707 Clearwater Avenue P.O. Box 1584 Bloomington, IL 61702 Memberships in: • AUTOCPA Group • The American Institute of Certified Public Accountants • The Illinois CPA Society CERTIFIED PUBLIC ACCOUNTANTS Located in Central Illinois, we serve the entire state. oday to learn how we can help your dealership thrive. r p Toward Success omobile dealers in uations aler legal support ealerships computations ment analysis come Tax returns me Tax returns financial statements planning consulting studies and audits g managers/CFO’s Serving more than 250 Automobile Dealers throughout the United States (309) 662-8797 Email: woodwardassoc@cpaauto.com Website: www.cpaauto.com ue ngton, IL 61702 Email: woodwardassoc@cpaauto.com Website: Memberships in: • AUTOCPA Group • The American Institute of Certified Public Accountants • The Illinois CPA Society CERTIFIED PUBLIC ACCOUNTANTS Located in Central Illinois, we serve the entire state. ct us today to learn how we can help your dealership thrive. Your rship Toward cial Success e in automobile dealers in g areas: hip valuations obile dealer legal support ls for dealerships entory computations al statement analysis ation Income Tax returns al Income Tax returns epared financial statements estate planning ee theft consulting control studies and audits onsulting g office managers/CFO’s dits Serving more than 250 Automobile Dealers throughout the United States (309) 662-8797 Email: woodwardassoc@cpaauto.com Website: www.cpaauto.com ater Avenue ·Bloomington, IL 61702
18W200 Butterfield Rd. Oakbrook Terrace, IL 60181 Office: (630) 495-2282 Fax: (630) 495-2260 2023-2024 Annual Report and Directory 3
©2023 The Chicago Automobile Trade Association (CATA) | The newsLINK Group, LLC. All rights reserved. CATA Annual Report and Membership Directory is published one time each year by The newsLINK Group, LLC for the Chicago Automobile Trade Association. The information contained in this publication is intended to provide general information for review, reference, consideration and education. The appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. BUSINESS PRINCIPLES Chicago Automobile Trade Association Members Agree To: 9Promote and maintain honesty and dependability in our business operations and to avoid deception and fraud. 9Employ truth and accuracy in our advertising and selling of automotive products. 9Stand by any guarantee given with the sale and service of motor vehicles. 9Strive constantly to improve our business methods and ethics and to maintain fair competition to the end that the public will be better served. 9Refrain from the performance of any act that would be injurious or detrimental to the automobile-retailing industry or contrary to the public interest. 4
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JENNIFER RAFAEL Vice-President, Midwest, USA Jennifer.Rafael@dsma.com 312.927.9561 Most Dealer Principals believe they know what their business is worth, but often miss important factors, such as intangible assets, add-back’s and profit opportunities, all of which can make a huge difference. Trust your valuation to the professionals at DSMA to help you: GET IN TOUCH WITH JENNIFER TODAY USA HEAD OFFICE 4851 Tamiami Trail North, Suite 200 Naples, Florida 34103 833.650.4188 USA@DSMA.COM CHICAGO REGIONAL OFFICE 200 S. Wacker Dr. Suite 3100 Chicago, IL, 60606 312.674.4556 DSMA.COM/MIDWEST REGIONAL OFFICES Calgary, AB Chicago, IL Las Vegas, NV Montreal, QC Nashville, TN New York City, NY Scottsdale, AZ St. John’s, NL Vancouver, BC 1. Understand the true value of your business through 33 key factors. 2. Understand where your business fits in the industry landscape. 3. Ask for our market intelligence report for timely updates on industry multiples. 4. Gain valuable insight into your financial health with a full KPI review. 5. Make informed and fast decisions about your selling timeframe. 6. Make smart choices to enhance your business value when you are ready to sell. 7. Strategic succession planning and advisory services. DSMA’s automotive specialist accountants have valued over 1,500 dealerships just like yours, and are the most trusted at hunting profit and creating accurate Valuations. Our experience and expertise means you can trust our numbers, just like lawyers, accountants, banks, OEM’s and other dealers do! Whether you’re thinking of selling now or in the next 5 years, you should know the True Value of your Business in today’s market. YOUR FUTURE INVENTORY ANALYSIS ABOUT DSMA 1500+ 1000+ $6B+ 400+ 97% 171 DAYS Dealership Valuations Combined Years of Experience Generated in Value Dealerships Sold Deals Sold at Asking Price or Greater On Average to Close a Deal TRUE AUTOMOTIVE SPECIALISTS WITH THE FACTS TO BACK IT UP DSMA is not a typical brokerage. DSMA is an Automotive Intelligence and M&A Advisory Service with In-House Essential Services, made up of our Acquisition Management, Legal, Financial, Operations and Marketing teams. DSMA’s unique approach to mergers & acquisitions is designed to offer maximum success and value to all our clients while ensuring the highest levels of confidentiality. Whether you’re the owner or the operator of a single point or a multi-national automotive group we have your best interests in mind.
TABLE OF CONTENTS 4 Business Principles 8 Letter From the Co-President 10 Letter From 2022-2023 Chairman 12 Staff Phone and Email 14 CATA Officers 2023-2024 15 Board of Directors 16 Past Presidents and Board Chairmen 18 Board Committees 20 General Counsel 29 Employee Relations and HR Counsel 31 Legislative Consultants 32 CATA Headquarters 34 DriveChicago.com 36 Chicagoland Dealers Care 37 CATA Works For You 40 2023 Chicago Auto Show 42 CATA Approved Member Partners 49 CATA Recommended Consultants 52 Quick Links 53 Dealer Members 89 Allied Members 53 DEALER MEMBERS 53 Acura 53 Alfa Romeo 54 Aston Martin 54 Audi 54 Bentley 54 BMW 55 Buick 56 Bugatti 56 Cadillac 57 Chevrolet 60 Chrysler 62 Dodge 64 Ferrari 64 FIAT 64 Ford 67 Genesis 67 GMC 69 Honda 70 Hyundai 71 Infiniti 72 Jaguar 72 Jeep 74 Karma 74 Kia 75 Lamborghini 75 Land Rover 76 Lexus 76 Lincoln 77 Lotus 77 Maserati 77 Mazda 78 McLaren 78 Mercedes-Benz 79 MINI 79 Mitsubishi 79 Nissan 80 Porsche 81 Ram 83 Rolls-Royce 83 Subaru 83 Toyota 85 Volkswagen 86 Volvo 86 Mercedes-Benz Commercial Vans 89 ALLIED MEMBERS 97 Auctions 98 Finance 99 Factory Zone/Regional Offices & Distributors ANNUAL REPORT SECTION MEMBERSHIP DIRECTORY 7
Leading the Way Greetings CATA Members, I wanted to take the opportunity to introduce myself. My name is Jennifer Morand, Co-President of the CATA along with Dave Sloan, who earlier this year announced his plans to retire in spring 2024. I am beyond fortunate for Dave Sloan, our current board members and outgoing Chicago Auto Show Chairman Kevin Keefe who have elected me to serve in this prestigious role. That said, I am not new to the CATA or the automotive industry. Prior to this role, I served as the Director of Public Relations and Social Media for the CATA for more than a decade. I look forward to bringing my background and skills into this new role as President of the CATA and General Manager of the Chicago Auto Show. As a CATA dealer member, you and your dealership(s) have access to a variety of vital resources to support your business ranging from: • Dealer point-of-sale forms • Legal services • Employee relations and HR consultation • Legislative support • Educational resources and seminars • Fun networking events • Complimentary meeting/staff conference and training space • Dealership listings and new and used vehicle inventory posting on DriveChicago.com • Chicago Auto Show perks/discounts • In-store signage and materials to help you run your dealership efficiently and effectively All of this and so much more is available to dealers and included with your CATA membership. In addition to this Directory and Annual Report, we recently launched CATA’s new quarterly publication, CATA Up to Speed, designed to keep members apprised of the latest happenings within the CATA and our dynamic, fast-paced industry. Beyond serving this powerful, charitable dealer community, I have the honor and privilege, along with our outstanding CATA team members, of producing the largest and best auto show in the country: the Chicago Auto Show. We’ve been hard at work to maintain relevancy at a time when the impact of an auto show is questioned, and I can honestly say that the future is bright for the Windy City show. 8 LETTER FROM THE CO-PRESIDENT
Another barometer of success was the 2023 First Look for Charity black-tie gala. The event surpassed fundraising expectations, bringing in $500,000 more than anticipated, for a total of $2.5 million raised for 18 local charities. The attendee number resembled pre-pandemic attendance, another indicator that the show is growing again. Over the years, First Look for Charity has raised more than $60 million for organizations that need it the most. This is great news for the local dealer community as the Chicago Auto Show directly impacts consumers, piquing interest and — very importantly — driving customers to the dealership. Heading into 2024, we’re on track to win brands back to the show and hope to maintain and even add to the total number of indoor test tracks we had in 2023 (where we had a record-breaking seven indoor test tracks). Leading the way to the 2023 Chicago Auto Show was a new event, Chicago Drives Electric. We launched this event in the fall of 2022 with the intent of enticing consumers to learn about and experience the latest EVs, hybrids and plug-in hybrids in the form of test drives. The event was held at CATA headquarters in Oakbrook Terrace, and its success was overwhelming. Overnight, we filled up all test drive slots, and media came out in droves to cover the event, generating exposure. The branding and excitement carried over to the 2023 Chicago Auto Show in the form of a 100,000 sq. ft. indoor EV track. We held another successful Chicago Drives Electric from September 28 to October 1, which attracted more brands, more vehicles, test drive registrations and overall attendees than the first year. The number of test drive registrations increased by a substantial 50 percent over 2022! We’re excited to bring the EV track and education back to the 2024 Chicago Auto Show this February. Speaking of success, this summer 80 new-car dealers fired up their grills to host the USO Barbecue for the Troops to raise awareness and funds for the local military. This year marked the 10th anniversary, and dealers once again rallied their communities to raise $100,000 for the USO. Last year marked a huge milestone when dealers hit the $1 million dollar mark for the total amount raised since the program’s inception. That truly shows the power and impact of local dealers. Finally, the CATA recently underwent a rebranding/logo redesign project. The refreshed CATA logo was strategically designed to symbolize many of the elements that make up the fabric of this wonderful organization. We hope you like it. We look forward to another great year. Please don’t hesitate to get in touch with an idea, a suggestion, feedback or just to say hello. We value you and your membership of the CATA! Sincerely, Jennifer Morand Co-President, CATA 9
Dear Dealer, As my term in office as 2022-2023 CATA Chairman comes to an end and I take over responsibilities for the 2024 Chicago Auto Show, I would like to reflect on the CATA’s many accomplishments during the past year. After two years of COVID, 2022-2023 brought some normalcy back to the CATA. However, we were not bereft of challenges. On the legal front, we remain hopeful that the legal challenge to Rivian, filed several years ago, will ultimately prevail. We are also extremely supportive of the State of Illinois’ efforts to uphold the recent warranty modifications, which have been challenged in a lawsuit filed against the state by Volkswagen Group of America, Inc. The CATA recently responded to a discovery request in this matter. The CATA also responded to a discovery request in the dealer suit brought against Ford Motor Company challenging the legality of Ford programs involving the sale and distribution of electric vehicles. Finally, the CATA settled its litigation with a group of dealers who defected from the New Car Dealer Committee to strike their own agreement with Local 701. We have invited each of those dealers to rejoin the CATA and hopefully avail themselves of the benefits the CATA provides. As we all know, that the Chicago Auto Show is the financial engine that drives many of the CATA activities. The 2023 Auto Show was a greatly enhanced version of the two previous COVID-impacted shows, with increased exhibit space (back to both the North and South halls in McCormick Place), a well-attended and profitable ($2.6 million) First Look for Charity, seven indoor test tracks and four outdoor test drive opportunities and greatly expanded media and social media coverage. Leading the way to the 2023 Chicago Auto Show was a new event, Chicago Drives Electric. Held last fall, the event received terrific media coverage and provided nearly 3,000 in-vehicle experiences for consumers. This event was so well received by OEMs and customers that it was repeated at the end of this past September. The CATA Media Strategy Committee directs approximately $500,000 in CATA funding per year, with extraordinary enhancements provided by our media partners, toward the Chicago Auto Show, Chicago Drives Electric, Barbecue for the Troops, DriveChicago.com and other worthwhile events. The CATA Civic Dealer Relations Committee continued with the 16th year of the Chicagoland Dealers Care program, including the 10th Barbecue for the Troops initiative, bringing the total raised for the USO to more than $1 million. These LETTER FROM 2022-2023 CHAIRMAN Reflecting on Our Accomplishments 10
programs and campaigns are financially supported and produced by the CATA and participating dealers. The CATA Government Relations Committee directs the approximate $130,000 the CATA annually contributes to state and local officials, as well as the funds that NADA annually contributes to federal officials representing Illinois. The Committee also monitors pending bills in the Illinois legislature and consults with our Springfield lobbyist, Scott Marquardt, to take appropriate action as needed. The Committee works hand in hand with NADA, attending the annual NADA Washington Conference, meeting with Congressmen and encouraging dealers to contribute to NADA PAC. The CATA DriveChicago Committee is in the midst of a major restructuring of DriveChicago.com in its efforts to maintain the site as the destination for vehicle purchases in the Chicagoland area. The CATA Finance, Pension, Audit and Compensation Committee has worked diligently to find ways to increase association revenues and decrease costs, ensuring that the CATA remains a dominant source of dealer benefits in the future. The reduced Board of Directors size and reduced number of staff have led to cost efficiencies and better management. Aligned in this mission, the CATA Member Benefits Committee continually researches and vets allied companies in an effort to provide worthwhile programs and cost efficiencies to our members and to the CATA itself. The CATA Employee Benefits Committee continually seeks out new ways to provide benefits to all members at reasonable costs. To that end, the Committee is examining alternative roles that the CATA can play in providing important member benefits. The CATA provides a list of current Approved Member Partners and Recommended Providers that can be found at www.cata.info. The CATA Nominating Committee will continue to seek qualified hand-raisers to serve on the CATA Board of Directors. The Committee is dedicated to choosing knowledgeable candidates of the highest integrity to serve on the CATA Board. My appreciation goes out to the 12 members of the CATA Board of Directors who served so diligently this past year; to the CATA staff, especially Jen Morand, who completed her first year as CATA Co-President; Dave Sloan, who will be serving his final year in 2023-2024 as CATA Co-President; and Chis Konecki, who serves as Executive Vice President and is so knowledgeable about the Chicago Auto Show. Finally, I am grateful for the continued wise counsel provided by our longtime General Counsel, Dennis O’Keefe. I congratulate Kelly Webb Roberts on her election as CATA Chairwoman for 20232024. Kelly comes from a great automobile family, is extremely able and dedicated and will provide strong leadership during the upcoming year. Sincerely, J.C. Phelan, 2024 Chicago Auto Show Chairman 11
CATA Co-President and Auto Show General Manager DAVE SLOAN (630) 424-6055 dsloan@drivechicago.com CATA Co-President and Auto Show General Manager JENNIFER MORAND (630) 424-6084 jmorand@drivechicago.com Executive Vice President and Director of Auto Show Operations CHRIS KONECKI (630) 424-6075 ckonecki@drivechicago.com Senior Director of Project Management, Membership & Technology MARK BILEK (630) 424-6082 mbilek@drivechicago.com STAFF PHONE AND EMAIL 12
Director of Marketing JIM OBRILL (630) 424-6085 jobrill@drivechicago.com Communications & Marketing Manager HAYLEY FEICHTER (630) 424-6002 hfeichter@drivechicago.com Accounting/Finance Manager DONNA YOUNG (630) 424-6045 dyoung@drivechicago.com Meetings Coordinator ROXANNE SAMMARCO (630) 424-6060 rsammarco@drivechicago.com STAFF PHONE AND EMAIL 13
Kelly Webb Roberts 2023-2024 CATA Chairwoman and 2024 Chicago Auto Show Co-Chairwoman Webb Chevrolet, Oak Lawn Webb Chevrolet of Plainfield Genesis of Highland, Ind. Webb Hyundai of Highland, Ind. Webb Hyundai of Merrillville, Ind. (815) 436-2071 kelly@webbcars.com CATA OFFICERS 2023-2024 Photos: https://www.cata.info/leadership J.C. Phelan 2024 Chicago Auto Show Chairman Jack Phelan Chevrolet Jack Phelan Dodge Chrysler Jeep Ram (708) 442-4000 jc@jackphelan.com Jason Roberts 2023-2024 CATA Vice Chairman Advantage Acura of Naperville Advantage Chevrolet Bolingbrook Advantage Chevrolet in Bridgeview Advantage Chevrolet Hodgkins Advantage Toyota Calumet City (708) 352-2400 jroberts@advantagedealer.net Ryan Kelly 2023-2024 CATA Treasurer Kelly Nissan (708) 499-1000 rkelly@kellynissan.com Steve Phillipos 2023-2024 CATA Secretary Chevrolet of Homewood Ford of Homewood (708) 799-2000 sphillipos@homewoodchevy.com 14
BOARD OF DIRECTORS Emir Abinion Fox Valley Buick GMC Fox Valley Volkswagen (708) 977-0944 emir@foxvalleyag.com John Crane Glenview Luxury Imports (Alfa Romeo, Aston Martin, Lotus, Maserati) Golf Mill Chevrolet Golf Mill Ford Hawk Auto Group (Cadillac, Chevrolet, Chrysler, Dodge, Ford, Jeep, Mazda, Nissan, Ram, Subaru, Volkswagen) (815) 725-7110 jccrane512@gmail.com Jerry Haggerty Haggerty Buick GMC in Villa Park Haggerty Ford in West Chicago Jerry Haggerty Chevrolet in Glen Ellyn (630) 918-5966 jhaggerty@haggertyautogroup.com Fred Marks Classic Kia of Waukegan Classic Toyota of Waukegan (847) 336-4300 fmarks@classicdealergroup.com Richard Wickstrom Wickstrom Ford of Barrington Wickstrom Lincoln of Barrington Wickstrom Chrysler Dodge Jeep Ram of Barrington (847) 381-8850 richard@wickmail.com Dan Heller Heller Ford in El Paso Heller Lincoln Chrysler Dodge Jeep Ram in Pontiac (309) 527-6050 danheller@hellerstores.com Dan Marquardt Marquardt of Barrington Buick GMC (847) 381-2100 djm@marquardtonline.com 15
16 1904-1905 Howard Tucker, Winton 1905-1907 Ralph Temple, Electric Cars 1907-1908 Joseph Gunther, Rambler 1908-1909 W.L Githens, Oldsmobile 1909-1910 Thomas J. Hay, Ford 1910-1911 Louis Geyler, Hudson Autocar 1911-1914 N.H. Van Sicklen, Apperson 1914-1916 H.M. Allison, Packard 1916-1918 J.F. Davis, Winton 1918-1919 G.H. Bird, Paige, Jewett 1919-1921 Leo A. Pell, Mitchell 1921-1923 Thomas J. Hay, Chandler, Cleveland 1923-1925 Henry Paulman, Pierce, Arrow, Velle 1925-1927 C.D. Gambill, Hupmobile 1927-1929 O.G. Heffinger, Marmon 1929-1931 J.R. Histed, Hudson 1931-1932 R.G. Tiffany, Cadillac 1932-1934 Lafayette Markle, Duran, Olds 1934-1935 M.J. Lanahan, Dodge, Plymouth 1935-1937 K.K. Kenderdine, Buick 1937-1939 H.T. Holingshead, Nash, Lafayette 1939-1941 L.S. Snow, Ford, Lincoln 1941-1943 Ben T. Wright, Ford, Lincoln, Mercury 1943-1945 Paul B. Smithson, Packard 1945-1947 J.F. McManus, Jr., Chevrolet 1947-1949 Wm. D. Reagan, Chrysler 1949-1951 Frank H. Yarnall, Chevrolet 1951-1953 James F. Goodwin, Dodge, Plymouth 1953-1954 Steve J. Barrett, Buick 1954-1955 Earl T. Zweifel, Ford 1955-1957 C.J. McCorkle, Buick 1957-1960 Don C. Mullery, Ford 1960-1961 Maxwell S. Evans, Oldsmobile 1961-1963 Fred G. Litsinger, Ford, Lincoln, Mercury 1963-1964 Michael Schwartz, Chrysler, Plymouth 1964-1965 Walter A. Gerwig, Buick 1965-1967 Lawrence P. Faul, Oldsmobile 1967-1968 William S. Mougey, Pontiac 1968-1970 Richard V. Lynch, Buick 1970-1971 Lee Klinger, Dodge Volkswagen 1971-1972 Clarence W. Marquardt, Jr., Oldsmobile 1972-1973 Robert M. Foley, Buick 1973-1974 David Ostrow, Dodge 1974-1975 Sidney Markovitz, American Motors 1975-1977 Joseph J. Hennessy, Ford 1977-1978 William J. Sullivan, Pontiac 1978-1979 Stephen X. Foley, Cadillac 1979-1980 David Rick, Volkswagen 1980-1981 Richard Everman, Dodge 1981-1982 Joseph Bidro, Ford 1982 Ed Mathieu, Buick 1982-1983 Jack Haggerty, Oldsmobile PAST PRESIDENTS AND BOARD CHAIRMEN
17 1983-1984 Kenneth Bennett, Dodge 1984-1985 John Mathias, Pontiac 1985-1986 Robert J. Foley, Buick 1986-1987 Richard Hoskins, Chevrolet 1987-1988 Jerry Schiele, Imports 1988-1989 Robert L. Anderson, Ford 1989-1990 Ronnie Colosimo, Toyota 1990-1991 Fred Tuch, Jr., Buick 1991-1992 Joseph Lesniak, Chevrolet 1991-1992 Edward Mize, Pontiac 1992-1993 *Gerard Haggerty, Pontiac 1993-1994 Stan Mize, Nissan 1994-1995 Lee Weinman, Ford 1995-1996 Patrick Fitzgibbon, Dodge 1996-1997 Raymond Scarpelli, Sr., Chevrolet 1997-1998 Mike Cook, Ford 1998-1999 Bill Stasek, Chevrolet 1999-2000 Dan Feeny, Chrysler, Jeep, Dodge, Plymouth 2000-2001 Greg Webb, Ford 2001-2002 Bob Van Iten, Pontiac, GMC 2002-2003 Mike McGrath, Sr., Lexus, Acura 2003-2004 Casey Wickstrom, Chevrolet 2004-2005 Arthur Kelly, Nissan 2005-2006 Terry D’Arcy, Buick, GMC, Hyundai, Volkswagen 2006-2007 Bob Loquercio, Toyota, Honda, Hyundai 2007-2008 Mark Scarpelli, Chevrolet, Kia 2008-2009 John Phelan, Chevrolet, Chrysler, Dodge 2009-2010 Kevin Mize, Honda, Hyundai 2010-2011 Stephen X. Foley, Jr., Cadillac, Bentley, Rolls-Royce 2011-2012 Michael Ettleson, Buick, Cadillac, GMC, Hyundai 2012-2013 Kurt Schiele, Toyota, Scion, BMW, Jaguar 2013-2014 John Webb, Ford 2014-2015 Colin Wickstrom, Ford, Lincoln, Chrysler, Dodge, Jeep, Ram 2015-2016 Mike McGrath, Jr., Lexus, Acura, Honda, Hyundai 2016-2017 John Hennessy, Ford 2017-2018 Ray Scarpelli, Jr., Chevrolet, Chrysler, Dodge, Jeep, Kia, Ram 2018-2019 Tony Guido, Ford 2019-2020 Bill Haggerty, Buick, Chevrolet, Ford, GMC 2020-2022 Kevin Keefe, Honda, Subaru 2022-2023 J.C. Phelan, Chevrolet, Chrysler, Dodge, Jeep, Ram *In 1993, the title was changed from President to Chairman of the Board PAST PRESIDENTS AND BOARD CHAIRMEN
18 AUTO SHOW EXECUTIVE ◊ J.C. Phelan, Chairman ◊ Kelly Webb Roberts, Co-Chairwoman ◊ Jason Roberts ◊ Ryan Kelly ◊ Steve Phillipos BOARD COMMITTEES EMPLOYEE RELATIONS ◊ Ryan Kelly, Chairman ◊ J.C. Phelan ◊ Dan Marquardt ◊ Kelly Webb Roberts ◊ Jerry Haggerty CIVIC AND DEALER RELATIONS & FIRST LOOK FOR CHARITY ◊ Steve Phillipos, Chairman ◊ Dan Heller ◊ J.C. Phelan ◊ Jerry Haggerty ◊ Emir Abinion DRIVECHICAGO.COM ◊ Jerry Haggerty, Chairman ◊ Ryan Kelly ◊ Richard Wickstrom ◊ John Crane ◊ Jason Roberts FINANCE, PENSION, AUDIT & COMPENSATION ◊ Kelly Webb Roberts, Chairwoman ◊ J.C. Phelan ◊ Jason Roberts ◊ Ryan Kelly ◊ Steve Phillipos GOVERNMENT RELATIONS ◊ Jason Roberts, Chairman ◊ Dan Marquardt ◊ Emir Abinion ◊ John Crane ◊ Dan Heller
19 BOARD COMMITTEES MEDIA STRATEGY ◊ Emir Abinion, Chairman ◊ Richard Wickstrom ◊ Fred Marks ◊ Steve Phillipos ◊ Kelly Webb Roberts MEMBER BENEFITS ◊ Dan Heller, Chairman ◊ Fred Marks ◊ Emir Abinion ◊ Richard Wickstrom ◊ Dan Marquardt NOMINATING ◊ Kelly Webb Roberts, Chairwoman ◊ J.C. Phelan ◊ Jason Roberts ◊ Ryan Kelly ◊ Steve Phillipos
20 Dennis M. O’Keefe, P.C. 1025 W. Everett Rd. Lake Forest, IL 60045 (847) 482-0400 dokeefe@dmokeefepc.com Each CATA member is entitled to a limited amount of general legal advice from the association’s general counsel, Dennis O’Keefe. Dennis has extensive experience in the automotive industry, dealer line associations and manufacturer relations, as well as state and local government. CATA QUESTIONS AND ANSWERS The following is for informational purposes only and does not constitute a legal opinion. Should the need occur, members are encouraged to seek legal counsel. QUESTION 1: What is required under the Illinois Predatory Loan Prevention Act (PLPA)? The Illinois PLPA, which became effective Aug. 1, 2022, requires the dealer to provide a statutory notice to every customer who finances a vehicle explaining that 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 PLPA. The notice must also provide that any retail installment contract with a PLPA APR over 36% is null and void, and 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. Further, the notice must also provide that the annual percentage rate disclosed in any retail installment contract may be lower than the PLPA APR. It should be noted that all retail installment contracts or agreements must include this language as a “separate disclosure” signed by the consumer; the disclosure must be “clear and conspicuous (while clear and conspicuous is not defined in the PLPA, other regulatory acts require that a clear and conspicuous disclosure must be in at least 10 point type); the disclosure must be in English and in the same language as the retail installment contract; and the PLPA APR is based on the expansive definition of APR in the Military Lending Act (which includes all fees and charges, including charges and fees for single premium credit insurance and other ancillary products sold in connection with a credit transaction, which might otherwise be excludable from the APR).” QUESTION 2: I understand that dealer cash is now taxable in Illinois. Can you explain? You should note that dealer incentives paid to a dealer based upon the purchase of a vehicle from the supplier, and not conditioned on the retail sale of the GENERAL COUNSEL
21 vehicle, are not taxable. On the other hand, dealer incentives paid to the dealer and conditioned on the retail sale of a vehicle are taxable, except that: A. Dealer incentives contingent, at the time of sale, on making or having any additional retail sales (stair step incentives) are not taxable; and B. Dealer incentives or bonuses contingent on the dealer meeting certain manufacturer required marketing standards, facility standards or sales and service department satisfaction goals are not taxable (such as CSI store based or marketing-based incentives). QUESTION 3: I sell a car to a customer who provides me with the address of his Lake Geneva, Wisconsin, home. Do I need to charge him Illinois sales tax? The Illinois Revenue Code provides an exemption for Sales Taxes for purchases made by non-residents of Illinois. The fact that a customer has a domicile outside of Illinois does not mean that he is not an Illinois resident. However, since July 1, 2008, the Department of Revenue holds the dealer to the following requirements: 1. The purchaser must sign the following certificate: “I (purchaser), under applicable penalties, including penalties for perjury and fraud, state that I am not an Illinois resident. I understand that if I am a resident of Illinois, or if I use the motor vehicle in Illinois for more than 30 days in a calendar year as provided in 86 Ill. Adm. Code 150.310(a) (7), then I am liable for tax, penalty and interest on this purchase.” 2. The purchaser must also provide one of the following: a. A copy of the purchaser’s permanent non-Illinois Driver’s License; or b. If a copy of the non-Illinois Driver’s License is not kept or an Illinois license is present, a rebuttable presumption that the purchaser is an Illinois resident is created, which in turn requires the dealer to maintain other evidence of the non-residency of the purchaser, such as (i) Voters Registration Card with a non-Illinois address, or (ii) a copy of a purchase contract or lease agreement for a new non-Illinois residence, or (iii) a copy of a non-resident tax return, or (iv) credit report listing the purchaser’s primary residence in another state, or (v) property tax records claiming a homestead in another state, or (vi) other similar documentation. If the documents above are kept, then, absent fraud, the Department will only proceed against the purchaser for any claim that the exemption did not apply. If the documentation above is not kept, the Department will disallow the exemption, subject to further review by the Department. In the case of a motor vehicle lease, the above provision shall apply to the lessee as if the lessee was the purchaser.
22 QUESTION 4: How does a vehicle qualify for interim use exemption from sales taxes? Beginning July 1, 2008, the Illinois Department of Revenue set forth certain tests for automatic disqualification, safe harbor and situations not involving either of the above with respect to interim use exemption. Certain activities automatically disqualify a vehicle from the interim use exemption. They are: 1. Titling a vehicle in any person other than the retailer, manufacturer, the manufacturer’s captive finance company; or 2. Retailer claims IRC Section 179 depreciation on the vehicle (i.e., treats the vehicle as a totally deductible business expense in the first year); or 3. If the vehicle is leased, the gross receipts from the lease of the vehicle exceed the ultimate sales price of the vehicle. If the dealer meets all six of the following requirements, the vehicle will automatically qualify for the interim use exemption: 1. The vehicle must meet one of the following three requirements. It is: a. Listed in the dealer’s records as inventory; or b. Not depreciated by the dealer under IRC Section 167; or c. Otherwise indicated on dealer’s records, documents or operations as available for sale during the interim use period. 2. The interim use period is less than 24 months. 3. The vehicle is of the same general type sold by the dealer (i.e., a dealer of automobiles and light trucks that purchases another automobile or light truck, regardless of the brand, can do so and have it qualify for interim use, but cannot buy a trailer home or a large truck of a type not otherwise sold by the dealer and then claim interim use). 4. The vehicle is ultimately sold by the dealer. 5. For dealers who also lease or rent vehicles similar to the type of vehicle for which the interim use is claimed, then the dealer’s annual lease/rental revenue for all such vehicles must be less than the annual sales revenue for such vehicles. 6. If the vehicle is leased under a lease agreement for more than 30 days, then the lease agreement must contain a provision that if a buyer is found for the vehicle, then either (i) the lease may be terminated within seven (7) days, or (ii) the lessee will receive a comparable vehicle substituted by the dealer for the vehicle within seven (7) days. Finally, if the vehicle is not automatically disqualified, but does not qualify under the safe harbor, then the Department of Revenue will use all applicable and
23 available facts to determine if interim use applies. These factors include, but are not limited to: the retail sales history of such type of vehicles; inventory records; advertising on the vehicle and at the location of the vehicle; manufacturer’s contract terms, conditions, discounts and rebates; length and location of use or lease prior to sale; whether depreciation is taken under IRC Section 167; ownership and control documents; and if leased, whether the lease contract provisions provide that the vehicle is subject to recall, substitution allowance, and sale during the lease period. QUESTION 5: I spot-delivered a car to a customer, but I cannot obtain financing for him. What do I do if the customer refuses to return my vehicle or returns it with excess wear and tear or damage? If a customer refuses to return the vehicle, the dealer may sue for replevin and/or damages. However, the dealer does not normally have the right to repossess the vehicle at this time. Repossession is an extraordinary remedy that may be exercised by a dealer only when he has a security interest in the vehicle and there is a default. Inasmuch as the security interest normally won’t arise until execution of the retail installment contract, repossession is not available to dealers in these instances. Oftentimes dealers use riders to the Retail Installment Contracts with language that provides that the buyer shall return the automobile and that the seller shall return to the buyer all deposits less the value of any damage done to the vehicle. However, the Illinois Attorney General has issued an opinion that such language is in violation of Section 2C of the Illinois Consumer Fraud and Deceptive Business Practices Act which provides in relevant part: “If the furnishing of merchandise … is conditioned upon the consumers … having a credit rating acceptable to the seller and the seller rejects the credit application of that consumer, the seller must return to the consumer any down payment … made on the purchase order or contract and may not retain any part thereof. The retention by the seller of part or all of the down payment … is an unlawful practice within the meaning of the Act.” QUESTION 6: Does prior use need to be disclosed on the sale of a used vehicle? A recent Illinois appellate case indicates that a selling dealer has an affirmative obligation to disclose prior use of a used vehicle, specifically if the vehicle was used in fleet or rental operations. Moreover, this obligation is not limited to only the previous owner’s use. It appears that a good method of meeting this duty imposed by the courts would be to provide a customer with a complete vehicle history at the time of sale, using one of the well-known services to accomplish this. This information should be made available to the customer prior to his executing the closing documents; the dealer should have the customer sign an acknowledgment that he has provided this information prior to the sale and should retain that acknowledgment in the dealer file.
24 QUESTION 7: My customer has informed me that he is “revoking acceptance” of the new car that he purchased. What does this mean, and how can I contest it? Under Section 2-608 of the Uniform Commercial Code, revocation of acceptance is provided as an extraordinary remedy to a car buyer. The remedy is available only when the product’s non-conformity substantially impairs the product value to the buyer. While “substantially impairs” is an undefined term, the courts are given wide discretion in this area. The issue is to be judged from the perspective of the buyer, and might well include consideration of diminished value, as well as market value. The UCC clearly provides that revocation must be taken within a reasonable time after the buyer discovers or should have discovered the ground for it and before any substantial change in the condition of the goods, which is not caused by their own defects. It is possible to contest revocation on the theory that although the condition of the car may not have changed much in the physical sense, its value on the marketplace will already have declined appreciably since it is a secondhand car. However, if a buyer is successful in revoking acceptance, he is entitled to have refunded the entire retail price plus perceived monetary damages. QUESTION 8: May I do a direct mail campaign wherein a coupon is offered to further discount a vehicle for sale? No. This offer would be in violation of two Illinois provisions. The first, Section 475.530 of the Illinois Administrative Rules on Motor Vehicle Advertising, prohibits cash rebates, including, without limitation, a payment or an offset to a consumer or a payment to a dealer or a third party on behalf of the consumer on the condition that the consumer purchase or lease a motor vehicle, unless it is funded solely by the manufacturer pursuant to a manufacturer’s rebate program. Additionally, the Illinois Consumer Fraud and Deceptive Business Practices Act regulates “coupons.” It prohibits the use of any coupon offered in connection with a retail sale where the price is arrived at through bargaining or negotiation. QUESTION 9: May I send out a direct mail piece targeting customers who have filed for bankruptcy? This issue is covered by the Loan Advertising to Bankrupts Act. That Act provides that no person engaged in the business of making loans or selling property or services under installment contracts may include in any solicitation of or advertisement for such business any language stating or implying that a loan or extension of credit will be made to a person who has been adjudged a bankrupt. Accordingly, a dealer should avoid the use of the words “bankrupt,” “bankruptcy” and the like. It is permissible to imply that credit will be made to consumers who have “bad credit” or the like. Fines for violating this provision can amount to up to $1,000 for each person the advertisement reaches.
25 QUESTION 10: How far back may the manufacturer audit warranty claims or other incentive and reimbursement programs? The Illinois Motor Vehicle Franchise Act provides that the manufacturer shall have the right to require documentation for warranty claims and to audit such claims within a one-year period from the date the claim was paid or credit issued by the manufacturer. With regard to other incentive and reimbursement programs, the manufacturer has the right to audit such claims within a 12-month period after the date of the transactions that are subject to audit. Notwithstanding the above, the manufacturer retains the right to charge back any fraudulent claim if he establishes in a court of competent jurisdiction in this State that the claim is fraudulent. QUESTION 11: What amount of damage must be disclosed on a new or used vehicle? On a new vehicle, the Illinois Motor Vehicle Franchise Act, as amended Jan. 1, 2003, provides that a dealer must disclose in writing any damage of which he has actual knowledge, incurred between the end of the manufacturing process and the time of delivery, which exceeds 6% of the MSRP of the vehicle, excluding damage to glass, tires, bumpers, video and telephonic components, and in-dash audio equipment, if said items were replaced with OEM equipment. With regard to the sale of a used vehicle, no Illinois Statute applies. Accordingly, the theory of common law misrepresentation would provide for dealer liability for an intentional misrepresentation of a material fact relied upon by the customer to his detriment. In this context, intentional means the dealer “knew or should have known” of the damage. The definition of “material” is left to the courts, but the rule of thumb is that it is material if the purchaser would have made a different purchase decision had he had knowledge of the damage. QUESTION 12: How far away must a relocated or new franchise be from an existing franchise of the same line make? The Illinois Motor Vehicle Franchise Act provides that the manufacturer may not grant an additional franchise in the relevant market area of an existing franchise of the same line make or relocate an existing motor vehicle dealership within or into the relevant market area of an existing franchise of the same line make without a showing of good cause. The appointment of a successor motor vehicle dealer is prohibited from granting an additional franchise in the relevant market area, which is defined as an area within 10 miles from the principal location of the dealership in a county of more than 300,000 persons or the area of responsibility as defined in the franchise agreement, whichever is greater, absent a showing of good cause. With regard to both a proposed relocation or grant of additional franchise, the manufacturer may attempt to show, and has the burden to establish, that good cause exists. The relocation or granting of the new franchise may not take place before the hearing process is concluded pursuant to the Franchise Act. A determination of whether good cause exists is made by the Motor Vehicle Review Board pursuant to Subsection (c) of Section 12 of the Franchise Act.
26 QUESTION 13: What does the FTC used car rule generally provide? The used car rule, which became effective in 1985, requires a dealer to post a window sticker, called the Buyer’s Guide, on every used car or light truck offered for sale. The Buyer’s Guide must be in the exact format required by the rule and must be filled in according to the directions. In addition, the Buyer’s Guide, or a copy, must be provided to the purchaser at the time of sale, and the information contained therein must be incorporated into the Contract for Sale. Any dealer who offers six or more used vehicles for sale in 12 months is covered by this rule. However, sales to other dealers are excluded. Demonstrators are specifically covered. You should further note that if a used car transaction is conducted in Spanish, a Spanish-language version of the Buyer’s Guide must be provided to the consumer. Finally, if your dealership enters into a service contract with a consumer either at the time of sale or within 90 days thereafter, federal law prohibits you from disclaiming or modifying any implied warranty to the consumer. QUESTION 14: May I obtain a consumer’s credit report without written permission? Yes. The dealer may always obtain a credit report if the dealer has signed permission from the consumer. However, the FTC has recently interpreted the revised Fair Credit Reporting Act to provide for a two-part test for obtaining a consumer’s credit report without a signature. Those two parts are: 1. The consumer clearly understands that he or she is initiating the purchase or lease of a vehicle; and 2. The seller has a legitimate business need for the consumer report to complete the transaction. Accordingly, a dealer may not obtain a credit report without written permission when a consumer is requesting only a test drive or asking questions about prices or financing, or if it is solely for the purpose of negotiating with a customer. There are inherent risks in taking credit applications over the phone. Penalties can run to $2,500 per violation. When in doubt, written permission is always recommended, and such permission should be retained by dealers for three years. QUESTION 15: My customer purchased a vehicle and executed all the paperwork. Now, two days later, he has returned the vehicle to my dealership and claimed that he is rescinding the sale under the Federal Trade Commission’s “Cooling-Off Rule.” Can he do this? No. The Cooling-Off Rule, which provides three days to cancel purchases of $25 or more, applies to sales at the buyer’s home, workplace or dormitory, or at facilities rented by the seller on a temporary or short-term basis, such as hotel or motel
27 rooms, convention centers, fairgrounds and restaurants. It applies even when the purchaser invites the salesperson into his home. However, it does not apply to sales made on the premises of the dealership. It further specifically exempts sales of automobiles, vans, trucks or motor vehicles at auctions, tents sales or other temporary places of business, provided that the seller is a seller of vehicles with a permanent place of business. QUESTION 16: May I advertise a price for a vehicle wherein all rebates have been deducted, including a “loyalty” rebate that only applies to current owners of my manufacturer’s vehicles? No. A “loyalty” rebate, like a “college graduate,” “Farm Bureau” or “finance company” rebate is a “limited rebate” under the terms of the Illinois Administrative Rules on Motor Vehicle Advertising, since such rebates are not generally available to every consumer seeking to purchase or lease a motor vehicle. As such, it is a violation of Section 475.530 of those Rules to advertise a price or amount of an installment payment in which limited rebates have been deducted, or to advertise a total amount of rebate if a portion of the total consists of a limited rebate. QUESTION 17: May I offer an “internet special” where a specific vehicle or vehicles from my inventory are available at a lower price for a consumer who has logged onto my website and printed out a discount coupon? No. Any advertised price has to be available to all purchasers and cannot be limited to only those who have logged onto the internet. Additionally, use of a coupon on an internet site would similarly be in violation of the Illinois Consumer Fraud and Deceptive Business Practices Act provision that prohibits the use of any coupons offered in connection with a retail sale where the price is arrived at through bargaining or negotiation. QUESTION 18: Is there a 15-day/500-mile limited powertrain warranty requirement in Illinois for used vehicles? Yes, after July 1, 2017, on powertrain components defined as the following: the engine block, head, all internal engine parts, oil pan and gaskets, water pump, intake manifold, transmission and all internal transmission parts, torque converter, drive shaft, universal joints, rear axle and all internal rear axle parts and rear wheel bearings. The law exempts vehicles sold with more than 150,000 miles on the odometer, antique vehicles, vehicles that have a Gross Vehicle Weight Rating (GVWR) of 8,000 pounds or greater, or vehicles where the dealer offers an express warranty with equal or greater warranty coverage. Equal or greater warranty coverage means a warranty that covers powertrain components for 15 days or 500 miles and caps the consumer payment at $100 for up to two repairs unless the second repair is for the same problem.
28 The statutory warranty does not extend to damage that occurs after the sale of the vehicle resulting from off-road use, racing, towing, abuse, misuse, neglect, failure to perform regular maintenance or failure to maintain adequate oil, coolant or other required fluids or lubricants. Furthermore, the warranty is not violated if an alleged nonconformity does not substantially impair the use and market value of the vehicle or if the alleged nonconformity results from abuse, neglect or unauthorized modifications or alterations of the vehicle. If a covered vehicle develops a powertrain problem within the 15-day/500-mile period, the consumer is required to provide reasonable notice no later than two (2) days after the 15-day statutory period by text, phone, in writing or in person. The dealer shall be provided with a reasonable opportunity to fix the defect. The maximum liability of a seller for repairs is limited to the purchase price paid for the used motor vehicle, to be refunded to the consumer or lender, as applicable, in exchange for the return of the vehicle. Coverage on particular components can be waived if the dealer informs the customer in writing at the time of sale about a particular problem and the customer signs and acknowledges that he has been told of the problem. A statutory disclosure of this warranty must be provided to the customer at the time of sale. The warranty disclosure must be on the Purchase Contract or a separate document provided at the time of sale in at least 10-point bold font and must be signed by the customer. Unless the sale is exempt, dealers can no longer use the “As-Is” page of the Buyers Guide. Instead, dealers should use the “Implied Warranties Only” Buyers Guide and mark the “Implied Warranties Only” box if they only want to provide the required statutory warranty. To avoid unintentionally giving other implied warranties, dealers may also want to add a description in the Buyers Guide as to what the implied warranty under Illinois law is, or just refer to the limited powertrain warranty required by Section 2L of the Illinois Consumer Fraud and Deceptive Business Practices Act. If a dealer wishes to offer additional warranty coverage, he should mark the “Dealer Warranty” box, and then select full or limited warranty as appropriate. If the dealer’s warranty provides coverage equal to or greater than the 15-day/500-mile statutory warranty, no additional disclosures are needed. If the dealer warranty does not provide at least this coverage, then the dealer must describe both the 15-day/500-mile statutory limited powertrain coverage and his extended warranty coverage. QUESTION 19: Can you take the benefit of a sales tax exemption for educational, charitable, or religious organizations when leasing a vehicle rather than selling? No. That sales tax exemption only applies to sales, not leases. The only exemption for leases (and sales) is a lease to a governmental body with a valid Illinois exemption number.
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