of motor vehicles in Illinois. Our focus is to provide the lawmakers and staff with the correct facts when making important decision/votes regarding the motor vehicle franchise industry. We are continuously testifying before legislative committees and providing industry information when deemed necessary. During the past several years, our legislative office has enjoyed much success in our efforts, such as: • Passing one the strongest warranty laws addressing parts reimbursement, time standards and labor rates compensation for dealers in the country. • Several major amendments to the Illinois Motor Vehicle Franchise Act which balances the power between auto manufactures and franchised dealers. • Preserving many attempts to repeal the Illinois Sunday Closing law on vehicle sales. Maintaining the current law is a priority for employees at Illinois dealerships. • Establishing and preserving the Documentary Service Fee levies on vehicle sales. • Eliminating Illinois onerous $10,000 Sales Tax Cap on vehicle trade–ins. • Extending the driveaway permits to 90 days instead of 30 days. • Preserving the Dealer’s Retailers Discount Rate they receive for collecting and remitting Illinois sales tax. • IADA is in involved daily in all facets of the political and bureaucratic process when it comes to regulating new car dealers and the industry. LEGAL REPRESENTATION IADA provides legal counsel and financial assistance through a Legal Defense Fund to assist in judicial and regulatory proceedings that affect the franchised new car and truck retailing industry. Currently, our industry faces attacks on our long-standing franchise laws as several unregulated companies are trying to sell new vehicles directly without being properly licensed. Many more unregulated companies from around the world are waiting and hoping to sell vehicles in Illinois without independently licensed dealers and without proper oversight from the state. Our manufacturers are already leading the way with some of the most advanced, high-tech electric and ICE vehicles, and new cars and trucks are sold through franchised dealers because the business model benefits consumers, local communities and manufacturers. All companies should have to abide by the same laws. Because these companies are operating in violation of our current laws regulating vehicle sales, IADA has filed a complaint against these improperly licensed companies and the State. The IADA Legal Defense Fund, with support from NADA and the Peoria Metro New Car Dealers Association, is funding this complaint and IADA has commissioned a statewide campaign explaining the huge benefits that franchised dealerships provide to their local communities and most importantly their customers. INFORMATION RESOURCE By forging relationships with the news media, IADA is an information resource, delivering a strong message that the retail automotive industry is one of Illinois’ most important economic engines. Illinois franchised dealers create over 92,000 jobs, generate $34.4B in sales, pay $2.5B in payroll and $2.3 B in state sales tax. Fifteen percent of all state and local tax revenue comes from dealerships. IADA serves as a prime source of information for members, delivering brief and concise IADA Bulletins and other correspondence to keep dealers abreast of important industry matters and provide necessary information concerning current laws and regulations affecting the automobile industry. DEALERSHIP MEMBER PROGRAMS Using the significant group buying power of Illinois automobile dealers, IADA provides very competitive in-house programs and has negotiated discounted rates for services offered by distinguished companies that are officially recommended by IADA. This business model keeps membership dues low and returns dividends to members in the form of lower prices on products and services they use every day. One of the premier programs that IADA delivers is the partnership program with CVR. With the IADA headquarters also across the street from the Illinois Secretary of State office (the state’s license and title branch), a large part of the IADA staff works on behalf of the dealerships to process and deliver their title transactions each day. This 21-year partnership with CVR has helped to revolutionize the title and registration process for dealers, and with the Association involvement and influence, R&D improvements and legislative/rule enhancements are continually made. BENEFITS OF THE FRANCHISED DEALER SYSTEM Motor vehicles are highly regulated products that require licensing, insurance and financing. These vehicles also must meet numerous environmental and safety standards. All 50 state legislatures have enacted laws governing the sale and servicing of cars, which is usually done by franchised new-car and -truck dealerships. These franchise laws not only protect consumers, but also govern the relationship between dealerships and manufacturers. Continued on page 18 17
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