2024-2025 ISSUE 3 2025 Chicago Auto Show Comes to a Successful Close for Its 117th Edition
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
6 ©2025 The Chicago Automobile Trade Association (CATA) | The newsLINK Group LLC. All rights reserved. CATA Up to Speed is published four times per year by The newsLINK Group LLC for CATA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of CATA, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. CATA Up to Speed is a collective work, and as such, some articles are submitted by authors who are independent of CATA. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. CONTENTS 5 Letter From the President Continuing Our Successes By Jennifer Morand, President, CATA 6 2025 Chicago Auto Show Comes to a Successful Close for Its 117th Edition 10 Chicago Auto Show’s What Drives Her Award Winners Announced 14 First Look for Charity Fundraiser at the 2025 Chicago Auto Show Raises More Than $2.4 Million for Local Charities 16 Chicago Auto Show Pivots to New Show Contractors A Strategic Move for 2025 and Beyond 17 Chicago Automobile Trade Association Member Golf Outing and Annual Meeting 18 Overcoming the Diagnostic Fee Dilemma Enhancing Customer Trust and Satisfaction By Dynatron Software 20 Staying Ahead in Uncertain Times On-the-Ground Insights on Tariffs, Market Shifts and Dealer Strategy By Dora Zorz, DSMA 23 Payment Strategies for a Changing Auto Retail World By Lyubena Smith, CTP, Treasury Sales Manager; Carl Dix, Treasury Solutions Sales Consultant; and Andy Rankin, Head of Treasury Solutions Sales, Truist Dealer Services 26 CATA Expanding Educational and Training Opportunities for Members 10 CATA UP TO SPEED 3
Dear Members, It was wonderful to see many of you this past February at the Chicago Auto Show, First Look for Charity gala or around the CATA! Coming off of the February Auto Show, I have to marvel at its success. The 117th edition of the show welcomed nearly 217,000 attendees to experience the latest cars, trucks and SUVs, automotive technology, and electric vehicles. The First Look for Charity black-tie gala raised more than $2.4 million for 18 local charities, bringing the grand total to more than $65 million raised since its inception! Throughout the show, there was also a record number of in-vehicle experiences (test drives and ride-alongs) of more than 100,000. We also featured two brand-new areas for the show this year. The new Family Zone was geared towards kids of all ages, featuring a power wheels track where they could take a test drive just like their parents. A giant toy replica Chevrolet Silverado and a Toyota Tacoma fishing game out of the bed of the truck, among many other activities, rounded out the area providing entertainment and memories. The Overlanding Chicago dedicated area featured manufacturer displays of specialty vehicles, upfitting vendors, off-road accessories and much more. Overlanding has become a sweeping nationwide trend that appeals to the adventure-seeker and a rugged/off-road lifestyle. The Chicago Drives Electric indoor EV test track returned and expanded from one track to two, providing attendees the opportunity to get inside the latest EVs to experience the power of electrified vehicles from a dozen different manufacturers. Based on research from third-party Productions Plus Insights, nearly 60% of attendees report they are now more likely to purchase an EV due to experiencing one at the 2025 show. This statistic demonstrates the importance that once people experience an EV, they feel more comfortable with the idea of owning one. We see this time and time again with our survey results, whether from the Chicago Auto Show or Chicago Drives Electric (our fall EV test-drive event). It’s not just relative to EVs … 82% of attendees said attending the show was helpful in their purchase decision, and 40% of 2025 attendees were 12-month intenders (with half reporting they plan to purchase their next vehicle within six months!). Furthermore, when brands are absent from the show, 67% of attendees reported it negatively impacts the purchase likelihood of that brand. Our team has worked extremely hard to gain participation from as many brands as possible, and this will remain a focus in 2026. Easing into spring, we will begin to shift our focus from show wrap-up and ramp up our educational events, seminars and webinars for members. We hosted a NADA Leadership Training course two weeks out of the month of March at the CATA and are looking to add more educational experiences throughout the year that provide value to our members. If you have a desire for a particular topic, don’t hesitate to contact us at the CATA. As a reminder, as a member of the CATA, you may also use our office for trainings or meetings. Just simply call the main line at (630) 495-2282. We have conference rooms and seating ranging from 10 people to 100. I hope to see you all at our upcoming CATA Member Golf Outing and Annual Meeting this June! The event will be held at the same location as in years past, Cog Hill Golf & Country Club in Lemont. Sincerely, Jennifer Morand President, Chicago Automobile Trade Association General Manager, Chicago Auto Show Letter From the President Continuing Our Successes By Jennifer Morand, President, CATA CATA UP TO SPEED 5
2025 Chicago Auto Show Comes to a Successful Close for Its 117th Edition The 2025 Chicago Auto Show came to a successful close on Monday, Feb. 17, after a 10-day run at McCormick Place. The 117th edition of the show welcomed nearly 217,000 attendees to experience the latest cars, trucks and SUVs, automotive technology, and electric vehicles — producing a record number of in-vehicle experiences of more than 100,000. The 2025 show featured an array of vehicles new to show attendees, including the debut of the 2025 Subaru Forester Hybrid, the 2026 Subaru Forester Wilderness and the 2025 Jeep Wagoneer S Limited. Manufacturers, including Polestar, Rivian and VinFast, participated in the Chicago Auto Show for the very first time. Other notable new vehicles at the show included the Cadillac Optiq, Cadillac Vistiq, Chevrolet Corvette ZR1, Ford Expedition, 2026 Honda Passport, 2026 Hyundai IONIQ 9, Lamborghini Revuelto, Lucid Gravity, Nissan Murano, Nissan Armada, Toyota 4Runner, Rivian R2, Rivian R3X and Volkswagen Tiguan. Concept vehicles also graced the show floor, including Chrysler’s Halcyon and Acura’s Performance EV, along with several custom concept SEMA builds from Kia, Jeep and Toyota. Four indoor test tracks provided consumers ample opportunities to experience the latest vehicles. The fan-favorite Camp Jeep track returned and celebrated its 20th anniversary at the 2025 Chicago Auto Show. Without even leaving the show floor, attendees experienced Camp Jeep’s thrill rides on an interactive indoor off-road course featuring Cherokee, Gladiator, Wagoneer and Wrangler. A Chicago Auto Show staple since 2005, Camp Jeep has provided more than 600,000 test rides at the show. Ford also brought back its popular “Built Wild” indoor test track, which featured the Bronco family of vehicles and gave attendees the thrill of conquering “Bronco Mountain,” a 38-degree hill inside of the show. Powered by ComEd, Chicago Drives Electric’s indoor EV track expanded from one track to two this year and featured a dozen total brands offering ride-alongs in 25 different models. 6 CATA UP TO SPEED
“The Chicago Auto Show is designed with consumers at the forefront, and the 2025 show was a true testament to our commitment to delivering a dynamic and engaging experience for every attendee that comes through the doors,” said Chicago Auto Show General Manager Jennifer Morand. “From hands-on experiences to showcasing the most innovative advancements in the industry, the show is all about connecting people with the technology and vehicles that are shaping the future.” Between the show’s four indoor test tracks as well as outdoor test drive experiences by Alfa Romeo, Chrysler, Dodge, FIAT, Ford, Jeep, Ram, Subaru and Tesla, the show produced more than 100,000 in-vehicle driving experiences, setting a new record. This year’s themed days and special events drew large crowds and attracted new audiences to the show. The Toyota Miles Per Hour run once again provided a unique twist for a winter race. Held indoors at the Chicago Auto Show and organized by the Chicago Area Runners Association, more than 700 runners paced a 60-minute run through the show floor for participants to record their own miles per hour. Toyota awarded the top three winners for men’s and women’s times at its post-run celebration. Over the course of four years, Miles Per Hour logged more than 15,000 miles indoors at the Chicago Auto Show. CATA UP TO SPEED 7
SHOW STATS • 82% of attendees said attending the show was helpful in their purchase decision. • 45% of attendees participated in a ride-and-drive experience while at the show. • 40% of attendees are 12-month intenders; half of whom plan to purchase within 6 months. • 53% of first-time visitors added a brand to their consideration list. • 67% reported a brand’s absence from the auto show impacted their purchase likelihood. • After experiencing an EV at the show, 59% said they are more likely to purchase an EV. Also returning to the show was the popular Chicago Friday Night Flights craft beer sampling event. This one-of-a-kind indoor event drew nearly 400 attendees who sampled different craft beers from more than 20 local breweries as they took in the show. Presented by Powering Chicago, Rivian and the U.S. Army, the second annual Automotive Career Day hosted more than 700 students for a lively morning filled with educational panels, networking and a career fair featuring local automotive employers and student-led engineering organizations. Moderated by ABC 7 Chicago’s Diane Pathieu, students heard from a range of speakers from manufacturers, such as BMW and Rivian, to local universities featuring the Illini Solar Car Team, Illini EV Concept and UIC Society of Engineers. The 2025 show saw the success of two new exhibit additions to the show floor. Overlanding Chicago drew consumers into a specialized space focusing on overlanding vehicles and an outdoors adventure-seeking lifestyle. Plus, the Family Zone garnered high foot traffic, offering families a safe and fun environment that allowed kids to enjoy themselves while being immersed in the auto show experience. “What’s unique about the Chicago Auto Show is its ability to draw audiences spanning a variety of backgrounds, whether or not they are in the market to purchase a new vehicle,” said 2025 Chicago Auto Show Chairwoman Kelly Webb Roberts. “The Chicago Auto Show is much more than a showcase of vehicles; it’s a dynamic experience that brings together automotive enthusiasts, industry professionals and everyday consumers, creating a space where innovation, passion and curiosity collide.” Fans’ engagement translated to social media as well. Initial Meltwater data reports the Chicago Auto Show’s message reached more than 93 million over the last 90 days, with more than 600 YouTube videos produced to date. The Chicago Auto Show’s social channels alone generated more than seven million impressions, with the overall sentiment being positive. Many fans have been excited about the return of manufacturers and new spaces at the show across all social platforms. Finally, the show saw support from new and returning sponsors. 2025 premier partners included Cars.com and ComEd, along with supporting sponsorships from NASCAR Chicago, AT&T, Shell Recharge and the U.S. Army. Joining the sponsorship line-up in 2025 were Drive Chicago, Bally’s Chicago and the Griffin Museum of Science and Industry. The Chicago Auto Show is already gearing up with plans to return to McCormick Place in February 2026. Tentative dates for the 2026 show are Feb. 5-6 (Media Preview), Feb. 6 (First Look for Charity) and Feb. 7-16, 2026 (public show). For more information on the Chicago Auto Show, visit www.chicagoautoshow.com. 8 CATA UP TO SPEED
Chicago Auto Show’s What Drives Her Award Winners Announced Chicago Auto Show organizers, in partnership with A Girls Guide to Cars, held the eighth annual What Drives Her program during the show’s Media Preview on Thursday, Feb. 6. Industry leaders from across the country came together for a robust discussion and award recognition ceremony to highlight women in four different categories: Industry Trailblazer, Best in Craft Media, Automotive Ally and Best Retailer. This year’s awards also honored an award-winning journalist with the 2025 Lifetime of Inspiration award. The program gives industry leaders a stage to share trends, stories and personal anecdotes of the integral role that women hold in the auto industry. This year’s program, sponsored by A Girls Guide to Cars and CDK Global, brought female executives to the Chicago Auto Show stage for a program centered around female purchasing power and trends. The panel, titled “What Drives Her … To the Off-Road Trail,” was moderated by Scotty Reiss, founder of A Girls Guide to Cars. Panelists included Kelsey Gerken, Cause Marketing & Bronco Off-Roadeo Manager for Ford Motor Company, and Bridget Kramer, Jeep Wrangler Brand Manager for Jeep. “It’s incredible to think that an inkling of an idea to spotlight amazing women in the industry has grown into what it has today,” said Jennifer Morand, co-founder of the What Drives Her program and general manager of the Chicago Auto Show. “What Drives Her isn’t just about celebrating the women who’ve made it — it’s about inspiring the women who are still climbing, the ones who are just beginning their journey, and the ones who, years from now, will lead the industry to places we can’t even imagine yet.” 10 CATA UP TO SPEED
The 2025 winners for each category are as follows. INDUSTRY TRAILBLAZER AWARD: AUDREY MOORE, VICE PRESIDENT AND CHIEF ENGINEER — NORTH AMERICA SEDAN PROGRAMS, STELLANTIS Audrey Moore has served in a variety of roles during her 25-year career with Stellantis, including as chief engineer for the all-new Dodge Charger multi-energy lineup, which includes the Dodge Charger Daytona R/T and the 670-horsepower Dodge Charger Daytona Scat Pack. Moore is also leading the development of the four-door Dodge Charger Daytona models that will arrive in the U.S. in the first half of 2025. Colleagues recognized Moore for her deep technical knowledge that provides confidence within the team and enables them to execute flawlessly. Industry Trailblazer finalists included: Claudia Marquez, chief operating officer, Hyundai Motor America, and Tricia Morrow, global vehicle safety strategy manager, General Motors. BEST IN CRAFT MEDIA AWARD: EMME HALL, FREELANCE JOURNALIST Emme Hall is an award-winning automotive journalist who has been testing and reviewing vehicles for more than 15 years. Hall has written for a plethora of automotive media outlets, including the Car and Driver, MotorTrend, TechCrunch, The Verge, Jalopnik and Motor. Hall was unable to attend and sent a video message in her absence stating, “Thank you so much for this award for What Drives Her, excellence in automotive journalism. I am so excited; it is such an honor.” Best in Craft Media finalists included: Elana Scherr, senior features editor, Car and Driver, and Nicole Wakelin, editor at large, CarBuzz. AUTOMOTIVE ALLY: JOEL FEDER, SENIOR PRODUCER, INTERNET BRANDS Joel Feder has worked in the auto industry for more than 14 years. Frequently a guest on Drive Chicago’s radio program, various podcasts and appearing on Cheddar along with Fox News, Feder is regarded as an industry insider. Feder was nominated by colleagues and recognized as a point person and leader in the industry by both automotive journalists and manufacturers. Automotive Ally finalists included: Dean Case, communications consultant, and Kimatni Rawlins, president and publisher, Automotive Rhythms Communications. CATA UP TO SPEED 11
BEST RETAILER: KELLY DONKU, SALES MANAGER, BILL JACOBS BMW Kelly Donku was nominated by her colleagues for her success through strong leadership and mentorship. In her role as sales manager, Donku has fostered a culture of mentorship and development. Recognizing the value of internal growth, she has been instrumental in the company’s strategy to cultivate talent from within. Donku was commended for her dedication to identifying, nurturing and empowering talent as 64% of the sales team at Bill Jacobs BMW is comprised of employees promoted internally, an achievement tied to Donku’s leadership. Her influence extends beyond her immediate team; she is recognized as a steadfast advocate for diversity and inclusion, fostering an environment where all voices are valued. She actively participates in initiatives aimed at developing future leaders, sharing her insights and experiences to inspire others to achieve their full potential. Best Retailer finalists included: Valerie Nazimek, general manager, Smith Chevrolet of Hammond; Angel Pieniazek, office manager, Hopkins Ford of Elgin Inc.; and Maggie Webb, business development manager, Packey Webb Ford. LIFETIME OF INSPIRATION: ROZ VARON, 2025 HONOREE Roz Varon was presented with the award to honor her dedication and longevity in reporting from the Chicago Auto Show floor. Roz began her career with ABC 7 Chicago in 1989 and started covering the Chicago Auto Show soon thereafter. Roz retired from the station soon after covering her last Chicago Auto Show in February 2024. For more information on What Drives Her, visit chicagoautoshow.com/news/what-drives-her. CATA UP TO SPEED 12
Truist.com/DealerServices The auto retail industry is more complex than ever. We’re here to help you make the right moves. From adopting AI to navigating economic uncertainty, auto dealers today face unique challenges. Truist Dealer Services knows this industry inside and out—and more importantly, we’re invested in knowing you. Truist Bank, Member FDIC and Equal Housing Lender. © 2024 Truist Financial Corporation. TRUIST, the Truist logo and Truist Purple are service marks of Truist Financial Corporation. All rights reserved.
First Look for Charity Fundraiser at the 2025 Chicago Auto Show Raises More Than $2.4 Million for Local Charities 14 CATA UP TO SPEED
The Chicago Auto Show raised more than $2.4 million benefiting 18 local charities at the First Look for Charity gala. The black-tie benefit, held the evening before the show opened to the public, raised a total of $2,457,808. The fundraiser’s 33-year event now tallies more than $65 million raised. “The 2025 Chicago Auto Show is the perfect backdrop for Chicagoland new-car dealers to host this wonderful gala,” said Kelly Webb Roberts, 2025 Chicago Auto Show chairwoman. “This night is all about raising funds to support 18 local charities that do so much good within our communities.” First Look for Charity provides attendees with an exclusive viewing of the Chicago Auto Show a day before it opens to the public. Tickets to the fundraiser are $325 each, and purchasers may elect to have their proceeds equally benefit all participating charities or any one charity of their choosing. The show floor is filled with gourmet food from local Chicago restaurants, live music and premium drinks. This year, two brand-new vehicles were given away to attendees. Michael Schultz was the lucky winner to walk away with keys to a new 2025 Chevrolet Equinox EV, compliments of Chicagoland and Northwest Indiana Chevy Dealers. Marco Onofre had the winning ticket for the second vehicle, a 2025 Hyundai Palisade, compliments of Chicago and Northwest Indiana Hyundai Dealers. Since its inception, First Look for Charity has raised more than $65 million for the participating local charities. The Chicago Automobile Trade Association (CATA) and new-car dealers also support charities year-round through a program called Chicagoland Dealers Care. Chicagoland Dealers Care helps match donations made by CATA dealer members to charities within their communities. The 2025 First Look for Charity beneficiaries include: 100 Club of Illinois; Advocate Health Care; ALS United Greater Chicago; Ann & Robert H. Lurie Children’s Hospital of Chicago; Boys & Girls Clubs of Chicago; Cal’s Angels Pediatric Cancer Foundation; Folds of Honor; Franciscan Community Benefit Services; Glenwood Academy; Habitat for Humanity; Jesse White Tumbling Team; Lydia Home & Safe Families for Children; Misericordia; Sertoma Star Services; Special Olympics Illinois; Susan G. Komen, Chicago; Turning Pointe Autism Foundation; and Violet Foundation for Pediatric Brain Cancer. For more information on First Look for Charity, visit firstlookforcharity.org. 15 CATA UP TO SPEED
Chicago Auto Show Pivots to New Show Contractors A Strategic Move for 2025 and Beyond Coming out of a nearly two-decade-long partnership with a former general show contractor, the Chicago Auto Show made the strategic decision to award the show contractor duties to a few new partners who managed freight, decorating and electrical services for the 2025 Chicago Auto Show with the goal of helping exhibitors operate more efficiently and trimming overhead costs by as much as 20%. The breakaway departure from the “traditional” show contractor model where one company handled all aspects of the show — including freight, rigging, decorating and electrical — was transformed into a segmented operation. The specific contractor pieces were awarded to three different entities: Event Design Group, Prime Electrical and Exhibition Services, and Absolute Productions. In addition to lowering rates, this strategy provided exhibitors a more “personal touch” as many of the new individuals managing the exhibitor’s business formerly served as exhibit appointed contractors (EACs) for the manufacturing exhibitors. Director of Auto Show Operations Chris Konecki summarized, “Who better than veteran former EAC personnel would have the ability to instinctively understand and accommodate the needs of our current exhibitors? Having personally been through many of the frustrations that can come from dealing with the former outdated model, our new partner’s approach was refreshing; they better understood our exhibitors’ needs and were more in tune to the timelines facing them.” “Now that the show is in the rearview mirror, we are confident that we made the right decision with making these changes and are happy with the outcome,” added Konecki. “All new ideas and processes come with some learning, which was certainly the case for us this year, but our intention is to build on those lessons heading into 2026 and beyond.” 16 CATA UP TO SPEED
GOLF OUTING MEMBER COG HILL GOLF & COUNTRY CLUB AND ANNUAL MEETING june 10 Dealer Members: $100 Allied Members: $130 Lunch Only: $40 CONTESTS Closest to the Pin Hole-in-One Longest Drive Longest Putt Registration fees increase May 10 CHICAGO AUTOMOBILE TRADE ASSOCIATION REGISTER BY MAY 28 Take your shot to qualify for the $10,000 putting contest www.CATA.info/Golf-Outing | 630-495-2282 SCHEDULE 10am Check-in & Networking 11am Lunch & Annual Meeting 12pm Shotgun Start 5pm Happy Hour & Raffle Drawing
Overcoming the Diagnostic Fee Dilemma HOW TO OVERCOME THE DIAGNOSTIC DILEMMA In order to overcome the diagnostic dilemma, it is important to understand and implement the 3-Tier Diagnostic Process, a powerful marketing tool designed to boost customer engagement and increase repair sales. Understanding the 3-Tier Diagnostic Process The 3-Tier Diagnostic Process is not just another way to diagnose vehicle issues; it’s a strategic approach aimed at winning over customers and selling necessary repairs. As the name suggests, it involves three diagnostic charges, cleverly named DIAG1, DIAG2 and DIAG3. These charges are designed to play a vital role in getting customers through the door and convincing them to proceed with the required repairs. • DIAG1 — The Customer Engager: DIAG1 is the lowest‑priced diagnostic fee and serves as a tool to encourage customers to come in for a diagnostic service. This diagnostic can be sold over the phone, making it perfect for service advisors and BDC reps to use when talking to customers. By charging a small fee for this service, the shop can filter out those who are merely curious and not willing to invest in necessary repairs. DIAG1 sets the stage for the entire process. • DIAG2 — Convincing the On-Site Customer: DIAG2 comes into play when the customer is already in the shop and explains an issue with their vehicle to the advisor. It is priced higher than DIAG1 but remains reasonable enough not to drive the customer away. By offering DIAG2, the shop increases the likelihood of the customer staying on-site for Enhancing Customer Trust and Satisfaction By Dynatron Software Almost daily, we encounter situations on the phone or on the service drive where customers are hesitant to proceed with a diagnostic service and repair due to cost (the dreaded diagnostic fee). At your dealership, it’s essential to strike a balance between maintaining profitability and ensuring customer satisfaction. In this article, we’ll explore two common scenarios where the diagnostic fee can create barriers and how we can address them leveraging service to build stronger customer relationships AND sell the diagnostic and the repair 90% or more of the time. SCENARIO 1: THE LOST CALL Picture this — a concerned customer calls in, describing a mysterious squeaking noise in the front of her car. They inquire about the cost and the possibility of your earliest appointment. However, the service advisor informs the customer about the $129.95 diagnostic fee required to identify the issue. The customer says they need to mull it over and will call back. Sadly, the call never comes, and the opportunity may have slipped away. SCENARIO 2: THE WALL OF HESITATION Another customer walks into the shop with a strange noise issue in the car’s front end. The service advisor mentions the $129.95 diagnostic fee to uncover the problem and provide a repair quote. The customer hesitates and considers backing out, deciding to stick with just an oil change instead. The advisor quickly offers to waive the fee if the customer chooses to have the repair done at the shop, seemingly removing the barrier. While offering to waive the diagnostic fee might seem like a win-win solution, it can lead to an unintended consequence. If the repair quote includes the diagnostic fee, the customer might feel misled, perceiving the shop as unnecessarily expensive. This can drive them to seek alternatives, potentially losing the customer altogether. 18 CATA UP TO SPEED
the diagnostic, thus creating an opportunity to propose the essential repairs. • DIAG3 — Reserved for Complex Cases: DIAG3 is reserved for special cases involving heavy-duty trucks, diesels, complex electrical problems, and intricate engine and vehicle issues. This diagnostic is the exception, not the norm, and should only be used when truly necessary. Experience shows that DIAG3 often leads to declined repair work, making it essential to use it sparingly. Benefits of Implementing the 3-Tier Diagnostic Process Now that we understand the fundamentals of the 3-Tier Diagnostic Process, let’s explore its benefits and why it’s preferred over offering free diagnostics: • Filtering Uncommitted Customers: By charging a small fee for diagnostics, the shop filters out customers who are merely seeking free estimates and have no intention of investing in repairs. This ensures that the shop’s time and resources are focused on customers who are more likely to proceed with the recommended repairs. • Boosting Customer Confidence: The tiered approach helps build customer confidence as they are gradually introduced to the diagnostic process. Starting with a lower-priced diagnostic (DIAG1) and gradually moving up if necessary (DIAG2 and DIAG3) makes customers more receptive to the idea of investing in repairs. • Increasing Repair Sales: By leveraging DIAG1 and DIAG2 as marketing tools, the shop paves the way for selling the required repairs. Customers become more inclined to accept the proposed repairs, having already invested in the diagnostic process. Remember, each shop’s pricing and approach may vary, so tailor the process to suit your specific market and customer base. CONCLUSION By following the 3-Tier Diagnostic Process as outlined, your shop can expect to sell a DIAG opcode 95% or more of the time. This will improve your Repair Effective Labor Rate (ELR) since DIAG opcodes have higher ELRs than most other services. Incorporating the 3-Tier Diagnostic Process into your service department’s workflow can lead to a remarkable improvement in performance. By utilizing DIAG1, DIAG2 and DIAG3 as marketing tools and documenting the diagnostic results on the RO, your shop can filter out uncommitted customers, boost customer confidence and significantly increase repair sales. This strategic approach not only helps filter out uncommitted customers but also builds confidence and drives repair sales, ensuring your shop remains both profitable and customer-focused. Ready to take your service department to the next level? Learn more about how Dynatron Software can help you implement this process and achieve outstanding results by scanning the QR code. https://go.dynatronsoftware.com/cata CATA UP TO SPEED 19
STAYING AHEAD IN UNCERTAIN TIMES On-the-Ground Insights on Tariffs, Market Shifts and Dealer Strategy By Dora Zorz, DSMA NAVIGATING A CHANGING LANDSCAPE With shifting tariffs, evolving supply chains and growing consumer uncertainty, dealerships are being forced to navigate a landscape that changes almost daily. According to Jennifer Rafael, Vice President and Partner, Midwest USA at DSMA, the global leading automotive mergers and acquisitions (M&A) firm, “This moment isn’t just about reacting — it’s about strategically preparing for what’s next. Everyone’s focused on the immediate impacts of the market,” she explains. “But you really need to take into consideration the right go-forward approach for your business model. That includes evaluating what changes need to be made to adapt to what’s ahead.” This is where DSMA comes in. As the top automotive M&A firm, DSMA provides full-service support for both buyers and sellers, offering expert valuations, strategic consulting and seamless end-to-end transaction management. With unmatched industry insight and a deep understanding of shifting market dynamics, DSMA empowers clients to navigate change with confidence. In this article, Jennifer shares key insights from her experience, offering valuable strategies to help those in the M&A space stay ahead in uncertain times. STRATEGIC PREPARATION AND FORWARD‑LOOKING VALUATIONS Jennifer emphasizes that now is the best time for dealers to have their businesses evaluated. DSMA’s approach extends beyond analyzing current performance by projecting into the future. “Our valuations are comprehensive,” she states, “We assess past, present and future values, and run various pro-formas to show how things like tariffs will affect every department — from service and parts to sales. That kind of insight is crucial in a time like this.” UNDERSTANDING TARIFF IMPACTS ACROSS DEPARTMENTS While much of the anxiety in the dealership space stems from tariffs, Jennifer notes that not all areas will feel the impact equally. “Tariffs won’t impact F&I that much,” she explains. “But they will significantly affect sales and fixed ops. What many dealers don’t realize is that tariffs are only being applied to future inventory. What’s currently sitting on the lot isn’t affected — yet. That gives dealers a brief window of opportunity to plan and act strategically.” She further reminds us that many U.S. vehicle brands rely on foreign-made parts, signaling that the effects of these tariffs will eventually be felt across the board. SHIFTING CONSUMER BEHAVIOR AND RECENT MARKET TRENDS Consumer behavior is notably shifting in response to market uncertainty. “Consumers don’t know what’s coming next,” Jennifer observes. “They’re cautious, but they’re out there — and that’s an opportunity for dealers who are prepared to meet them where they are, with the right messaging, pricing and inventory strategy.” Keep in mind, in the last 30 days, dealers have been busy as consumers, in fear of tariffs, have rushed to purchase vehicles. However, this pace is now slowing down due to confusion surrounding the tariffs. LEVERAGING INDUSTRY SUPPORT AND STRATEGIC ALLIANCES For Chicagoland dealers, organizations such as the Chicago Automobile Trade Association (CATA) remain invaluable. Jennifer underscores that, while CATA’s influence on international trade policy might be limited, its role as a resource for timely, relevant information is more important than ever. “CATA is a great resource,” she says. “They’re doing their best to fight for dealers, and more importantly, they provide relevant, timely information. This is when dealers should really lean on what CATA offers.” ADAPTING FOR FUTURE SUCCESS Jennifer’s advice to dealers is clear: “Don’t wait to adapt. Now is the time to gain a full understanding of your dealership’s value and future outlook. Evaluate your current position, strategize smartly, and stay ahead of the inevitable changes taking shape in the industry.” CONNECT WITH DSMA’S TEAM If you’re looking to buy, sell or receive a comprehensive dealership valuation, connect with Jennifer Rafael directly at jennifer.rafael@dsma.com or (312) 927-9561. For more information about DSMA’s full range of services, visit dsma.com. 20 CATA UP TO SPEED
For more information, or to learn more about our 100+ opportunities, visit DSMA.com. OUR MIDWEST TEAM NO MONKEY BUSINESS. SELL YOUR DEALERSHIP WITH DSMA. LET US: MAXIMIZE THE VALUE OF YOUR BUSINESS TAP INTO THE LARGEST BUYER’S POOL IN 171 DAYS* WITH THE UTMOST CONFIDENTIALITY SELL YOUR DEALERSHIP SCAN THE QR CODE OR CALL 1-833-650-4188. DSMA IS THE #1 GLOBAL AUTOMOTIVE MERGERS & ACQUISITIONS FIRM. WORK WITH 60+ OF OUR TOP INDUSTRY PROFESSIONALS. * Based on DSMA’s historical transaction data. Actual sales timelines may vary depending on market conditions, brand, location, and other factors. MIKE FUNK M&A Associate michael.funk@dsma.com 312.674.4556 JENNIFER RAFAEL Vice President, Partner jennifer.rafael@dsma.com 312.927.9561 JONATHON MORONI M&A Associate jonathon.moroni@dsma.com 312.674.4556 GREG BROWN M&A Associate greg.brown@dsma.com 312.674.4556 CHRIS HAWLEY M&A Associate chris.hawley@dsma.com 312.674.4556 KEVIN CHRIST M&A Associate kevin.christ@dsma.com 312.674.4556 ZACH HICKSON M&A Associate zach.hickson@dsma.com 312.674.4556 SHYNTHIA SILVA M&A Associate shynthia.silva@dsma.com 312.674.4556 NOLAN KLUG Bus. Dev. Manager nolan.klug@dsma.com 312.674.4556
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Payment Strategies for a Changing Auto Retail World By Lyubena Smith, CTP, Treasury Sales Manager; Carl Dix, Treasury Solutions Sales Consultant; and Andy Rankin, Head of Treasury Solutions Sales, Truist Dealer Services In the past couple of years, the auto retail business has shown remarkable adaptability, changing to meet new demands during the global pandemic. Not only have dealers addressed an array of challenges — inventory depletion, supply chain disruptions and a skilled labor shortage — while still having some of the most profitable years, but they’ve also responded to evolving consumer buying preferences. Today, 40% of Americans say they’re prepared to configure and purchase a car online, only visiting the dealership for a test drive.1 From sophisticated, tech-based marketing to digital documentation, dealers embrace digital transformation as they strive for efficiency to streamline the buying process. Equally important, savvy auto dealers are welcoming innovations for making and receiving payments. FASTER, EASIER AND MORE SECURE PAYMENTS Payment solutions have progressed to become faster, more secure and easier to execute. New options — from Zelle®, PayPal and Real Time Payments (RTP) to Same Day ACH — offer consumers and businesses faster ways to exchange funds. CATA UP TO SPEED 23
Traditional payment types are plagued with a high risk of fraud. By a wide margin, checks represent the No. 1 fraud risk among payment choices; 63% of respondents in a 2023 survey experienced attempted or actual check fraud at their organization.2 Newer payment methods are constantly upgraded to offer stronger security measures. Consumer demands for faster settlement and funds availability are spurring the shift to digital payments. The latest payment options reflect society’s broad desire for immediacy and younger purchasers’ expectations for simple, digital execution. FIND THE BEST WAY TO PAY To realize the advantages of new payment types, auto retailers often start with payables, exploring options to manage private-party, used car purchases; efficiently process customer refunds; handle marketing and advertising expenses; and pay contractors, suppliers and vendors. Processing a paper check creates additional steps for both parties and exposes them to a higher risk of fraud or loss. By moving away from checks, funds can be managed more efficiently, and the transaction can be completed more quickly. Over the coming years, dealers will need to continue to embrace consumers’ universal push for agility and immediacy. The pressure for the same instant fulfillment that customers experience at other kinds of businesses will extend to every aspect of the way auto retailers market, sell and close purchases. As buying becomes more digital, customers — accustomed to the Zelle and PayPal experience — will start to expect the same speedy movement of funds for an auto purchase that they see in other transactions in their daily lives. Yet buyers’ preferences are only one factor to consider in your approach to payments — speed of execution, fees and the risk of payment reversal are part of the equation as well. Payment options need to align with delivery and fulfillment and integrate with your documentation process. For now, merchant services remain the preferred means that auto retailers use to secure payment for deposits, in-person sales, and parts and services. As a familiar choice for customers, it can be implemented in both face-to-face and e-commerce settings. KEY BUSINESS PAYMENT OPTIONS Payment Type Payment Description Impact Real Time Payments Electronic payments through RTP member banks • Immediate, irrevocable settlement. • Low transaction cost. • Minimal incidence of fraud (0.1% of all RTP payments according to The Clearing House).3 Same Day ACH Electronic payments through any financial institution • Same business day settlement up to 2:00 p.m. • Low transaction cost. Purchasing and Virtual Cards Individual cards or virtual card numbers issued for one time or repetitive payments to OEMs, vendors and service providers • Same day settlement to seller. • Extends days of payables outstanding. • Lowers administrative costs. Checks Paper-based payments • Variable settlement. • High end-to-end cost. • High incidence of fraud — 63% of businesses have experienced check fraud.2 As you consider the best type of payment for each purpose, keep in mind that a bank like Truist can accept a single file with multiple payment types and then separate and direct each payment where it needs to go. That consolidated payments approach could simplify the time your finance and technology teams spend staging payments. 24 CATA UP TO SPEED
BUILDING A PAYMENTS STRATEGY The range and sophistication of payment options continue to evolve. Payments planning as you work toward creating a payments policy can help ensure your choices align with your business goals and provide the most efficient and cost-effective option for each type of payment you make. Developing a sound payments process starts with a careful assessment of all your incoming and outgoing payments, along with the business requirements behind each one. Examine each type of payment you make in terms of security, speed, cost and convenience involved in moving those funds. Questions you will want to consider include: • When should you remit payment based on terms and discounts? • Do you have a hierarchy of preferred payment options based on transaction cost and ability to mitigate fraud? For example, your preferred payment method may be virtual cards, followed by ACH and RTP. • Do you have segregation of duties where one person enters the payment and a second person approves the payment? A payments strategy can guide you in improving the use of your working capital as you hold onto funds longer before remitting payment, send payments the most cost-effective way, mitigate fraud risks and ensure proper payment authorization. As you begin to design your own payments strategy, refer to the business payments options outlined in the previous chart. 1. Digital Auto Report 2023 Volume 1 – Understanding Customer Preferences and Implications, PWC, 2023. https://www.strategyand.pwc.com/tr/tr/pdf/digitalauto-report-2023.pdf. 2. AFP 2023 Payments Fraud and Control Survey, Association for Financial Professionals, 2023. https://www.jpmorgan.com/content/dam/jpm/ commercial-banking/insights/cybersecurity/download-payments-fraud-Surveykey-highlights-ada.pdf. 3. John Adams, Real-time payments leave little time to spot fraud, American Banker, Oct. 23, 2023. Truist Bank, Member FDIC. ©2025 Truist Financial Corporation. Truist, the Truist logo and Truist Purple are service marks of Truist Financial Corporation. Equal Housing Lender. SPACE AVAILABLE Advertise in this magazine and reach your customers anywhere in the cosmos. CONTACT US TO GET STARTED! (801) 676-9722 • (855) 747-4003 sales@thenewslinkgroup.com QR Code: website /ad-space CATA UP TO SPEED 25
The CATA has been ramping up efforts to focus on more education and training opportunities for its members, in the form of seminars and webinars. In March, NADA wrapped two weeks of leadership training, held at the CATA offices in Oakbrook Terrace. The NADA Professional Series training is intended for auto dealership managers working in sales, parts, service or office. Ideal candidates are new to a management position within a dealership department, aspire to become a department manager or have accelerated growth opportunities. NADA hosts these training opportunities in only a few select locations across the nation each year. The CATA looks forward to welcoming NADA back on May 6-7 as they host a twoday leadership class. For more information and to register, visit www.nada.org. We encourage your feedback in addition to suggestions on topics for future seminars and webinars that would be of interest to our members. Please email Megan Plahm, communications project manager, at mplahm@drivechicago.com or call the CATA at (630) 495-2282. CATA Expanding Educational and Training Opportunities for Members 26 CATA UP TO SPEED
Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® Diana Zamudio, diana.zamudio@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. DFS-699-AD 6942528 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.
This magazine is designed and published by The newsLINK Group LLC | (855) 747-4003 18W200 Butterfield Rd., #096 Oakbrook Terrace, IL 60181 DEALER SERVICES Helping Write the Future of F&I We’re a performance improvement company helping to author the next evolution of the F&I business and are dedicated to helping build tailored solutions for your dealership. Our network of providers helps develop your F&I program – maximizing upfront sales and profits while providing a personalized customer ownership experience and creating wealth-building opportunities downstream. Who We Are Brown & Brown Dealer Services has access to a comprehensive line of transitional F&I protection products from A-rated and tenured carriers, with knowledgeable trainers that specialize in F&I to help you meet the unique needs of your business. How We Can Help We start with F&I and stay with you for your commercial insurance needs as well — garage keepers liability, open lot, cybersecurity, workers’ compensation, employee benefits and more. Our Continued Commitment 2023 Dealers’ Choice Awards – Diamond – F&I Training Top-Rated F&I Training Company 19 Years in a Row To learn more about how Brown & Brown Dealer Services can help deliver value to your dealership, contact Francis Fagan today. Francis Fagan Regional Training Director francis.fagan@bbrown.com (312) 608-4979 BBDealerServices.com | BBrown.com Brown & Brown of Kentucky, LLC
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