Vol. 36 № 4 A Publication of the Illinois Automobile Dealers Association Automobile Dealer News 2026 TIME Dealer of the Year Nominee RICK YEMM National Recognition for Community Service and Industry Accomplishments
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
CONCENTRATIONS Dealership Mergers & Acquisitions Dealership Franchise Law Business Litigation/Motor Vehicle Review Board Disputes Manufacturer/Franchisor Relations Business & Commercial Law Advertising Compliance Review Consumer Complaints Dealership Succession Add Points Real Estate Law Employment & Labor Law Federal & State Regulatory Compliance BACKGROUND Principal, Private Law Firm Former, IADA Legal Counsel Former, Illinois Assistant Attorney General, Deputy Chief, Consumer Protection Division Drafted Illinois Motor Vehicle Franchise Act Amendments Creating Motor Vehicle Review Board Drafted Illinois Motor Vehicle Advertising Regulations Julie A. Cardosi, Esq. 3040 Spring Mill Drive, Suite B Springfield, IL 62704 (217) 787-9782 jcardosi@autocounsel.com www.autocounsel.com Exclusive. Strategic. Results. Exclusively representing the unique business interests of automobile dealers for over 35 years.
CONTENTS Vol. 36 No. 4 2025 Officers Chairman Jamie Auffenberg/(618) 624-2277 St. Clair Auto Mall Auffenberg Auto Mall 1130 Auffenberg Ave., Shiloh, IL 62269 Vice Chairman Rick Curia/(815) 288-4455 Ken Nelson Auto Group 1100 N. Galena Ave., Dixon, IL 61021 Secretary/Treasurer Ryan Gremore/(309) 664-1222 O’Brien Auto Group 1601 Fort Jesse Rd., Normal, IL 61761 Executive Director Joe McMahon/(217) 753-0220 Illinois Automobile Dealers Association 300 W. Edwards St., Springfield, IL 62704 ©2025 The Illinois Automobile Dealers Association (IADA) | The newsLINK Group LLC. All rights reserved. Illinois Automobile Dealer News is published four times per year by The newsLINK Group LLC for IADA 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 IADA, 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. Illinois Automobile Dealer News is a collective work, and as such, some articles are submitted by authors who are independent of IADA. 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. Illinois Automobile Dealers Association 300 W. Edwards St. Springfield, IL 62704 T (217) 753-0220 / F (217) 753-3424 IllinoisDealers.com Scan here to check out our interactive website at illinoisdealers.com! 6 OUTGOING CHAIRMAN’S MESSAGE Driving Change Together By Jamie Auffenberg, Outgoing Chairman, IADA 8 COUNSELOR’S CORNER Your Dealership’s Best Defense The Employee Handbook Advantage By Julie Cardosi, Esq., Law Office of Julie A. Cardosi, P.C. 10 2026 TIME Dealer of the Year Nominee Rick Yemm National Recognition for Community Service and Industry Accomplishments 15 The Art of Selling in the Automotive Industry Mastering Solutions Through the Customer Interview By Tim Marbut, Ethos Group 18 Maximize Your Dealership’s Warranty Service Reimbursements By Truist Dealer Services, with special contribution from Jason Allen, Shareholder, Bass Sox Mercer, Attorneys at Law 21 Leadership in Times of Crisis 8 18 4 Illinois Automobile Dealer News
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?® Ryan Jordan, ryan.m.jordan@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.
Outgoing Chairman’s Message Driving Change Together JAMIE AUFFENBERG Outgoing Chairman, IADA Thank you for your support throughout my term as chairman. It has truly been an honor to serve, and an experience I will remember for years to come. Before passing the gavel, I want to take a moment to remind everyone that our association is only as strong as its members. Each of you plays a vital role in ensuring that IADA — and the future of our industry — remains strong and secure. I hope you will continue to support our many initiatives throughout the year and partner with us as we work to defend the Illinois dealership model. With the support of the IADA Legal Defense Fund, Illinois dealers successfully pushed back against Ford Motor Company’s burdensome Model e program. The proposed requirements would have forced dealers to invest millions in public EV charging infrastructure — accessible even during non-business hours — and to surrender key aspects of the sales and service process to Ford, effectively turning franchise dealers into delivery agents. The Illinois Ford dealers’ successful protest ultimately led Ford to abandon the Model e program nationwide. Likewise, with backing from the IADA Legal Defense Fund, Illinois Volkswagen and Audi dealers are now challenging Volkswagen’s attempt to impose improper warranty cost recovery surcharges. If Volkswagen and Audi are successful, this would impact all franchises. These are just two examples of how IADA has put its resources to work defending dealer rights under the Illinois Motor Vehicle Franchise Act. I also challenge each of you to reach out and encourage others to get involved — whether it’s a less active member who could benefit from stronger connections, or a fellow dealer who has yet to join IADA. Your outreach can open the door for them to see the many ways IADA positively impacts our members and the industry as a whole. With federal, state and local elections always on the horizon, it’s more important than ever that our voices — and our votes — are heard. We must help ensure that those elected are business-minded leaders who understand the value of our industry and the franchised system. Please also remember to support both IADA’s and NADA’s political action committees. We need a very successful fourth quarter to match last year’s performance in NADA PAC. As I’ve said on many occasions, becoming an NADA President’s Club member may be the cheapest insurance policy you will ever 6 Illinois Automobile Dealer News
buy, protecting the retail automotive business in D.C. It gives NADA staff access to the people we elect on the issues that are critical to our success. I strongly encourage every dealer to contribute at the highest level possible. And one final thought on engagement: It’s vital for dealers to build and maintain relationships with local lawmakers. Consider getting involved in grassroots efforts or inviting a legislator to visit your dealership to see your incredible team in action. Your IADA staff and board of directors work tirelessly to protect, promote and strengthen the franchised system and your dealerships every single day. We’re fortunate to have such a dedicated group representing us. Thank you again for the privilege of serving as your 2025 IADA chairman. With your continued partnership, IADA will remain the premier organization defending the Illinois dealership model. Sincerely, Jamie Auffenberg As I’ve said on many occasions, becoming an NADA President’s Club member may be the cheapest insurance policy you will ever buy, protecting the retail automotive business in D.C. It gives NADA staff access to the people we elect on the issues that are critical to our success. I strongly encourage every dealer to contribute at the highest level possible. 7 Illinois Automobile Dealer News
In the fast-paced world of the automotive industry, where potential legal pitfalls lurk behind every policy misstep and workplace misunderstanding, one humble document stands as a dealership company’s first line of defense: the employee handbook. Often overlooked or hastily assembled, a well-crafted handbook is more than just a collection of policies and rules — it is a strategic asset that protects your business and investments, empowers your workforce, and reinforces your company values. Employment law is a legal minefield for businesses. From wage and hour disputes to discrimination claims, businesses face a constant risk of liability. An employee handbook serves as a proactive shield in a litigious landscape by: • Documenting policies and procedures that demonstrate compliance with federal, state and local laws and regulations. • Establishing clear expectations around conduct, performance and discipline. • Providing evidence that employees were informed of company policies, which can be crucial in defending against wrongful termination or harassment claims and in other contexts, such as but not limited to employee misconduct, failure to follow compliance requirements, etc. Courts and federal and state administrative agencies tasked with adjudicating employment-related claims and labor disputes often look favorably on businesses that can show they have communicated policies consistently. A handbook is not just helpful — it can be the difference between prevailing and losing a legal challenge. JULIE CARDOSI, ESQ. Law Office of Julie A. Cardosi, P.C. Your Dealership’s Best Defense The Employee Handbook Advantage Counselor’s Corner “Good order is the foundation of all things.” — Edmund Burke Clarity afforded by the employee handbook also helps to prevent conflict. Miscommunication is the root of many workplace disputes. A handbook eliminates ambiguity by: • Outlining roles, responsibilities and reporting structures. • Defining procedures for grievances, leave requests and performance reviews. • Clarifying benefits, compensation and time-off policies. When employees know what to expect, they are more likely to trust corporate leadership. Consistency in administering company policies and benefits also builds credibility for employers. Inconsistent treatment of employees can lead to morale issues and legal problems. The employee handbook ensures: • Uniform enforcement of policies, reducing claims of favoritism or discrimination. • Standardized onboarding and training, which helps new hires integrate smoothly. • A reference point for managers, guiding fair and lawful decision-making. 8 Illinois Automobile Dealer News
Consistency is not only good business practice — it is also a cornerstone of legal defensibility. In addition to affording the company important legal protections, employee handbooks are powerful tools for shaping company culture. Handbooks also communicate: • Core company values and mission, aligning employees with the company’s vision. • Ethical standards, reinforcing integrity and accountability. • Legal policies memorializing operative state and federal requirements that apply to the dealership’s business to facilitate employees’ adherence to the company’s compliance obligations in the conduct of its business. Unfortunately, too many businesses treat employee handbooks as optional or outdated, or even “cookie-cutter.” There is, however, no one-size-fits-all. In today’s regulatory climate, carefully drafted employee handbooks that incorporate current legal policies and requirements are indispensable. A dealership handbook that does not accurately address an employer’s present policies and practices or the application of current law is a liability. Whether you are a large dealership group with multiple franchises at multiple locations or are a small, single-point dealership, investing in a clear, comprehensive and legally sound employee handbook, and updating your handbook to stay current with the ever-changing myriad of state and federal laws and regulations, is one of the smartest moves you can make. It is not just paperwork — it is protection. Julie A. Cardosi is Principal of the private firm, Law Office of Julie A. Cardosi, P.C., of Springfield, Illinois, and has been practicing law for nearly 40 years, exclusively representing the unique business interests of automobile dealers state-wide for over 30 years. Formerly in-house staff legal counsel for the Illinois Automobile Dealers Association, she concentrates her practice in the areas of dealership ownership transfers (asset purchases and stock acquisitions), mergers and acquisitions, franchise law and franchise issues, factory relations, corporate law, add points, commercial real estate transfers, employment and other issues impacting day-to-day dealership operations. She authored the original versions of IADA’s Employment Policies Manual and Job Description Manual. Dealers may wish to seek the advice of their own counsel on the subject matter of this article. 9 Illinois Automobile Dealer News
2026 TIME Dealer of the Year Nominee Rick Yemm National Recognition for Community Service and Industry Accomplishments 10 Illinois Automobile Dealer News
The nomination of Rick Yemm, dealer principal of Yemm Automotive, for the 2026 TIME Dealer of the Year award was announced on Oct. 16, 2025, by TIME. Yemm is one of a select group of 47 dealer nominees from across the country who will be honored at the 109th annual National Automobile Dealers Association (NADA) Show in Las Vegas, Nevada, on Feb. 5, 2026. The TIME Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted honors. The award recognizes the nation’s most successful auto dealers who also demonstrate a long-standing commitment to community service. Yemm was chosen to represent the Illinois Automobile Dealers Association in the national competition – one of only 47 auto dealers nominated for the 57th annual award from more than 20,000 nationwide. Rick Yemm leads Yemm Automotive, a third-generation, family-owned dealership group serving West Central Illinois with Chevrolet, Buick, GMC, Chrysler, Dodge, Jeep and Ram brands. Founded in 1961 as Weaver-Yemm Chevrolet, the business has grown under Yemm’s leadership from a single-point Chevrolet store to a multi-line campus operating in two adjacent facilities. “My path to becoming dealer principal began in 1961, when my father and his business partner purchased the Chevrolet dealership in Galesburg, Illinois — the same dealership where they had worked as salesmen and managers,” Yemm explained. Rick got his start in the detail department during his high school years and, after graduating from Illinois Wesleyan University, returned to work alongside his father, Dick. Over the years, he took on other roles, including used car manager and general manager. “In 1995,” he shares, “I was honored to step into the role of dealer principal and become a business partner with my father.” Major facility investments include opening a new Chevrolet Buick GMC building in 2017, as well as recent interior and exterior renovations to the Chrysler Dodge Jeep Ram building — all designed to elevate guest experience and modernize employee workspaces. Committed to exceptional hospitality, Yemm highlights, “Our mission begins with a deep commitment to the art of hospitality throughout every department. It all starts with cultivating a workplace culture that supports our employees, empowering them to thrive and grow.” He continues, “The greatest reward comes from reading the positive feedback our customers share — reviews that are circulated across the company to recognize and celebrate our team’s efforts. A great business plan means nothing without dedicated people behind it.” An engaged industry leader, Yemm has contributed to the Illinois Automobile Dealers Association as a board member and executive committee member, including serving as chairman in 2021. His involvement has supported statewide advocacy efforts aimed at protecting and strengthening the dealership business model. For more than 30 years, Rick has been actively involved in the local community, serving on many boards and contributing to various initiatives. He and his wife, Jamie, are strong advocates of the Galesburg Community Foundation. The Yemm family and their dealership also support numerous local events, from educational programs and charity walks to community fundraisers. “Yemm Automotive actively encourages our employees to get involved in volunteer efforts — we 11 Illinois Automobile Dealer News
believe it’s a vital part of building stronger communities,” Rick added. The Yemm team works closely with local schools to inspire and educate students about career paths in the automotive industry. For several years, the dealership has participated in an event hosted by Carl Sandburg College, where eighth-grade students explore career stations and engage with local employers and a panel of young professionals. At the high school level, the team regularly takes part in career fairs and trade shows. Now in its third year of partnership with the Galesburg Area Vocational Center, Yemm Automotive also welcomes students from the center’s automotive technology program for job shadowing and internship opportunities. For Yemm, the most meaningful milestone is a personal one. “Without a doubt, the most rewarding moment was when my daughter, Sara, expressed her desire to join the family business,” he shared. “Her commitment, along with the dedication of our outstanding team, has helped Yemm Automotive grow into a third-generation, family-owned dealership — something I’m incredibly proud of.” Dealers are nominated by the executives of state and metro dealer associations around the country. A panel of faculty members from the Tauber Institute for Global Operations at the University of Michigan will select one finalist from each of the four NADA regions and one national Dealer of the Year. Three finalists will receive $5,000 for their favorite charities, and the winner will receive $10,000 to give to charity, donated by Ally. In its 15th year as exclusive sponsor, Ally also will recognize dealer nominees and their community efforts by contributing $1,000 to each nominee’s 501(c)3 charity of choice. Nominees will be recognized on allydealerheroes.com, which highlights the philanthropic contributions and achievements of TIME Dealer of the Year nominees. “The TIME Dealer of the Year award honors automotive dealers who set the standard for excellence and community impact,” said Jessica Sibley, CEO of TIME. “Each year, we spotlight those whose dedication uplifts and inspires their communities. At TIME, we are proud to continue celebrating these extraordinary contributions in partnership with Ally.” Doug Timmerman, president of dealer financial services at Ally, said, “The TIME Dealer of the Year award honors those exceptional dealers who not only excel in their business endeavors but also demonstrate a profound commitment to uplifting their communities,” Timmerman said. “These nominees embody the spirit of leadership and service, making a lasting impact both in their dealerships and beyond.” Yemm was nominated for the TIME Dealer of the Year award by the Illinois Automobile Dealers Association. Rick and his wife, Jamie, have two children, Dr. Richard Yemm and Sara Yemm Witherell. ABOUT TIME TIME is the 102-year-old global media brand that reaches a combined audience of over 120 million around the world through its iconic magazine and digital platforms. With unparalleled access to the world’s most influential people, the trust of consumers and partners globally, and an unrivaled power to convene, TIME’s mission is to tell the essential stories of the people and ideas that shape and improve the world. Today, TIME also includes the Emmy Award®-winning film and television division TIME Studios; a significantly expanded live events business built on the powerful TIME100 and Person of the Year franchises and custom experiences; TIME for Kids, which provides trusted news with a focus on news literacy for kids and valuable resources for teachers and families; the award-winning branded content studio Red Border by TIME and more. ABOUT ALLY FINANCIAL Ally Financial Inc. (NYSE: ALLY) is a financial services company with the nation’s largest all-digital bank and an industry-leading auto financing business, driven by a mission to “Do It Right” and be a relentless ally for customers and communities. The company serves customers with deposits and securities brokerage, and investment advisory services, as well as auto financing and insurance offerings. The company also includes a seasoned corporate finance business that offers capital for equity sponsors and middle-market companies. For more information, please visit www.ally.com. For more information and disclosures about Ally, visit www.ally.com/#disclosures. For further images and news on Ally, please visit media.ally.com. ABOUT THE NADA SHOW The National Automobile Dealers Association (NADA), founded in 1917, represents more than 16,000 light-vehicle and commercial-truck dealerships with 32,500 domestic and international franchises. New-vehicle franchised dealers are directly responsible for more than one million U.S. jobs. 12 Illinois Automobile Dealer News
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. Your dealership doesn’t need a bank. You need a true partner. In today’s complex auto dealer industry, access to capital is only part of the picture. To get ahead and stay ahead, you need a strategic partner expertly versed in this industry. Highly resourced, and completely invested in you. That partner is Truist. Truist.com/DealerServices
The Art of Selling in the Automotive Industry Mastering Solutions Through the Customer Interview By Tim Marbut, Ethos Group In today’s competitive retail automobile marketplace, selling cars is no longer about persuasive talk or high-pressure tactics. The modern car buyer is well-informed, often walking into the dealership after hours of online research, equipped with comparisons, reviews and even price quotes. They don’t want to be “sold”; they want to be understood. The true art of selling cars today lies in providing real solutions, and the foundation of that lies in one of the most powerful yet underutilized tools in the salesperson’s process: the customer interview. From Pressure to Partnership: A New Sales Philosophy For years, auto sales had a reputation for being high-pressure, fast-talking and transactional. But that model is outdated and ineffective with today’s customers. Buyers 15 Illinois Automobile Dealer News
now want to work with someone who listens, understands their needs and helps them make a smart decision. The modern automotive salesperson is not a persuader but a consultant. Their job is not to “push a car” but to uncover what matters most to the customer, whether that’s safety for their family, fuel efficiency for a long commute, towing capacity for a boat or technology for convenience. Selling becomes a partnership, not a battle. The Customer Interview: The Heartbeat of Car Sales The most important part of any vehicle sale is not the walk-around or the negotiation. It’s the customer interview, the initial conversation that uncovers what the customer truly needs, wants and values in their next vehicle. A rushed or shallow interview leads to generic presentations and misplaced recommendations. But a thoughtful, well-executed customer interview opens the door to trust, relevance and ultimately, the sale. This interview isn’t a script; it’s a conversation. It requires genuine curiosity, patience, empathy and, most of all, active listening. The more insight the salesperson gathers, the more precise and impactful their presentation can be. Asking the Right Information-Gathering Questions The effectiveness of the customer interview depends on the questions asked. Great salespeople don’t just ask, “What brings you in today?” and stop there. They explore deeper to personalize the experience: • “What are you driving now, and what do you like or dislike about it?” • “Who else will be driving or riding in the vehicle?” • “Tell me about how you typically use your vehicle during the week.” • “Second to price, what’s the most important thing in your new car: safety, performance, appearance, comfort, economics, dependability or technology concerns?” • “What does the ideal vehicle look like for your lifestyle?” Each question peels back a layer. Instead of guessing or assuming, the salesperson uncovers exactly what matters to the customer. And more importantly, they show the customer that they care. Listening: The Ultimate Competitive Advantage Too often in automotive sales, salespeople ask questions only to jump into their pitch. True professionals know that listening, not talking, is what builds trust and rapport. When a customer feels heard, they begin to relax, share and engage more deeply in the process. As Zig Ziglar once said, “Selling is essentially a transference of feeling.” If the customer feels respected, valued and understood, they are far more likely to make a confident buying decision and to make it with you. Matching Vehicles to Needs, Not Quotas After the interview, the real magic begins; not in showing the most expensive vehicle on the lot, but in showing the right one. When you’ve taken the time to understand the customer’s situation, your presentation becomes personalized and purposeful. Instead of saying, “This is one of our most popular models,” you’re able to say, “Based on what you told me about needing space for your kids and weekend camping trips, this SUV has the third-row seating and off-road package that fits perfectly.” What you show is based on their individual need and value language. Car sales shouldn’t be about one-time wins; they should be about long-term relationships. 16 Illinois Automobile Dealer News
We invite you to join us today. Contact us at ElectrifyIL@Ameren.com to get started. Learn more about our ChargeSmart program at AmerenIllinois.com/ChargeSmart. Engage. Learn. Share. 1. Engage: Join our webinars and boost your EV sales expertise 2. Learn: You and your customers can use our EV calculator to compare gas versus kWh cost savings and more 3. Share: Our ChargeSmart Program can help Ameren customers earn a bill credit and charge for less— sign up is FREE Dealer Partner Network Benefits: • We help you get noticed by listing you on our AmerenIllinois.com/EV web pages • As a Dealer Partner, you get access to a special portal offering resources to help you educate EV customers. Enrollees earn a bill credit and charge for less costs— sign up is FREE An Exclusive Offer to Dealers Join our network of Auto Dealers and let’s transform the EV journey for customers together. The Ameren Illinois Dealer Partner Network is FREE to join and provides resources to help ease the minds of potential EV drivers. Now, you’re not selling; you’re solving. You’re helping the customer make a smart, informed decision based on their priorities. And in doing so, you remove objections before they even arise. Selling Without Pressure When a salesperson truly understands the customer and presents the right solution, pressure becomes unnecessary. The customer doesn't feel manipulated; they feel served. They move forward not because they were “closed,” but because they were confident in their decision. This approach transforms the customer experience. It builds loyalty, earns referrals and creates a reputation that draws others in. In a business built on relationships and reputation, that’s invaluable. Building Long-Term Success Car sales shouldn’t be about one-time wins; they should be about long-term relationships. A customer who feels genuinely listened to and helped is far more likely to return for their next vehicle, send in friends and family and leave positive reviews online. Pressure tactics may create short-term deals, but they rarely build a long-term business. A solution-based approach, rooted in a deep and honest customer interview, lays the groundwork for repeat success and lasting trust. Final Thoughts The art of selling cars in today’s market isn’t about being the loudest voice in the showroom or the fastest closer. It’s about being the most trusted guide. It’s about listening, understanding and matching the right solution to the right person at the right time. Every customer who walks into the dealership has a story. The great salesperson is the one who takes the time to hear it, understand it and respond with a solution, not a pitch. Master the customer interview, and you master the sale. In automobile selling, the most powerful engine isn’t under the hood; it’s in the conversation. For more information on how Ethos Group can help your dealership develop more leaders in your F&I office, sales management tower and your sales floor in 2025, please contact Chris Nesseth at cnesseth@ethosgroup.com or (319) 270-4779, or Austin Shane at ashane@ethosgroup.com or (319) 296-8760. 17 Illinois Automobile Dealer News
MAXIMIZE Your Dealership’s Warranty Service Reimbursements By Truist Dealer Services, with special contribution from Jason Allen, Shareholder, Bass Sox Mercer, Attorneys at Law Dealerships often rely on healthy margins from service departments to provide a consistent, reliable source of revenue. With a significant percentage of total service hours dedicated to warranty and related work, optimizing the pricing and processing of your warranty reimbursements can outsize your profits and dealership growth. Work That Only Dealers Can Do Today’s vehicles are more dependable, often experiencing fewer issues or failures requiring warranty repairs. Yet they present more opportunities for OEM-reimbursed service work beyond warranty fixes, including: • Model Recalls: Recalls apply to specific models of all ages, including vehicles beyond the warranty period. The National Highway Traffic Safety Administration (NHTSA) mandates recalls at the federal level and tracks repairs via a nationwide system. Each new recall triggers a wave of reimbursable service work on affected models. • Manufacturer Maintenance for New or Certified Pre-Owned Vehicles: Some manufacturers include prescribed maintenance as part of new or certified pre-owned (CPO) vehicle sales. This reimbursable maintenance work generates reliable revenue while fostering an ongoing relationship with customers. • Extended Warranties: Buyers can purchase extended warranty plans for new and qualified used vehicles, creating additional reimbursable warranty work. Non-OEM warranties issued by third parties offer further service opportunities, with reimbursement dictated by the contract terms. This body of service work opens the door to more revenue through reimbursements and customer engagement. As the exclusive source of manufacturer-certified technicians to fulfill warranty and recall work, dealers can strengthen relationships with current customers and attract new ones. Warranty work secures ongoing service and parts revenue and keeps your dealership top of mind when it’s time to trade and buy again. The Mechanics of Warranty Reimbursement Reimbursed service work provides a reliable source of steady revenue. With the right measures, it can become even more lucrative. Dealers who study warranty reimbursement details, refine workflow tracking and documentation to optimize warranty payments, and follow OEM program requirements can maximize rates and reimbursements, leading to increased service revenue. Maximizing warranty reimbursements depends on state laws, which dictate how retail rates for labor and parts are determined. Most states require manufacturers to reimburse dealers for warranty work at the same rates charged to retail customers. These laws are subject to change from time to time, necessitating that dealers keep 18 Illinois Automobile Dealer News
up with the latest legislation and adjust their strategies accordingly. There are subtle but meaningful details that determine the labor time standards used, the method for calculating retail rates and how retail parts costs are set. While state laws require OEMs to pay retail rates, it’s up to dealers to document and justify the rates they charge customers. For instance, dealers may be required to submit a sample of 100 recent service orders to establish an average hourly rate for retail customers. The manufacturer then uses this average retail rate to calculate reimbursement amounts. In the ongoing negotiation between dealers seeking fair reimbursement and OEMs aiming to control costs, be cautious of OEM offers that circumvent state-mandated legal protections. For example, offers to provide necessary warranty parts at no or reduced cost may allow manufacturers to skirt legal protections to reimburse parts at retail rates. 6 Best Practices to Maximize Warranty Reimbursements Follow these practical steps to help you get the most in warranty reimbursements: 1. Ensure that your reimbursement rate matches what you are currently charging the retail customer. Costs for labor, parts and equipment have risen sharply in recent years. Modern vehicles require specialized equipment and highly skilled technicians who command higher wages. If your OEM reimbursement rates rely on outdated data, you may be losing out on revenue. 2. Price service work consistently and with discipline. Applying discounts may seem like an effective way to build relationships and loyalty, but the goodwill you create for one customer may negatively affect your warranty reimbursement rates overall. Providing “friends and family” rates or discounting repair invoices can decrease the average hourly charge in your service sample, reducing the reimbursement rate for all warranty work. Updating your published rate consistently is one of the most effective ways to maximize reimbursement. 3. Maintain excellent service records. Pricing data drives reimbursement rates so that meticulous record-keeping can have an outsized impact on potential revenue. Ensure records accurately reflect customer concerns and include detailed descriptions of work performed. Misclassified service work, especially within the service work sample, can distort data and negatively affect reimbursement rates on all your warranty work. Additionally, configure your service workflow system to generate reports used to update retail rates as frequently as allowed by OEMs and state laws. 4. Ensure your service manager prioritizes warranty reimbursement. Your service manager should understand the complexities of warranty reimbursement and their impact on dealership profitability. Choose a program leader who’s keen to stay informed about state statutes and OEM reimbursement programs that maximize service revenue and your service absorption rate. 5. Revisit your reimbursement rate often. Most states require that manufacturers permit dealers to request annual rate adjustments for warranty reimbursements. While the process can be time-consuming, the financial benefits make it worthwhile. Even small adjustments can significantly boost service revenue, given the volume of warranty work. Even if you don’t request a reimbursement rate adjustment, assess your pricing structure annually. Ensure that the rate you receive from the manufacturer aligns with market conditions and reflects increasing labor costs. Today’s skilled technicians earn considerably more than they did just a few years ago, and your reimbursement rate should account for these rising expenses. 6. Be wary of manufacturer consumer price index (CPI) programs. OEM-offered, CPI-based multi-year programs may seem like a convenient way to secure annual rate increases. However, these programs base increases on changes to the national CPI — not the amounts you charge customers — and typically cap increases to less than 5%. While convenient, dealers that opt for these programs may forfeit their right to request more substantial rate adjustments allowed by law. Special thanks to Jason Allen, shareholder at Bass Sox Mercer, Attorneys at Law. Bass Sox Mercer is a dealer franchise law firm representing automobile, truck and motorcycle dealers in complex commercial transactions, business and franchise disputes, operational issues and litigation. The firm specializes in dealer rights, including warranty reimbursement matters. Contact Jason Allen at jallen@bsm-law.com or (850) 878-6404. Truist Bank. Member FDIC. 19 Illinois Automobile Dealer News
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Leadership in Times of Crisis A crisis within an organization can happen at any time, whether it be a new piece of legislation that turns the industry on its head, a pandemic that brings society to its knees or something in between. Effective leadership during a crisis can significantly influence the eventual outcomes for your team and organization. It goes without saying that when faced with a crisis, normal routines are disrupted. If a company is not prepared, policy and procedures often go out the window, leading to confusion and a breakdown of communication lines. Even the best employees can become reactionary, making decisions based on what they think is best to solve the problem that is happening in front of them. Additionally, a crisis can cause a far-reaching domino effect of challenges. For example, if a supplier within a supply chain is disrupted, retailers in turn may not be able to meet customer demands, leading to poor customer satisfaction. And with today’s tech-savvy consumers, bad news can spread fast. We all know how a few poor online reviews can affect the financial bottom line. As a leader, the way you handle a crisis sets the tone for the entire team, good or bad. If you are prepared for the unexpected, it can significantly reduce any fear and anxiety that your employees might be feeling. There are real benefits to being proactive and having a “just-in-case” backup plan ready to roll out at a moment's notice. Proactive leadership involves meticulous planning and preparation. It allows an organization, in the event of a crisis, to move from plan A to plan B and implement the necessary changes smoothly. And the good news is that you don’t have to make these plans alone. Involving the management team — and employees when appropriate — helps to foster a sense of commitment and plan ownership within your organization. By not having a crisis management plan in place, employees can and most likely will lose trust in leadership. Believe it or not, leading by influence on a day-to-day basis can help a company’s upper management prepare for a crisis. This type of leadership guides and inspires others through actions, words and ideas as opposed to solely relying on title, 21 Illinois Automobile Dealer News
Effective leadership during a crisis can significantly influence the eventual outcomes for your team and organization. authority or position. It involves skills like active listening, setting a good example and building strong working relationships with the team. Attention to and development of these skills is absolutely vital. The idea that a leader will be forged in a crisis — that they will rise to the occasion with skills previously unseen — is simply unrealistic. But if you have the skills that keep you involved and show a true interest in employee well-being, and you are consistent in your behavior, you’re more likely to conduct yourself in the same way during a crisis. Taking a proactive and strategic approach to crisis management involves a number of core elements: • Identification: Conduct risk assessments to help identify potential crises before they occur. • Planning: Develop plans and procedures that specifically address various scenarios, including resource allocation and communication protocols. • Communication: Establish strong lines of communication. Without clear, transparent communication, no plan, no matter how good, will work. It’s been said that communication makes the world go round, and to that point, in a crisis, effective communication is vital to making it through difficult times successfully. Communication can make the difference between your business weathering the storm or suffering operational and/or reputational damage. • Response: Assign roles and responsibilities to implement your plan in the case of a crisis. This may involve taking immediate action to protect your people and property, as well as informing stakeholders. Leaders should be open to new approaches and willing to adjust strategies as the situation evolves. • Recovery: Assess your plan once normal operations are restored. What parts worked? What can be done better? Take this opportunity to learn and improve preparedness plans. However, it’s important to remember that even the best plan can fail if people are not prioritized, both employees and leaders alike. Strong leadership in action can help employees understand that a crisis does not have to lead to the destruction of the organization or the loss of their jobs. In fact, the ability of those in charge to be agile and make decisions may give employees hope as they realize that their leaders were prepared for the event and competent enough to get them through it safely. Equally as important is self-care, especially during times of crisis. Leaders should take time to eat healthy and make sleep a priority. When possible, try to find a moment to step back from the situation, refocus and find perspective. And, don’t try to do it all yourself. After all, you’ve spent time planning and preparing your team — give your plan and your employees the chance to make things work. Crises are bound to happen, but with a little planning and a lot of teamwork, you can successfully navigate the storm instead of bracing for impact. ADVERTISE HERE! RESERVE YOUR SPOT TODAY! 801 676 9722 sales@thenewslinkgroup.com RESEARCH SHOWS: • The average ROI for print advertising is around 130%. – Electro IQ • 56% of consumers trust print marketing more than any other advertising method. – AllBusiness.com • Print media has a 90% brand recall rate, the highest among all advertising channels. – Sonder & Tell Don’t just take our word for it! PRINT ADVERTISING isvital for success. 22 Illinois Automobile Dealer News
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Illinois Automobile Dealers Association 300 W. Edwards St. Springfield, Illinois 62704 This magazine is designed and published by The newsLINK Group LLC | (855) 747-4003 BROWN & BROWN Overview Brown & Brown Dealer Services (BBDS) is an F&I performance company aimed at helping to build tailored solutions for today’s vehicle retailer. The complexities inherent to the F&I business demand a white glove approach with the flexibility to satisfy a variety of brands or markets. The BBDS network of providers helps ensure the proper F&I program is developed and executed to help maximize upfront sales and profits, provide a top-tier customer ownership experience and create wealth-building opportunities downstream. How We Can Help Our BBDS team is comprised of experienced and knowledgeable F&I specialists that have worked with dealers for decades. They are equipped with access to the industry’s top product providers, a top-rated training and development program and commercial insurance products to help you find solutions to fit your business needs. F&I Products • Flexibility to help fit your needs • Access to A-rated providers • Two in-house administration companies • Wealth-building opportunities on products Training Solutions • F&I Management Certification School • Learning Management Systems (LMS) delivering online training • Monthly webinars and video training archive • Ethics & Compliance Certification Participation Programs • Program selection based on your goals and objectives. NCFC, CFC, Retro or DOWC • Nationally recognized team that specializes in evaluating and configuring personalized solutions • No obligation evaluation of your current program Property & Casualty • More markets for your risks mean more choices to help meet your individual business and personal needs • Knowledgeable professionals to help identify your unique risks and find solutions to help protect your assets Employee Benefits • • Health Collective Purchasing Arrangement that includes a dedicated service representative to help you with premium savings, national and regional coverage and to DEALER SERVICES The Broker for the Dealer Custom F&I Programs That Help Deliver Results and Profits Brown & Brown Dealer Services 263 Shuman Blvd. • Naperville, IL 60653 | bbrown.com | (847) 612-9361
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