The Power of Intentionality in Dealership Management Proactive Execution vs. Reactive Firefighting ILLINOIS AUTOMOBILE DEALER NEWS Vol. 37 Issue 2
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. 2 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) | MBR Connect™, formerly The newsLINK Group LLC. All rights reserved. Illinois Automobile Dealer News is published four times per year 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 (801) 676-9722. 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! 14 10 22 CHAIRMAN’S MESSAGE 6 Your Engagement Matters By Rick Curia, Chairman, IADA 8 The Power of Intentionality in Dealership Management Proactive Execution vs. Reactive Firefighting By Tim Marbut, Sales/Management Training Director, Ethos Group 10 The Hidden Cost: Outdated Payments Infrastructure in Modern Dealerships By Julie Douglas, CEO & Founder, Dealer Pay COUNSELOR’S CORNER 14 A Heightened Federal and State Enforcement Environment Illinois Auto Dealers Must Strengthen Advertising Practices Now By Julie Cardosi, Esq., Law Office of Julie A. Cardosi, P.C. 16 The Rules for Scaling Your Dealer Group From Rooftop to Empire By DSMA 19 Hazardous Waste Disposal Rules Dealerships Can’t Afford to Ignore By Zach Pucillo, EHS Compliance Manager, KPA 22 Manage Your Reputation With Smart Hiring Practices By Federated Insurance 4 ILLINOIS AUTOMOBILE DEALER NEWS
As we move through 2026, I want to take a moment to thank each of you for the trust you’ve placed in me to serve as chairman of the Illinois Automobile Dealers Association. It is truly an honor to represent such a dedicated and resilient group of professionals, and I am grateful for the opportunity to advocate on your behalf. Our Association is strongest when our members are engaged and supportive of the programs and partnerships that help protect and advance our industry. Initiatives like our work with CVR, Ethos Group and others continue to deliver real value to dealerships across Illinois — helping to improve operational efficiency, drive revenue opportunities and reduce risk in an increasingly complex business environment. Your participation in and support of these programs provide a critical funding source that enables us to fight for Illinois dealers, defending the franchise system through legislative advocacy and legal action. Equally important is your involvement in grassroots advocacy. The relationships we build with our legislators play a critical role in shaping the policies that affect our dealerships every day. Taking the time to engage with your elected officials — whether through local meetings, events or direct outreach — helps ensure that the voice of Illinois dealers is heard clearly and consistently. When IADA emails you about legislative advocacy campaigns, take a moment to send the prepared messages to your legislators. If you aren’t reaching out to your representatives, they’re likely listening to someone else on the other side of the issue. I also encourage you to keep your IADA membership current and active. Your membership is more than a commitment; it is an investment in the strength and future of our dealership industry. It enables us to provide the resources, representation and leadership needed to navigate ongoing challenges and opportunities. Lastly, we continue to work closely with CVR, Champ Titles and the Illinois Secretary of State’s office to modernize and improve the title and registration process. These efforts focus on increasing efficiency, reducing errors, and ultimately making transactions smoother for both dealers and customers. Thank you again for your continued support, engagement and the privilege of serving as your chairman. Together, we will continue to strengthen our IADA and ensure a successful future for Illinois automobile dealers. CHAIRMAN’S MESSAGE Your Engagement Matters Rick Curia Chairman, IADA 6 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. 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.
The Power of Intentionality in Dealership Management In the car dealership world, management is often defined by speed: fast decisions, fast reactions and fast answers. The environment is dynamic. Customers walk in unexpectedly, inventory changes daily, lenders adjust programs and market conditions shift without warning. As a result, many dealership managers fall into a familiar pattern: They build a plan, then spend the rest of the month reacting to whatever happens on the showroom floor. Effective dealership management, however, is not about reacting better. It is about managing with intentionality. The most successful stores are not the ones with the best ideas or even the best plans — they are the ones whose managers execute the plan daily, proactively and with purpose. Reactive Management on the Showroom Floor Reactive management is common in dealerships because urgency is constant. A slow Saturday turns into a sales meeting. A bad CSI survey triggers a policy change. A missed month-end objective leads to pressure-filled conversations and short-term incentives, and the latest 20 Group meeting attended can turn everything upside down. On the surface, this feels like engagement. In reality, it often signals a lack of intentional execution. Reactive managers spend their days responding to symptoms instead of addressing root causes. When traffic is down, they push harder. When gross is light, they discount. When performance dips, they motivate through pressure rather than preparation. The result is inconsistency for customers and for the sales team. In a reactive dealership, expectations change depending on the day or the numbers. Salespeople wait for direction instead of taking initiative. Managers chase yesterday’s results instead of influencing tomorrow’s behaviors. Over time, the culture becomes defensive. The team focuses on avoiding mistakes rather than mastering the process. Proactive Management: Running the Store on Purpose Intentional dealership management starts with a plan, but it does not stop there. Proactive managers understand that plans only work when they are executed daily on the floor, in the manager’s office and in the training room. Intentional managers ask: • What behaviors create sold units, strong grosses and high CSIs? • Are we managing the process or reacting to the scoreboard? • What should we coach today to prevent problems next week? Instead of waiting for numbers to slip, proactive managers inspect leading indicators such as appointment show rates, test drives, trade appraisals, menu presentations and follow-up activity. They coach in real time, during the deal, not after it blows up. Proactive management is not about micromanagement. It is about clarity and consistency. When salespeople know exactly what the process is and see it reinforced every day, confidence grows. Performance becomes repeatable rather than accidental. Execution Is the Real Work of Dealership Management Many dealership leaders enjoy planning meetings, sales contests and month-end strategies. But the real work of management happens in execution, on a Tuesday afternoon when traffic is slow or during the first pencil on a deal that might fall apart. Intentional managers execute by: • Holding consistent morning meetings that reinforce expectations • Coaching behaviors, not just outcomes • Reviewing deals with purpose, not emotion • Following up on commitments made by both managers and salespeople By Tim Marbut Sales/Management Training Director, Ethos Group Proactive Execution vs. Reactive Firefighting 8 ILLINOIS AUTOMOBILE DEALER NEWS
Reactive managers often change the plan when results lag. Intentional managers change behavior first. They understand that units sold, gross profit and CSI are lagging indicators. What matters most is how well the team executes the process that produces those results. Culture Is Shaped by Management Style In a dealership, management style quickly becomes culture. Proactive management builds accountability without fear. Salespeople feel supported, not hunted. They understand that coaching is about growth, not punishment. Reactive management creates anxiety. Salespeople brace for correction rather than seek guidance. Managers feel overworked, and turnover increases because the environment feels unpredictable. Intentional management builds trust. When leadership executes the plan consistently, regardless of how the month is going, the team buys in. They stop waiting for direction and start taking ownership of their performance. From Firefighting to Purposeful Leadership Car dealerships do not struggle because they lack talent or ideas. They struggle when management confuses reaction with leadership. The best operators reduce chaos not by working harder, but by working earlier — anticipating issues, reinforcing processes and executing intentionally every day. Management in a dealership is not about reacting to the month. It is about running the store on purpose. Proactive management turns plans into performance, while reactive management lets performance dictate the plan. In automotive retail, the difference between the two is the difference between surviving the business and mastering it. For more information on how Ethos Group can help your dealership develop more leaders in your F&I office, sales management tower and sales floor in 2026, please contact Chris Nesseth at cnesseth@ethosgroup.com or (319) 270-4779 or contact Austin Shane at ashane@ethosgroup.com or (319) 296-8760. 9 ILLINOIS AUTOMOBILE DEALER NEWS
Outdated Payments Infrastructure in Modern Dealerships By Julie Douglas, CEO & Founder, Dealer Pay 10 ILLINOIS AUTOMOBILE DEALER NEWS
Everything connects in today’s dealership until money moves. Over the past decade, dealerships have invested heavily in modernization. CRM platforms integrate with DMS. Service scheduling aligns with customer communication. Reporting tools provide deeper visibility. Departments that once operated in silos now operate within connected systems. Connection is no longer optional; it is expected. At the same time, the financial weight inside the dealership has shifted. According to NADA, fixed ops now represent roughly half of total dealership gross profit at many rooftops. And with the average vehicle age on U.S. roads exceeding 12 years, as reported by S&P Global Mobility, service demand continues to anchor long-term stability. Service is not a secondary contributor. It is a structural pillar. Yet in the middle of this modernization, most dealerships did not intentionally redesign the layer that carries every dollar across the business. The Money Layer That Was Never Revisited In most stores, payment systems appear to function without issue. Transactions process. Funds settle. Statements reconcile. Nothing signals failure, so nothing triggers leadership review. Historically, payments were treated as a transactional necessity that processed cards and produced reports. They were not evaluated as part of the dealership’s operating architecture. But today’s dealership is built around ecosystems. Sales, service, accounting, reporting and payables are expected to share visibility and support one another. Efficiency is measured across departments, not within them. If the financial layer that moves revenue into and out of those departments was never intentionally aligned with the broader ecosystem, the system remains incomplete, even if everything appears integrated on the surface. That omission may not have been intentional, but it shouldn’t go unaddressed. Why This Matters Now The dealership of 10 years ago could tolerate fragmented financial layers because volume, systems and expectations were different. Today, leaders demand predictability, clean reporting, scalable processes and operational efficiency. As fixed ops carry a greater share of the profitability burden, clarity around how money flows becomes even more important. When money in and money out operate through disconnected structures, visibility fragments. Reconciliation requires additional oversight. Reporting confidence depends on adjustment rather than design. Administrative effort absorbs time that should be spent on driving performance. But the pressure is not limited to efficiency. Compliance requirements continue to evolve. Fraud risk is more sophisticated. Chargebacks, data security expectations and regulatory exposure are not static. When protection depends primarily on people noticing issues rather than systems preventing them, risk increases quietly. 11 ILLINOIS AUTOMOBILE DEALER NEWS
Modern dealerships do not rely on human memory to manage inventory. They do not rely on instinct to calculate retention metrics. They build systems that reliably perform those functions. The same principle applies to financial infrastructure. If security, compliance monitoring, fraud protection and reporting safeguards are not intentionally designed into the system moving money, employees become the safety net. Human safety nets are inherently inconsistent. These are not operational failures; they are structural gaps, and structural gaps compound under pressure. Why Fixed Ops Feels It First Fixed ops operate at transaction density. Customer payments, parts sales, warranty reimbursements, refunds, chargebacks and vendor payables create constant financial movement. In that environment, the design of financial infrastructure directly influences efficiency and customer experience. A checkout process that lacks seamless alignment slows advisor flow and creates friction at the counter. A reconciliation process that requires layered oversight reduces accounting capacity. A reporting structure that pulls from multiple disconnected sources weakens clarity, and when payment processes feel inconsistent or delayed, customer confidence can quietly erode. Infrastructure is felt long before it is questioned. Efficiency in service is not only about technician hours or labor rates. It is about whether the systems supporting the department were designed to work together, including the system that moves money. When that system was never intentionally built into the ecosystem, performance relies more on effort than on design. Leadership eventually pays for that difference. “In an environment where margins continue to tighten, compliance grows more complex and service performance carries increasing weight, leaving the system that moves every dollar unexamined may be the most expensive oversight of all. How to Evaluate It in Your Store This is not abstract. It is observable. Leadership can ask: • Do we have a single, unified view of money moving in and out of the dealership? • How many systems must be accessed to trace a transaction from customer payment to final reconciliation? • How much manual oversight exists between service checkout and month-end reporting? • Are refunds, warranty credits and payables visible within the same financial structure as incoming revenue? • Are compliance safeguards and fraud protection embedded into the system itself, or dependent on employee intervention? If the answers involve multiple systems, manual adjustments, departmental handoffs or reliance on individuals to catch issues, then payments are operating adjacent to the ecosystem, not within it. That distinction matters. The Leadership Conversation Dealerships do not have a payments problem. They have an inherited assumption that if transactions are clearing, the system is aligned. That assumption made sense in a simpler operating model. It deserves to be re-examined in a more complex one. The real payments decision is not about equipment or rates. It is whether the financial layer of your dealership should function seamlessly within the ecosystem you have built. If it doesn’t, modernization stopped one layer short. In an environment where margins continue to tighten, compliance grows more complex and service performance carries increasing weight, leaving the system that moves every dollar unexamined may be the most expensive oversight of all. Want to learn more? Schedule a demo at dealer-pay.com/request-a-demo. 12 ILLINOIS AUTOMOBILE DEALER NEWS
Truist Bank, Member FDIC and Equal Housing Lender. © 2025 Truist Financial Corporation. TRUIST, the Truist logo and Truist Purple are service marks of Truist Financial Corporation. All rights reserved. The auto retail industry is more complex than ever. We’re here to help you make the right turns. From adopting AI to navigating economic uncertainty, auto dealers today face unique challenges. Truist Dealer Services knows this industry inside and out—and more importantly, we’re invested in knowing you. Truist.com/DealerServices
Julie Cardosi, Esq. Law Office of Julie A. Cardosi, P.C. The Federal Trade Commission’s (“FTC”) recent decision to issue warning letters to 97 dealership groups across the country in the 1st quarter 2026 marks a significant escalation in the agency’s scrutiny of automotive advertising practices. For Illinois dealers, the implications are especially important. Not only does Section 5 of the FTC Act1 prohibit unfair or deceptive acts or practices, but Illinois dealers must also comply with Section 2 of the Illinois Consumer Fraud and Deceptive Business Practices Act (“ICFA”)2, which imposes its own broad prohibitions on misleading advertising, along with the Illinois Motor Vehicle Advertising Regulations3 promulgated under the ICFA. Together, COUNSELOR’S CORNER A Heightened Federal and State Enforcement Environment Illinois Auto Dealers Must Strengthen Advertising Practices Now these laws create an integrated regulatory framework that demands careful attention to how vehicle prices, fees, add-on products, and terms are presented to consumers. The FTC’s letters focused on advertising practices that were alleged to create misleading impressions about vehicle prices, availability, financing terms, and add on products. In many cases, the agency identified advertisements that promoted prices consumers could not actually obtain because mandatory fees or dealer installed items were added later in the transaction. The FTC also criticized disclosures that were unclear, buried in fine print, or contradicted by more prominent statements. The FTC letters serve as a 14 ILLINOIS AUTOMOBILE DEALER NEWS
formal warning that the agency expects immediate corrective action and will not hesitate to pursue enforcement if the same practices continue. Illinois dealers face even greater exposure because the Illinois Consumer Fraud Act is interpreted broadly and applies to any advertising practice that could confuse or mislead a reasonable consumer. Illinois regulators and courts have long taken the position that an advertised price must reflect the actual price a consumer can pay, without hidden or undisclosed mandatory charges. This expectation is reinforced by the impact of the FTC’s action on an Illinois specific requirement. Whereas before the FTC’s action, the Illinois statutory documentary service fee4 could be excluded from the advertised price provided it was clearly and conspicuously disclosed in the advertisement, this is no longer permitted. With the FTC’s recent enforcement posture, the documentary service fee must also be included in the total advertised price. Additionally, the Illinois electronic registration and title fee (“ERT fee”) must also be included in the total advertised price. A dealer cannot advertise a vehicle at one price and then add the doc fee or the ERT fee later; the advertised price must be the full, total, all in price, with only government fees — taxes, title, and license — excluded. In practical terms, Illinois dealers should ensure that every advertisement — whether on their website, a third-party listing platform, social media, email, or video, window sticker, even verbal representations — presents a single, truthful, all in price that includes the doc fee and any other non-government, non-optional charges. Disclosures must be clear, conspicuous, and consistent with the overall message of the advertisement. If a condition applies to a price, such as a rebate available only to certain customers, that condition must be stated plainly and in a way that does not contradict the main price claim. Regulators will not accept disclosures that are hidden in footnotes or overshadowed by larger, more prominent statements. Dealers should also avoid advertising prices that depend on financing through a specific lender, the presence of a trade-in, or eligibility for rebates or incentives unless those conditions apply to every consumer. If a price is not available to all customers, it cannot be presented as the primary, most prominent advertised price. Similarly, any dealer installed accessories or add-ons that are not optional must be included in the advertised price. If the consumer cannot decline the item, the cost must be reflected in the price they see. Because regulators treat all advertising channels equally, Illinois dealers should regularly review their digital content, including automated feeds to third-party listing sites, to ensure that every price displayed complies with both federal and state law. Staff training is essential, particularly for marketing teams and outside vendors who may not be familiar with Illinois specific requirements. Regular audits of advertising materials, along with written policies and vendor compliance certifications, can help demonstrate good faith efforts for greater protection if regulators inquire. The FTC’s warning letters are a clear signal that automotive advertising is under heightened scrutiny. For Illinois dealers, the combination of federal expectations and the Illinois Consumer Fraud Act creates a strict environment in which accuracy, transparency, and consistency are essential. By ensuring the transparency of every advertised price, by presenting disclosures clearly, and by avoiding any practice that could mislead a reasonable consumer, Illinois dealers can significantly reduce their regulatory risks, not just to dealership entities but also to dealership principals and managers in their individual capacities, while maintaining consumer trust and preserving customer goodwill. Julie A. Cardosi is an Illinois Attorney and Principal of the private firm, Law Office of Julie A. Cardosi, P.C., of Springfield, Illinois. She has practiced law for over 40 years and represents the business interests of franchised motor vehicle dealers throughout Illinois. Formerly in-house staff General Counsel for the Illinois Automobile Dealers Association, she concentrates her private practice in the areas of dealership compliance matters, franchise law, transfers of ownership, mergers and acquisitions, commercial real estate transfers, dealership employment and other areas impacting day-to-day dealership operations. She also served as Illinois Assistant Attorney General and Deputy Chief of the Consumer Fraud Bureau of the Attorney General’s Office, where she was the primary author of the Illinois Motor Vehicle Advertising Regulations. The material discussed in this article is for general information only and is not intended as legal advice and should not be acted upon as such. Dealers should consult their own private legal counsel for application to their specific circumstances. For more information, Julie can be reached at jcardosi@autocounsel.com or at (217) 787-9782. 1. 15 U.S.C. § 45(a) 2. 815 ILCS 505/2 3. 14 Ill. Adm. Code 475 4. 815 ILCS 375/11.1 “Because regulators treat all advertising channels equally, Illinois dealers should regularly review their digital content, including automated feeds to third-party listing sites, to ensure that every price displayed complies with both federal and state law. 15 ILLINOIS AUTOMOBILE DEALER NEWS
In today’s automotive retail market, growth is more than opportunity; it’s a strategy. Every successful dealer group begins somewhere, often as a single rooftop operated by a dedicated owner. But moving from one well-run store to a multi-store enterprise is not simply a matter of buying another dealership. It requires intentional planning, disciplined execution and a mindset shift from operator to platform builder. For single-point dealers considering expansion, the first step is structural transformation. “The owner-operator model that works for one store does not scale,” explains Jennifer Rafael, executive VP and partner at DSMA. “Adding a second or third rooftop demands leadership layers that can manage operations independently while the owner focuses on strategy and capital allocation.” That means establishing a robust management framework, with strong general managers, controllers and fixed operations leadership who can run each store without the owner being involved in every decision. Centralized processes, standardized reporting and key performance indicators must be in place to monitor performance across locations. Capital planning and lender relationships are equally critical; growth requires a well-defined capital structure and a clear understanding of financing future acquisitions. Leadership depth becomes a defining factor in scaling successfully. When preparing for a second or third store, owners must shift from running daily operations to thinking strategically. They should plan to oversee capital deployment, acquisition strategy and cultural alignment while their leadership bench executes on the ground. Dealer groups that embrace this shift early avoid becoming bottlenecked by one individual. Financial discipline underpins every decision. Beyond access to capital, dealers must maintain rigorous reporting, forecasting and reinvestment practices. Accurate financial statements, standardized departmental reporting and forward-looking cash flow models allow for informed growth decisions. Equally important is a reinvestment strategy that strengthens fixed operations, technology, facilities and talent, preparing the business for future acquisitions. Operational systems also require reinforcement. Communication, reporting consistency and accountability are often the first to break down when a dealer expands beyond one store. Without standardized processes, it becomes difficult to scale best practices or compare performance. Dealer groups that invest in infrastructure early create the foundation for growth without sacrificing performance or culture. Acquisitions, while exciting, are only the beginning. First-time buyers often underestimate the post-acquisition integration required. Jennifer Rafael emphasizes focusing on leadership alignment, operational consistency and communication with employees and OEM partners. When integration is managed thoughtfully, each new rooftop becomes a building block for long-term enterprise value, rather than a temporary disruption. Brand and OEM relationships require strategic attention as groups expand. Overexposure to a single manufacturer can create risk, while thoughtful diversification strengthens resilience. Emerging groups should balance operational expertise with brand variety, maintaining strong factory relationships while mitigating reliance on any one product cycle. Transparency, consistent performance and long-term investment reinforce credibility with OEM partners, unlocking growth opportunities for the entire platform. Ultimately, the transition from single-store operator to multi-store group requires a shift in focus from individual store performance to organizational platform value. Successful dealers delegate operational responsibility to trusted leadership, focus on capital allocation and evaluate acquisitions based on how they strengthen the overall group. Expansion isn’t reactive — it is guided by strategy, infrastructure and the deliberate building of a scalable enterprise. Partnering with M&A forms like DSMA helps dealer groups navigate this complex journey with clarity and discipline. From market evaluation to transaction execution, DSMA ensures that every step supports long-term growth. Dealers learn to think beyond the next acquisition by building the leadership depth, operational consistency and financial strength that enable sustainable scaling. In an industry full of chance deals and fleeting opportunities, the most successful dealer groups grow by design, not by circumstance. They transform from operators into enterprise architects, building the leadership, systems and strategy that empower a single rooftop to evolve into a resilient, scalable and enduring platform. Engaging with experienced advisors can help dealer groups navigate expansion with the clarity and structure required for long-term success. To learn more about how DSMA supports this process, contact Jennifer Rafael, executive vice president and partner at DSMA, at jennifer.rafael@dsma.com. THE RULES FOR SCALING YOUR DEALER GROUP FROM ROOFTOP TO EMPIRE By DSMA 16 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.
While our n me h s ch nged under new ownership, the he rt of our comp ny rem ins the s me — including the reli ble, friendly te m you’ve lw ys worked with. Our go l is to be trusted p rtner for tr de nd profession l ssoci tions, strengthening membership nd connecting member businesses with their future customers. We look forward to what’s to come! mbr-connect.com (801) 676-9722 hello@mbr-connect.com New name. Same people. Renewed commitment. We’re excited to nnounce th t is now
Every day, materials leave your dealership. Used absorbents. Sludge from floor drains. Sanding dust. Paint booth filters. Spent solvents. Aerosol cans. They go into a drum, a tote or a dumpster — and operations move on. But here’s the uncomfortable question: Do you know, with documentation to prove it, whether any of that waste is legally considered hazardous? Because under federal EPA regulations, “I don’t know” is not a defense. Most Dealers Aren’t Trying to Cut Corners Dealership leaders are focused on customers, technicians, inventory and profitability. Waste disposal often feels routine — handled the same way it has for years. The risk isn’t intentional wrongdoing; it’s assumptions. Many common dealership waste streams can qualify as hazardous under federal law. And unless a proper hazardous waste determination has been completed and documented, simply throwing that material in the trash may be considered illegal disposal. Regulators don’t ask whether the waste looked hazardous; they ask for your documentation. The Waste Streams That Create Risk You don’t need a large operation to generate potentially hazardous waste. Common dealership waste streams include: • Certain fuels, oils and shop chemicals • Used absorbents and spill cleanup materials • Aerosol cans • Sludge from floor drains or oil/water separators • Shop rags • Lithium-ion batteries Hazardous Waste Disposal Rules Dealerships Can’t Afford to Ignore By Zach Pucillo, EHS Compliance Manager, KPA 19 ILLINOIS AUTOMOBILE DEALER NEWS
• Paint booth filters and overspray residue • Sanding dust and body filler debris • Waste thinners and leftover coatings • Still bottoms from solvent recyclers Automotive coatings and chemicals often contain metals such as chromium, cadmium, lead or barium. Many solvents are ignitable. Even when materials appear dry, those contaminants may still be present. If those metals or chemicals can leach into groundwater under landfill conditions, the waste may meet the EPA’s definition of hazardous. At that point, it cannot legally go into the dumpster. What an Inspection Can Really Look Like During inspections and investigations, regulators may physically examine waste handling practices. In some cases, the EPA has seized facility dumpsters, had their contents dumped out, and gone through the debris to identify potentially hazardous waste that was improperly discarded. Imagine that happening in front of your team — or worse, in view of customers. When inspectors find questionable materials, the next request is immediate: “Show us your hazardous waste determination documentation.” If it doesn’t exist, the exposure is significant. How the EPA Makes the Determination Under the Resource Conservation and Recovery Act (RCRA), any waste is hazardous if it is listed by the EPA or exhibits one of four characteristics: 1. Ignitability 2. Corrosivity 3. Reactivity 4. Toxicity The most common issue in dealership operations is the toxicity characteristic. The EPA-approved test used to evaluate this is the Toxicity Characteristic Leaching Procedure (TCLP). This laboratory analysis simulates landfill conditions to determine whether metals or chemicals would leach above regulatory thresholds. If the test exceeds those limits, the waste must be: • Properly labeled and stored • Managed within regulated time limits • Transported by a licensed hazardous waste hauler • Shipped with a hazardous waste manifest • Disposed of at a permitted facility That process is very different — and far more regulated — than routine trash disposal. Why ‘We’ve Always Done It This Way’ Is Risky The EPA allows waste determinations to be made using generator knowledge or analytical testing. In theory, you can rely on Safety Data Sheets (SDS). In reality, dealership waste streams are rarely composed of a single product. They are mixtures — layers of coatings, cleaners, fluids and residues accumulated over time. “Facilities across the country have faced substantial penalties not because they intended to violate the law, but because they failed to properly evaluate and document their waste streams. SDS documents describe raw materials, not the final waste sitting in your dumpster. Facilities across the country have faced substantial penalties not because they intended to violate the law, but because they failed to properly evaluate and document their waste streams. The most common violation isn’t deliberate. It’s failing to determine. What Smart Dealers Are Doing Proactive dealerships take a disciplined approach: 1. Inventory every waste stream — not just liquids. 2. Confirm there is documented support for how each waste was classified. 3. Conduct TCLP testing where appropriate to obtain defensible data. 4. Maintain organized records of lab results, waste profiles and manifests. 5. Reevaluate when processes change, including new paint systems, chemical vendors or EV service offerings. This isn’t about creating unnecessary work. It’s about eliminating uncertainty — before an inspection eliminates it for you. The Bottom Line You’ve worked too hard building your dealership to let something sitting in a dumpster create regulatory exposure. A documented hazardous waste determination is more than paperwork; it protects your dealership from substantial penalties, your operations from disruption and your reputation in the community. If you don’t know what’s in your dumpster, now is the time to find out — before someone else does. Zach Pucillo holds the designations of Certified Safety Professional and Certified Hazardous Materials Manager and was named a 2022 Rising Star of Safety by the National Safety Council. As EHS compliance manager for KPA, Zach is tasked with researching and interpreting existing and new industry regulations. 20 ILLINOIS AUTOMOBILE DEALER NEWS
Advertising in this public tion connects you with decision-m kers who re ctively seeking solutions, giving your mess ge the credibility nd visibility it needs to inspire ction. Reserve Your Ad Space Today! Turning Readers into Customers mbr-connect.com • (801) 676-9722 hello@mbr-connect.com 21 ILLINOIS AUTOMOBILE DEALER NEWS
Manage Your Reputation With Smart Hiring Practices By Federated Insurance The people you hire play a key role in the success and bottom line of your business. Your team often serves as the face of your company, directly shaping public perception. When customers interact with an employee, they may form an opinion about your entire brand. Think about your business’ reputation within your community and online. Are your employees polite and professional in their actions and responses? Do they consistently follow company policies? If your workplace is open to the public, does your team keep it clean and organized? If you have company drivers, do they drive safely? Your Team Can Help Shape Your Reputation The people you hire directly reflect on you and your business. To help manage your reputation and make appropriate hiring decisions, consider these tips: • Post Transparent Job Openings: Clearly outline all job qualifications, responsibilities, work hours, pay, benefits, titles and growth opportunities. • Define Your Values: Clearly communicate your business values and the qualities you seek in applications and during interviews. • Screen Carefully: Look beyond practical skills to assess an applicant’s attitude and personality. • Check References: When possible, contact previous employers and references. Keep in mind that past actions can predict future behavior. • Train Thoroughly: Have an onboarding plan ready to ensure every new hire understands your workplace standards and policies. Your reputation is as important to your business as the people you hire and employ. Contact your local Federated Insurance marketing representative to learn more about this important risk management topic. 22 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
Illinois Automobile Dealers Association 300 W. Edwards St. Springfield, Illinois 62704 This magazine is designed and published by MBR Connect, formerly The newsLINK Group LLC | (801) 676-9722 Your magazine: On your phone, on your tablet, on your schedule. connected stay
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