The IADA-CVR Partnership A Cornerstone of Dealer Efficiency and Advocacy ILLINOIS AUTOMOBILE DEALER NEWS Vol. 37 Issue 1
CERTIFIED PUBLIC ACCOUNTANTS CONTACT US TODAY to learn how we can help your dealership THRIVE. 1707 Clearwater Avenue, P.O. Box 1584 Bloomington, IL 61702 woodwardassoc@cpaauto.com • www.cpaauto.com • (309) 662-8797 Serving more than 300 Automobile Dealers throughout the United States Driving Tax & Accounting Excellence in the Automotive Industry EXPERT CPA SERVICES TAILORED FOR YOUR DEALERSHIP’S ROAD TO SUCCESS Tax Preparation & Management Services, Dealership Valuations & Appraisals, Estate & Trust Planning and Succession Planning, Dealership Profitability & Management, Dealership Operations Consulting, and so much more!
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. 37 No. 1 2026 Officers CHAIRMAN Rick Curia (815) 288-4455 Ken Nelson Auto Group 1100 N. Galena Ave., Dixon, IL 61021 VICE CHAIRMAN Ryan Gremore (309) 664-1222 O’Brien Auto Group 1601 Fort Jesse Rd., Normal, IL 61761 SECRETARY/TREASURER Bob Federico (618) 254-1000 Federico Chrysler Dodge Jeep Ram 1875 E. Edwardsville Rd., Wood River, IL 62095 EXECUTIVE DIRECTOR Joe McMahon (217) 753-0220 Illinois Automobile Dealers Association 300 W. Edwards St., Springfield, IL 62704 ©2026 The Illinois Automobile Dealers Association (IADA) | Memberlink Solutions DBA 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! 16 10 12 EXECUTIVE DIRECTOR’S MESSAGE 6 Powered by Partnership By Joe McMahon, Executive Director, IADA 8 The IADA-CVR Partnership A Cornerstone of Dealer Efficiency and Advocacy 10 Get Customers on the Road Faster With CVR By CVR 12 Avoid the Pitfalls of Vehicle Title Processing Backlog By John Alviggi, Director of Implementation and Client Operations, CVR 14 DMV Fee Accuracy Saves Time and Money By Greg James, Senior Director of Sales, CVR COUNSELOR’S CORNER 16 AI‑Driven Dealership Retailing 2026 What Illinois Auto Dealers Should Know By Julie Cardosi, Esq., Law Office of Julie A. Cardosi, P.C. 18 Five Questions to Ask Before Choosing a Transportation Partner By Central Dispatch 20 Why Valuations Matter The Key to Confident, Strategic Dealership Moves By Kostia Pho, Bilingual Marketing Coordinator & Copywriter, DSMA 22 Economists Expect Another Strong Year for Auto Retail By Truist Dealer Services 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.
n this edition of Illinois Automobile Dealer News, we’re pleased to feature valuable insights from one of IADA’s long-standing partners, CVR. As we often emphasize, IADA does not merely “endorse” CVR — we are an integral part of the process. Our dedicated staff works directly on your customer applications, processing and auditing all paperwork while managing inventory to ensure accuracy and compliance. When dealers partner with CVR through IADA, the resulting revenue provides a critical funding source that enables IADA to advocate on your behalf — defending the franchise system for Illinois dealers at both the legislative and legal levels. Thanks to this partnership, in 2026, IADA will once again advance legislation to further strengthen the Illinois Motor Vehicle Franchise Act as we continually address emerging challenges posed by vehicle manufacturers. Direct Sales Legislation will explicitly prohibit manufacturers from bypassing franchised dealers through newly created subsidiaries or entities commonly controlled by the manufacturer. It will also prevent OEMs from spinning off affiliates or brands that sell vehicles directly to consumers, thereby ensuring the continued survival of the franchised dealer model. Warranty & Recall Repair IADA plans to introduce legislation to strengthen Illinois law governing manufacturer warranty and recall repairs. This proposal will simplify the warranty submission process by clarifying the exclusion of routine maintenance operations that drag down warranty reimbursement rates. The proposal also reinforces the position of franchised dealers as the primary authorized providers of warranty and recall repairs. Documentation Fee IADA will also pursue legislation to increase the allowable documentation fee on vehicle transactions. Currently, two or three doc fees cover more than the full-year membership for IADA. We hope our diligent efforts on your behalf continue to earn both your membership and, just as importantly, your partnership in our Association programs. As always, we sincerely appreciate your ongoing support of the Illinois Automobile Dealers Association. Our strength and success are, and will always be, a direct reflection of the commitment and engagement of our dealer members. EXECUTIVE DIRECTOR’S MESSAGE Partnership Joe McMahon Executive Director, IADA Powered by “Our strength and success are, and will always be, a direct reflection of the commitment and engagement of our dealer members. I 6 ILLINOIS AUTOMOBILE DEALER NEWS
The IADA-CVR Partnership A Cornerstone of Dealer Efficiency and Advocacy or Illinois auto dealers, streamlining operations and improving customer satisfaction are essential in an increasingly competitive marketplace. One partnership that has proven instrumental in achieving both goals is the long-standing relationship between the Illinois Auto Dealers Association (IADA) and CVR (Computerized Vehicle Registration). What began as a program to simplify title and registration processes has grown into a cornerstone of dealer efficiency and advocacy in the state. CVR is a technology-driven solution that provides dealerships with fast, secure electronic titling and registration services. Dealers using CVR can drastically reduce the time and effort required to complete SOS-related transactions, which have historically been a pain point in the car-buying process. CVR’s platform enables dealerships to access real-time SOS data, automate tax, title and registration forms, and eliminate redundant paperwork — ultimately helping dealers deliver a seamless experience for their customers. But CVR’s value to Illinois dealers goes well beyond operational convenience. Through its partnership with IADA, CVR empowers the association to defend dealer interests across legislative and legal arenas. As IADA leadership has emphasized: “The CVR program is a critical funding source that enables IADA to fight for Illinois dealers, defending the franchise system at both the legislative and legal levels. No other vendor can offer the level of infrastructure, experience, and dealer-focused service we’ve built over the past 25 years. Our entire IADA staff works on this process for you.” This support helps IADA maintain a robust presence in Springfield and beyond, advocating for policies that keep regulatory burdens manageable, fees fair and dealer operations smooth. The association’s mission — to protect franchised dealers and promote a healthy retail automotive industry — is strengthened by the consistent resources generated through the CVR program, allowing IADA to be effective in both proactive policy shaping and reactive legal defense. For Illinois dealers, the practical benefits of CVR are clear and immediate. Instead of sending customers to the Secretary of State’s office or dealing with paper titles and manual data entry, dealers can complete registrations and titles electronically, often while the customer waits. With CVR’s certified integration into major dealer management systems (DMS), data flows automatically from the sale to the state system — reducing human errors and speeding up turnaround times. F 8 ILLINOIS AUTOMOBILE DEALER NEWS
This efficiency translates into better customer experiences. Customers value convenience, and the ability to drive off the lot with fully completed registration and title removes a major obstacle from the selling process. Dealers reap the rewards through improved customer satisfaction scores, stronger retention and the positive word of mouth that follows a smooth transaction. The partnership also extends to support and education. CVR offers dealer training and compliance guidance to help dealerships stay ahead of evolving state requirements — another way we add value beyond basic transaction processing. In Illinois, where regulatory nuances can change with little notice, having access to expert guidance helps dealers remain compliant and minimize costly mistakes. Another key component of the CVR offering is its ability to handle complex registration scenarios, including out-of-state title and registration. CVR offers multiple options for 50-state processing through integrations with services like Automotive Titling Corporation (ATC) and Executive Tag & Title Services Inc. This means dealers can process transactions accurately across all 50 states, expanding their operational capabilities and reducing friction in interstate transactions. Yet the benefits of the CVR program for IADA members aren’t only technological. By underwriting part of IADA’s advocacy efforts, CVR helps ensure that the dealer voice is heard on issues that matter — from franchise law protection to regulatory reform. That legislative strength ultimately leads to a healthier business environment for dealerships across Illinois. In essence, the alliance between IADA and CVR creates a win-win dynamic: Dealers receive cutting-edge solutions that streamline everyday tasks while supporting an association that fights for their long-term interests. The result is a more efficient, customer-centric retail experience and a stronger industry presence at the state level — both of which contribute to the ongoing success of Illinois auto dealers. Scan the QR Code for audio. illinois-auto-dealer-news.thenewslinkgroup.org/ the-iada-cvr-partnership/ 9 ILLINOIS AUTOMOBILE DEALER NEWS
Vehicle titling and registration are complex and can be daunting, with regulations that vary from state to state. It’s challenging to keep up with the changes, let alone implement them correctly, and many dealers aren’t sure who to trust to solve their compliance problems. The current piecemeal solutions in the market leave many compliance gaps for dealers to fall through. The industry needs a unified full-spectrum solution that everyone can count on to keep them connected and protected. The Solution: CVR’s 360-Degree Protection CVR is, simply put, an electronic title and registration platform that connects dealerships directly to state DMV systems. CVR submits deals and paperwork electronically where applicable, transfers funds securely, and enables customers to drive away with fully registered vehicles the same day they buy them. CVR combines smart technology with expert guidance to ensure speed, accuracy and compliance. Get Customers on the Road How CVR Works CVR integrates directly with a dealership’s DMS, so all customer and vehicle information transfers automatically. It then validates it against state-specific requirements and submits titles and registration electronically. When you complete a vehicle sale, CVR: • Pulls customer and vehicle information directly from your DMS — no retyping or manual forms • Validates against your state’s specific requirements in real time • Submits the title and registration electronically to the DMV • Transfers funds electronically, eliminating the need for checks • Supports 16 states (17 including AVRS - CA) with constantly updated rules and forms Real-World Problems CVR Solves for Dealers SAME-DAY REGISTRATION Customers no longer have to wait for mailed documents, use temporary tags or even step foot in the DMV. They leave the dealership fully registered and ready to drive, which increases their satisfaction with the sale and encourages repeat business. NO MORE MAILING MISTAKES Paper forms can get lost, delayed or rejected for minor errors. With CVR, everything is submitted electronically, and if an issue arises, CVR alerts dealers immediately so they can make corrections before it becomes a problem. FEWER DATA ENTRY ERRORS Errors in manual data entry are a common cause of DMV rejections. CVR pulls VINs, names and addresses directly from the DMS, eliminating mistakes and the headaches that follow. INSTANT FUNDS TRANSFER No more waiting for checks to clear. Dealerships can move money electronically and securely, saving hours of administrative work every week. UP-TO-DATE COMPLIANCE Regulations, fees and forms change constantly. CVR updates automatically to reflect the latest state requirements, keeping dealerships compliant without extra effort. By CVR FASTER With CVR
The Team Behind CVR For over 30 years, CVR has simplified the complex world of vehicle titling and registration. Processing 15 million transactions a year for over 10,000 customers, CVR combines technical expertise with decades of hands-on experience. The CVR team comes from the industries it serves. They’ve been where dealers are and understand the needs and requirements of their business. CVR ensures dealerships stay compliant while delivering a seamless buying experience. A Partnership for the Long Term CVR builds rich, long-term relationships with customers nationwide, challenging the team to continually push the technology to deliver better connections and more accurate outcomes. Dealers can feel confident that they’re in good hands with CVR as their partner. From the accuracy and track record of CVR’s solutions to the support available when problems arise, CVR empowers dealers with the knowledge and tools they need to protect themselves today and into the future. Improve Your Vehicle Buying Process With CVR Ultimately, dealers, states and customers need more than just an automated software tool. They need people-oriented solutions that are not only compliant with the latest state regulations but will also protect them down the road and deliver peace of mind. Because everyone deserves better vehicle-buying experiences. Let CVR handle the complexity of registration and compliance, so you can focus on moving inventory and serving customers. Contact CVR today to see how we can help you streamline your process, reduce errors and get your customers on the road faster. Scan the QR Code for audio. illinois-auto-dealer-news. thenewslinkgroup.org/get-customerson-the-road-faster-with-cvr/ 11 ILLINOIS AUTOMOBILE DEALER NEWS
ost people assume the costliest mistakes in dealership and vehicle processing operations come from mispricing vehicles or trade-ins, but often, the biggest losses stem from inefficiency. Vehicle title processing delays, for instance, create hidden costs that ripple across operations, from paperwork piles and manual errors to compliance concerns. These bottlenecks have slowed down title and registration workflows for decades, delaying customer satisfaction and tying up capital in idle inventory. This ineffectiveness is an industrywide challenge, affecting everyone in the ecosystem — new and pre-owned car and truck dealerships, auctions, DMVs, salvage companies and financial institutions, to name just a few. And most have no idea how large their backlog is because inefficiency doesn’t live in just one area of the process; it’s built into nearly every step. What Causes Backlogs in Vehicle Title Processing The traditional vehicle title transfer process is slow and outdated. Manual paperwork and broken digital workflows create friction points at every turn. Manual titling alone takes anywhere from two weeks to two months or more, leaving vehicles stuck on the lot instead of generating revenue. Meanwhile, modern digital solutions can compress that same process to just a few days. Outdated payment methods make matters worse. Many organizations still rely on paper checks, which must be signed and then mailed. Typically, only one or two people within the organization have signing authority, and it’s rarely that person who sends the check. Plus, checks rely on a mail service for transit, which can get lost or cause. And since checks aren’t immediate payments, they can slow down month-end or quarter-end closing. Why These Bottlenecks Cost You More Than Just Time Delays open the door to costly mistakes. Slow title acquisition means that unknown liens, duplicates or errors often go unnoticed until late in the process, creating liability and lost revenue opportunities. Manual or unintegrated digital processes also often require rekeying information multiple times, increasing the likelihood of errors. When these mistakes occur repeatedly or directly affect customers, they damage both profits and reputation. Ironically, many teams stick with manual processes or physical checks out of an abundance of caution to ensure control and accuracy, but those choices often create the very problems they’re trying to prevent. When vehicle titles are delayed — due to mailing errors, inaccurate information or disjointed systems — inventory turnaround slows dramatically. Dealers can’t resell or transfer vehicles, leading to idle stock and lost profit. Meanwhile, customers who must wait for dealers to process their trade-ins, whether they’re unable to move forward with their purchase or are forced to wait in long lines at the DMV, may lose patience. In an era when satisfaction drives repeat business and online reviews, delays can have lasting consequences. AVOID THE PITFALLS M of Vehicle Title PROCESSING BACKLOG By John Alviggi, Director of Implementation and Client Operations, CVR 12 ILLINOIS AUTOMOBILE DEALER NEWS
WHAT PEOPLE ARE SAYING ABOUT CVR TRUSTED INTEGRATED INVESTED CVR leads the way in simplifying the complex world of vehicle titling and registration. We understand the ever-evolving regulatory landscape of state-by-state compliance and and its unique challenges. We empower our partners with intelligent, full-spectrum solutions that make car buying easier, safer and more seamless for everyone. years of industry leadership* 30+ million transactions processed annually* 15 states with operations (AVRS in California)* 17 million total vehicles registered in Illinois in 2024** 11.3 customers and operations* 10,000+ CVR BY THE NUMBERS Sources: *CVR Data, **www.ilsos.gov Abby Greenhagel, Assistant Office Manager Hopkins Ford of Elgin | Elgin, IL When the Secretary of State returns paperwork and we need help with corrections, CVR has been extremely helpful. They keep me posted on the new changes and walk me through any issues or errors.” Aracelli Ulloa, Title Clerk Mike Anderson Chevy | Chicago, IL In 2020, we left CVR and went with a competitor — big mistake on our part. We returned to CVR and we’re much happier.” ©2025 CVR. All Rights Reserved. 25-86400 CVRCONNECT.COM Endorsed by For more information, contact our IL Area Representative Joe Rappold at 815.212.0937 or joe.rappold@cvrconnect.com What You Should Look for in an Electronic Title Processing System The industry is evolving fast, demanding speed, efficiency and security. You need a streamlined, end-to-end title and registration solution that digitizes processes, automates compliance and integrates directly with DMVs. These modern solutions can accelerate transaction times, reduce errors, avoid costly penalties and improve the customer experience. But not all digital tools deliver that process, and many simply replicate outdated manual workflows in a digital format. The right solution should: • Identify, prevent or at least minimize mistakes by preventing users from selecting or entering the wrong information before it becomes a problem. • Track each title’s progress with time stamps of each action and easily accessible copies of paperwork. • Capture additional notes for unique information about a specific deal or title to ensure nothing gets lost or confused in the process. • Integrate with DMS systems to eliminate rekeying information or duplication. By adopting modern digital titling technology, dealerships, DMVs, auctions and financial institutions — any business where titling and registration play a role — can transform a long-standing operational drain into a competitive advantage, accelerating inventory turnover, reducing compliance risks and creating a seamless customer experience that builds loyalty and drives repeat business. Get more information on the CVR vehicle registration solution at www.cvrconnect.com. John Alviggi is the director of implementation and client operations for CVR. With over 30 years of experience in the electronic vehicle registration and tilting industry, John leads state management and field operations, where his teams streamline installations and deliver a comprehensive, high-quality training experience for end users. Scan the QR Code for audio. illinois-auto-dealer-news.thenewslinkgroup.org/ avoid-the-pitfalls-of-vehicle-title-processing-backlog/ 13 ILLINOIS AUTOMOBILE DEALER NEWS
ees associated with the DMV, from registration and plates to taxes, are already line items most car buyers overlook until it comes time to sign the final paperwork. That’s often the first time they see numbers beyond the vehicle’s negotiated price. The last thing dealers or their customers want is to somehow get those fees wrong and learn about it well after the car has left the lot. What Are Vehicle Registration Fees? DMV vehicle registration fees are collected by the dealership to cover the cost of registering a vehicle with the state’s Department of Motor Vehicles. These fees typically include title transfer, license plate issuance and other state-mandated registration costs. Depending on the state, calculating these title and registration fees can be quite complex. If a dealer calculates these fees in a DMS without a system like CVR, they’ll need to rekey the data into the DMV’s system or rely on fees generated by the DMS — both of which are estimates and can lead to errors and inaccuracies. With inefficient processes like these, eight different data points or 10 different fees must be manually reentered into the DMS. In some instances (and some states), companies like CVR make it much easier, literally. Type the two letters “EZ” into your CVR-integrated DMS, and all the fees are calculated automatically and pushed back into the deal. That’s why the tool is called EasyFEE. EasyFEE and other DMS-integrated fee calculators aren’t available in every state, but they do help illustrate what’s possible. And CDK DMS users can stay in the CDK system throughout the entire process because the DMV fee process is embedded. Why Error-Free DMV Fee Calculation Is Critical The worst-case scenario for fee errors would be the need to correct fees with a customer after they’ve already signed on the dotted line and driven their car home. Imagine calling a customer to explain that they owe you more money because of an error on your part. It’s not hard to imagine a situation like this leading to lower customer satisfaction scores and damaging the likelihood of repeat business and referrals. A dealer can decide to absorb the costs to avoid impacting the customer, but that results in a clear financial hit to the store. An error in the customer’s favor isn’t likely to have the same negative reputational impact, but it won’t instill confidence in your finance team either. Simply cutting a check and mailing it has its own costs, and the dealership is responsible for tracking the refunded amount (if it remains uncashed) for up to three years. Time and F Money By Greg James, Senior Director of Sales, CVR DMV Fee Accuracy Saves 14 ILLINOIS AUTOMOBILE DEALER NEWS
CVR IL CONNECT BETTER THAN EVER UPGRADED FEATURES SAVE TIME, AVOID MISTAKES AND GENERATE REVENUE IF YOU HAVEN’T SEEN CVR IL CONNECT LATELY, DON’T MISS OUT ON: Direct Connection to the State of Illinois Expedite processing and prevent mistakes. Faster Processing Speed up the process with integrated DMS access and single sign-on Error Reduction Eliminate manual rekeying Security First Advanced data protection at every step Competitive Advantage Best-in-class rates and a better customer experience For more information, contact our IL Area Representative Joe Rappold at 815.212.0937 or joe.rappold@cvrconnect.com Endorsed by Dealerships trust CVR for their customer vehicle registration. + 10,000 ©2025 CVR. All Rights Reserved. 25-86400 CVRCONNECT.COM Source: CVR And that’s just the impact on the customer; there’s also the possibility of leaving money on the table. If the fee calculations result in a higher price for the customer, they’ll be less likely to spend on other F&I products. It all affects the final monthly payment, and erroneously higher fees will push that payment higher than it should be, affecting the customer’s budget for the purchase. The advantages of using CVR to calculate and execute fees are clear. As an industry leader for over 30 years, CVR handles over 15 million transactions and DMV inquiries annually. Learn more about the benefits of CVR at www.cvrconnect.com. Greg James is the senior director of sales for CVR, where he leads nationwide sales strategy and CA field operations for electronic vehicle registration solutions. With over 15 years of experience in automotive and regulated industries, Greg specializes in helping dealerships streamline compliance and improve customer satisfaction. Scan the QR Code for audio. illinois-auto-dealer-news.thenewslinkgroup.org/ dmv-fee-accuracy-saves-time-and-money/ 15 ILLINOIS AUTOMOBILE DEALER NEWS
Julie Cardosi, Esq. Law Office of Julie A. Cardosi, P.C. Artificial intelligence (AI) has moved from a futuristic concept to a daily operational tool in automotive retail. Dealerships now rely on AI to automate follow‑up, personalize online shopping, optimize inventory and streamline service scheduling. But in Illinois, the rapid adoption of AI intersects with one of the most aggressive state regulatory frameworks in the country. As of Jan. 1, 2026, new legal requirements affect how dealerships can use AI in employment‑related decisions — and many retail tools overlap with those rules. For Illinois dealers, the challenge is clear: embrace AI’s advantages while staying compliant. This article breaks down how dealerships are using AI in 2026 and what Illinois law requires as these tools are integrated into dealership operations. How Dealerships Are Using AI in 2026 AI is now embedded in nearly every stage of the dealership experience. The most common applications include: Lead Scoring and Routing: AI evaluates customer behavior, online activity and engagement to prioritize leads. Automated Follow‑Up: Chatbots and CRM automations respond instantly to inquiries and maintain consistent communication. Personalized Digital Retailing: AI tailors vehicle recommendations, payment options and incentives based on customer profiles. Inventory Optimization: Predictive analytics help dealers stock the right vehicles at the right time. Service‑Department Efficiency: AI forecasts repair needs, improves scheduling and boosts retention. These tools help dealerships operate more efficiently and deliver a smoother customer experience. But they also raise legal questions when AI influences employment decisions or interacts with sensitive consumer data. Illinois’ New AI Rules: What Changed in 2026 The Illinois Human Rights Act was amended to regulate how employers use AI in hiring, promotion and other employment‑related decisions. These rules apply to all Illinois employers, including auto dealerships, and took effect Jan. 1, 2026. NOTICE REQUIREMENTS Dealerships must notify job applicants and employees when AI is used “to influence or facilitate” decisions such as hiring, promotion, scheduling or discipline. This includes tools that screen résumés, score applicants, or recommend which employees receive additional training or hours. PROHIBITION ON DISCRIMINATORY AI USE Illinois prohibits the use of AI systems that result in discrimination based on protected characteristics — and uniquely, zip code. Because zip code can correlate with race, income and other protected traits, Illinois treats it as a potential proxy for discrimination. BROAD SCOPE OF COVERAGE The law applies to: • Recruitment • Hiring and Termination • Promotion • Training • Scheduling • Discipline If AI influences any of these decisions, the dealership must comply with the new requirements. COUNSELOR’S CORNER What Illinois Auto Dealers Should Know AI‑Driven Dealership Retailing 2026 16 ILLINOIS AUTOMOBILE DEALER NEWS
INTERACTION WITH FEDERAL POLICY A recent federal Executive Order directs agencies to reexamine how AI contributes to disparate‑impact discrimination. This creates a dual‑layer compliance environment: Illinois rules and evolving federal enforcement priorities. Where AI Retail Tools Create Legal Risk Many AI tools used for sales or customer service can unintentionally cross into regulated territory. LEAD SCORING AND ROUTING If AI deprioritizes leads based on demographic proxies — such as income, neighborhood or language patterns — it may create discriminatory outcomes. Even if the tool is intended for marketing, it can still raise legal concerns. CHATBOTS AND VIRTUAL ASSISTANTS Chatbots that answer employment‑related questions, screen applicants or route job inquiries differently based on AI‑detected traits may violate Illinois’ notice and nondiscrimination requirements. PREDICTIVE SCHEDULING TOOLS AI that recommends which employees should receive more hours, training, or advancement opportunities is directly covered by the new Illinois law. F&I AUTOMATION AI‑driven payment calculators or product recommendations must avoid unfair or deceptive practices. Proper disclosures and transparency are essential to avoid consumer‑protection legal issues. How Some Dealerships Are Responding Forward‑thinking dealerships are not waiting for enforcement actions. They are proactively adapting their operations to align with Illinois’ new rules by: • Conducting AI impact assessments and reviewing all AI tools — CRM systems, ATS platforms, chatbots, scheduling software — to determine whether they influence employment decisions, create disparate outcomes or necessitate proper disclosures. • Implementing AI‑use notices and preparing standardized disclosures for applicants and employees. • Vetting vendors for compliance and demanding contractual assurances that AI vendors comply with Illinois law, provide transparency and allow audits of automated decision‑making processes. • Maintaining human oversight, making the final call on hiring, promotion and discipline. This “human‑in‑the‑loop” approach reduces legal exposure. • Training managers to understand AI’s limitations, recognize potential bias and document human review of AI‑generated recommendations. Conclusion AI‑driven retailing offers enormous potential for Illinois auto dealerships — from improved customer experiences to more efficient operations. But with new state regulations in effect, and out-of-state laws and regulations that are potentially impactful (e.g., California), dealers must adopt AI responsibly. Those who combine innovation with compliance will be best positioned to thrive in 2026 and beyond. Julie A. Cardosi is Principal of the private firm, Law Office of Julie A. Cardosi, P.C., in Springfield, Illinois, and has been practicing law for nearly 40 years, exclusively representing the unique business interests of automobile dealers statewide 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. Dealers may wish to seek the advice of their own counsel on the subject matter of this article. “If AI deprioritizes leads based on demographic proxies — such as income, neighborhood or language patterns — it may create discriminatory outcomes. 17 ILLINOIS AUTOMOBILE DEALER NEWS
iring a vehicle transport company can feel overwhelming. Between comparing quotes, navigating terms and trying to verify credentials, there are a lot of important considerations and not a lot of time. To help shippers like you partner with more confidence and success, we’ve broken down the decision process into five simple questions. Whether it’s your first shipment or your hundredth, asking yourself these questions as you browse potential carrier partners can make the difference between a smooth experience and a costly mistake. 1. Are They Properly Licensed and Insured? This is arguably the most important question to ask. A legitimate vehicle transport company must be registered with the Federal Motor Carrier Safety Administration (FMCSA) and should have a valid DOT (Department of Transportation) number. Proper insurance is also essential in case your vehicle is damaged during transit. Transportation marketplaces like Central Dispatch often have verification of these numbers for each carrier readily available on the platform for quick confirmation, but these aren’t always up to date. You should also verify their DOT and MC (motor carrier) numbers with the FMCSA’s public search tool. 2. What’s Included in Their Pricing? It’s helpful to get clarity up front on what’s included in a company’s quote. Some companies may offer an attractive low rate initially, but then tack on additional fees for fuel, expedited delivery or insurance coverage later in the process. Be sure to ask for a detailed, itemized quote and clarify what services are (and aren’t) included in the price, specifically insurance, fuel surcharges, rescheduling fees, etc. And be on the lookout for quotes that are significantly lower than others, as this could be a bait-and-switch tactic or a sign of double brokering. 3. Can They Provide References or Reviews? Ask potential partners for recent customer references or reviews to get an impartial look at others’ experiences working with them. You could also seek out reviews from Google, Yelp or the Better Business Bureau. Marketplaces like Central Dispatch may also have reviews directly on the platform tied to each company or transaction. Be on the lookout for fake reviews with generic language or a lack of detail, or a large number of reviews posted within a short timeframe, as these may not be genuine. 4. How Do They Handle Scheduling and Delays? Delays in vehicle shipping can occur due to weather, traffic or scheduling conflicts. What matters most is how the company communicates and manages those delays. It’s helpful to ask what a company’s scheduling process is and how it handles and communicates any potential issues. A professional carrier should provide a clear estimated pickup and delivery window, communicate updates if something changes, and have contingency plans in place for unforeseen issues. Marketplaces like Central Dispatch may also offer real-time tracking and delivery ETAs on the platform, saving both shippers and carriers time through reduced back-and-forth communication. 5. How Will They Protect My Vehicle? Your vehicle is one of your most valuable assets, so make sure any transportation partner has a plan to protect it. You’ll want to ask about pre- and post-shipment inspection protocols, how damage claims are handled, and whether the vehicle is covered or exposed during transport. You can never be too careful or too prepared for issues that may arise. Conclusion Finding a new vehicle transportation partner doesn’t have to be daunting, as long as you know what to ask. Look for communicative, transparent partners who are invested in a partnership and seamless transportation process. And be sure to take advantage of all the different verification tools that marketplaces like Central Dispatch provide. These are often the best and easiest ways to get a clear idea of each carrier’s work history, performance and preferences — helping you not just find vetted partners, but partners that are the right fit for your move. Five Questions to Ask Before Choosing a Transportation Partner By Central Dispatch H 18 ILLINOIS AUTOMOBILE DEALER NEWS
Vehicle transportation is now a must-have for dealers everywhere. We think safe vehicle transportation should be too. With robust security features and our dedicated Marketplace Integrity Team, Central Dispatch has everything you need to move vehicles with more confidence. Nissan of Fort Myers Central Dispatch helps you stay safe and master every move. See how you can make every move safer at CentralDispatch.com/MasterEveryMove Mike Spinazze
In the fast-paced and ever-evolving world of automotive mergers and acquisitions (M&A), one thing is certain: valuations matter. Whether you’re considering selling, expanding, planning for succession or even just assessing where you stand in the market, a valuation isn’t just a financial tool; it’s the foundation of strategic decision-making. In a market where timing is everything, having a clear understanding of your dealership’s true value is essential. For Dealer Solutions Mergers & Acquisitions (DSMA), a leading automotive M&A firm in North America with more than 2,500 completed valuations, valuations go beyond simple calculation; they’re negotiation tools that provide clarity and leverage. As Jennifer Rafael, executive vice president and partner, Midwest, at DSMA, puts it: “A valuation is about your market value, what your asset is worth in today’s market, but most importantly, it is about creating a decision-making tool for the dealer.” Valuations give clients the knowledge and perspective they need to make critical business decisions based on facts, not assumptions or market rumors. Valuations in the automotive space also go far beyond surface-level financials. As Ivy Lu, CPA and manager of deal advisory and valuations, explains: “A business valuation determines the company’s economic worth to establish a fair value for purposes such as sales, merger, taxation, investment and succession planning.” But it also provides key insights into your operational competitiveness, from brand mix to financial structure, floor plan interest and expense management. One of the most critical aspects of automotive valuations is that no two dealerships are the same. Each one has its own set of market conditions, financial performance and operational intricacies. Whether it’s analyzing off-book earnings, floor plan insufficiencies, inventory write-downs or brand premiums and discounts due to market shifts, DSMA’s team ensures that all industry-specific variables are accounted for to produce an accurate, relevant valuation. Building on this, it is also important to note that the valuation process can be rigorous and transparent, and a DSMA valuation is always built on industry expertise and real-world data. The process starts with collecting years of detailed financial data, followed by a thorough analysis that includes everything from normalized earnings to market trends and brand performance. And once the valuation is complete, they make sure you understand it — context, explanation and all. Valuations remove emotion from major financial decisions. In an industry as competitive and dynamic as automotive, it’s easy for emotions and personal attachments to cloud judgment. A proper valuation doesn’t lie to you; it tells you exactly where your business stands in the market. For sellers, this means pricing your business realistically. For buyers, it means understanding risk and return. And for both parties, a well-executed valuation makes negotiations more transparent and grounded in facts, not assumptions. When a valuation comes in higher or lower than expected, it’s about aligning expectations and taking the right next steps. If the valuation is lower than expected, Ivy stresses, “The seller needs to reset their expectation, given the valuation represents what the market indicates the final value of the business, particularly in the post-COVID period, with the market gradually correcting itself.” But, as Jennifer points out, even if the valuation is higher than expected, there’s still a need for caution: “I explain what’s driving the premium and caution against assuming every buyer will pay top-of-market without the right structure or timing.” A valuation is also a powerful tool for identifying hidden value within your business. By digging deeper into a dealership’s financial statements, analyzing things like add-backs, expense structures and brand performance, DSMA helps their clients uncover areas of profitability that they might not have considered. Small adjustments can lead to significant improvements in value, and a well-done valuation highlights those opportunities. Finally, understanding your dealership’s value also matters in terms of market timing. Jennifer stresses, “The best time for a valuation is when the client has options, not urgency.” When you have options, you can make proactive, strategic decisions, not rushed ones driven by external pressures. So why do valuations matter? Because they give you the knowledge and clarity to act decisively in a fast-moving, ever-changing market. Whether you’re looking to sell, expand or optimize your operations, a valuation is more than just a tool; it’s your roadmap for success. Know your value, take control of your future, and let data drive your decisions. Start the conversation with DSMA by visiting dsma.com or by reaching out at info@dsma.com, and unlock the full potential of your dealership today! WHY VALUATIONS MATTER The Key to Confident, Strategic Dealership Moves By Kostia Pho Bilingual Marketing Coordinator & Copywriter, DSMA 20 ILLINOIS AUTOMOBILE DEALER NEWS
For more information, or to learn more about our 100+ opportunities, visit DSMA.com. OUR MIDWEST TEAM MIKE FUNK Regional Director michael.funk@dsma.com 312.674.4556 JENNIFER RAFAEL Executive V.P. & 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 Regional Director chris.hawley@dsma.com 312.674.4556 SHINTHYA SILVA M&A Associate shinthya.silva@dsma.com 312.674.4556 NOLAN KLUG Bus. Dev. Manager nolan.klug@dsma.com 312.674.4556 SCAN THE QR CODE TO REQUEST A BUSINESS VALUATION. FRANK DEGRADI M&A Associate frank.degradi@dsma.com 312.674.4556 THE FUTURE IS UNPREDICTABLE. YOUR STRATEGY SHOULDN’T BE. DSMA IS THE #1 GLOBAL AUTOMOTIVE MERGERS & ACQUISITIONS FIRM AND HAS COMPLETED 2,500+ VALUATIONS. STOP GUESSING WHAT THE MARKET WILL DO. START KNOWING WHAT YOUR DEALERSHIP IS WORTH.
Economists Mike Skordeles, Head of U.S. Economics at Truist Advisory Services Inc., and Mark Strand, Deputy Chief Economist at Cox Automotive Inc., along with Jason W. Smith, Head of Truist Dealer Commercial Services, share their views on emerging economic trends and the year ahead for automotive retailers. 2025 turned out to be a solid year for auto retailers, with profitability steady even as Q1’s strong sales softened over the balance of the year. 2026 looks to be more of the same, supported by an uptick in overall economic growth predicted for the year. Vehicle affordability is a risk dealers will be watching throughout the year. According to Mike Skordeles, head of U.S. economics at Truist Advisory Services Inc., “The overall economy has been muddling through 2025, but we see indications for an uptick in growth fueled by four big factors: changes to tax policy, marginally lower borrowing costs, and more stability on the trade policy and tariff front, along with continued investment in AI and technology spending.” Mark Strand, deputy chief economist at Cox Automotive Inc., elaborated, “2026 may look a lot like 2025, but with lower credit delinquencies and improving credit scores. I’m predicting moderate growth fueled by stimulative provisions from the One Big Beautiful Bill (OBBB) and AI buildout. Targeted tax relief and larger tax refunds should take some pressure off lower and middle-income households and reduce credit strain. Some re-shoring of investment would boost employment. But if inflation remains elevated and an obstacle for lower and middle-income consumers looking to make a vehicle purchase, then the top-earning households may not have enough spending to overcome the drag and lift the economy.” “Along with the federal fiscal situation, I’m watching the bond market.” Strand continued. “There’s a voracious global demand for capital — for AI, robotics, European rearmament and fiscal deficits — that’s keeping long-term rates elevated. Despite the Federal Reserve (Fed) rate cuts, longer-term mortgage and auto loan rates haven’t fallen as much as the Fed would like, and we still haven’t seen all the tariff pass-through. If inflation accelerates, that could force the Fed to pause or reverse rate cuts and create headwinds for vehicle affordability.” It’s a Bifurcated, Two-Speed Economy “We have near record-low consumer sentiment at a time when GDP is growing, and equities are at an all-time high. That tells us the benefits are not being distributed evenly. It’s a bifurcated consumer market, and there is real stress on lower and middle-income households,” says Strand. Skordeles added, “It’s often labeled as a K-shaped economy, but that doesn’t accurately describe the dynamic we’re seeing. K-shape suggests that spending is going down for a segment of consumers — that’s not what we are seeing.” Economists Expect Another Strong Year for Auto Retail Skordeles continued, “I’ve been describing the economy as ‘two-speed.’ At the top end, spending is robust; these consumers are buying, especially autos. For median earners and below, spending is still happening, but shoppers are being more selective. Value is paramount, and they’re more deliberate about their purchases.” Strand added, “Consumers aren’t happy about what they’re getting for their money, whether that’s at the grocery store or the auto dealer. Want-to-be home buyers feel prices are out of reach. Current homeowners are pressured by rising insurance, utilities and upkeep costs. All those factors are driving consumer sentiment south.” Expect a Smaller, More Profitable Automotive Market “Wages are once again growing faster than inflation,” Skordeles said, “which supports real incomes and should help consumers as we move through 2026.” Still, the total cost of vehicle ownership — vehicle prices and loan payments, along with insurance and maintenance costs — has outrun wages over the cycle. The result is a smaller new market than we saw before the pandemic. Strand expanded, “The auto market is driven by $100K+ households. Everything has changed for consumers earning below that, including subprime buyers. Compared to 2019, we’ve lost roughly 10% of the buying pool due to credit issues, access and affordability. We see elevated delinquencies and repossessions concentrated in subprime, though not at 2008-2009 crisis levels. Many are reprioritizing and may choose to stay in an older vehicle versus buying a newer one, which contributes to the gap.” For the dealer, the smaller new car market hasn’t diminished returns. “Overall profitability is almost two times what it was pre-pandemic,” Strand explained. “Dealers are finding revenue from parts, from the service lane and from selling F&I. As consumers have adjusted to the idea that they get less for their money and are staying in older vehicles with higher mileage, they’re buying the tire plan, extended warranties and some insurance add-ons. The dealer wins on all of those.” Disciplined, Tech-Savvy Dealers Can Expect Another Strong Year Jason W. Smith, head of Truist Dealer Commercial Services, states, “In the capital-intensive auto retail sector, By Truist Dealer Services 22 ILLINOIS AUTOMOBILE DEALER NEWS
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