American Truck Dealers Dealer of the Year KATIE HOPKINS Vol. 35 № 1 A Publication of the Illinois Automobile Dealers Association Automobile Dealer News TIME Dealer of the Year Nominee MICHAEL ETTLESON
Memberships in: • AUTOCPA Group • The American Institute of Certified Public Accountants • The Illinois CPA Society CERTIFIED PUBLIC ACCOUNTANTS Located in Central Illinois, we serve the entire state. Contact us today to learn how we can help your dealership thrive. Drive Your Dealership Toward Financial Success We specialize in automobile dealers in the following areas: • Dealership valuations • Automobile dealer legal support • Buy-Sells for dealerships • LIFO inventory computations • Financial statement analysis • Corporation Income Tax returns • Personal Income Tax returns • CPA prepared financial statements • Dealer estate planning • Employee theft consulting • Internal control studies and audits • Profit consulting • Training office managers/CFO’s • 401K Audits Serving more than 250 Automobile Dealers throughout the United States (309) 662-8797 Email: woodwardassoc@cpaauto.com Website: www.cpaauto.com 1707 Clearwater Avenue P.O. Box 1584 ·Bloomington, IL 61702
CONCENTRATIONS Dealership Mergers & Acquisitions Dealership Franchise Law Business Litigation/Motor Vehicle Review Board Disputes Manufacturer/Franchisor Relations Business & Commercial Law Advertising Compliance Review Consumer Complaints Dealership Succession Add Points Real Estate Law Employment & Labor Law Federal & State Regulatory Compliance BACKGROUND Principal, Private Law Firm Former, IADA Legal Counsel Former, Illinois Assistant Attorney General, Deputy Chief, Consumer Protection Division Drafted Illinois Motor Vehicle Franchise Act Amendments Creating Motor Vehicle Review Board Drafted Illinois Motor Vehicle Advertising Regulations Julie A. Cardosi, Esq. 3040 Spring Mill Drive, Suite B Springfield, IL 62704 (217) 787-9782 jcardosi@autocounsel.com www.autocounsel.com Exclusive. Strategic. Results. Exclusively representing the unique business interests of automobile dealers for 38 years.
CONTENTS Vol. 35 No. 1 Chairman John Alfirevich / 708.429.3000 Apple Chevrolet, Inc. 8585 W. 159th St. Tinley Park, IL 60477 Vice Chairman Jamie Auffenberg / 618.624.2277 St. Clair Auto Mall Auffenberg Auto Mall 1130 Auffenberg Ave. Shiloh, IL 62269 Secretary/Treasurer Rick Curia / 815.288.4455 Ken Nelson Auto Group 1100 N. Galena Ave. Dixon, IL 61021 Executive Director Joe McMahon / 217.753.0220 Illinois Automobile Dealers Association 300 W. Edwards, Springfield, IL 62704 2024 OFFICERS ©2024 Illinois Automobile Dealer News | The newsLINK Group, LLC. All rights reserved. Illinois Automobile Dealer News is published four times each year by The newsLINK Group, LLC for the Illinois Automobile Dealers Association (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 the 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. The Illinois Automobile Dealer News is a collective work, and as such, some articles are submitted by authors who are independent of the IADA. While the Illinois Automobile Dealer News encourages a first-print policy, 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 6 Scan here to check out the new, interactive IllinoisDealers.com website! 14 6 CHAIRMAN’S MESSAGE IADA Charges Ahead By John Alfirevich, Chairman, Illinois Automobile Dealers Association 8 Legislative Priorities By NADA 10 COUNSELOR’S CORNER New Corporate Ownership Reporting Requirements for Entities Uncle Sam Wants To Know Who is Behind That Corporate “Veil”? By Julie Cardosi, Esq., Law Office of Julie A. Cardosi, P.C. 12 TIME Dealer of the Year Nominee Michael Ettleson 14 Hopkins Family Makes History as Truck Centers Inc. Earns Second ATD Dealer of the Year Award 16 Knowing the Value of Your Dealership: A Key Advantage By Maxime Théorêt, Managing Partner — DSMA (Dealer Solutions Mergers & Acquisitions) and Jennifer Rafael, Partner and Vice President, Midwest — DSMA 19 How to Build a Consumer-Friendly Service Experience That Is Efficient By Sharon Kitzman, Dominion DMS 22 Brushing Up on the OSHA Top 10 By Federated Insurance 4 Illinois Automobile Dealer News
A Better Core in 2024 DominionDMS.com (866) 928-3210 1515 South Federal Highway, Suite 406 Boca Raton, FL 33432, USA SCHEDULE YOUR DEMO Discover how VUE By Dominion DMS gives your dealership: Hearing the cries of the automotive community, we developed a brand new cloud core DMS, called VUE. This software is flexible, efficient and innovative. Schedule a demo and upgrade to a Better Core in 2024. EFFICIENCY INNOVATION FLEXIBILITY SAVINGS Personalization, Engagement, and Speed – the holy trinity of an amazing customer experience. Being a cloud-core DMS and using agile development methodologies means that we can keep dishing out top-notch solutions for our dealers and partners. Dominion DMS is easy to learn and simple to use. You have easy access from any web connection and you get to choose the apps you want and need to drive your success. Behold, VUE! Waving a magic wand to make DMS core fees vanish into thin air. Franchise dealerships can now save while still enjoying our best in class accounting, parts, sales, and service modules.
JOHN ALFIREVICH CHAIRMAN Illinois Automobile Dealers Association Chairman’s Message IADA Charges Ahead It is my great pleasure to address our membership as this year’s IADA chairman. I’m honored and humbled to be able to serve in this position. I have been involved with IADA for many years and in many capacities. Also, I watched as my father served as IADA chairman in 1997 and know firsthand the critical role that IADA plays in promoting our Illinois dealership industry and protecting our Illinois motor vehicle franchise system. As we look over the 100+ years of IADA’s history, it’s amazing to note how some of the issues that challenge us today have changed so little over the past century. The ongoing intrusions into the management of our business by the manufacturers seem to be a fact of life that must be continually dealt with. Ford tried imposing stringent requirements on its dealers in order to sell electric vehicles, and several EV-only manufacturers continue to campaign full bore for the right to sell directly to consumers. I believe many manufacturers would love to see the agency model in place in the United States. I assure you that IADA does all in its power to protect the franchise model. When some may sit back and see how things play out, IADA charges ahead. When Ford announced its Model E modifications to the Ford dealer agreement that would have reduced dealers to delivery agents, IADA fully funded the successful dealer protest. The dealer victory in the Model E protest will protect hard-earned rights for all franchised dealers in Illinois. In fact, the Illinois protest is a model for dealers throughout the country. We are challenging Illinois’s SOS and AG office (funding nearly the full dealer lawsuit) from allowing Rivian, Lucid and other manufacturers to deliver vehicles in Illinois without using franchised dealers. We secured another huge victory when we amended the Illinois Motor Vehicle Franchise Act to require manufacturers to compensate franchised dealers fairly for warranty work on vehicles, and we are currently battling Volkswagen, who has filed a lawsuit to overturn our warranty reimbursement bill. Our bill has translated into a much needed revenue increase for our dealers. As we partner together through our state association, IADA, we ensure that we are best positioned to protect the investments in our dealerships and fight against any future threats from overreaching government regulations or Illinois Motor Vehicle Franchise Act violations. I want to personally thank all our dealers who are actively engaged in supporting IADA efforts and encourage everyone to stay diligent as one unified voice. I look forward to an outstanding 2024 and will do all in my power to ensure that IADA remains one of the premier dealer associations in the country. 6 Illinois Automobile Dealer News
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Legislative Priorities By NADA Cosponsor the “FTC Redo Act” (S. 3014) The Federal Trade Commission (FTC) proposed a “Vehicle Shopping Rule” that would overwhelm car buyers and small businesses with needless and additional costs, paperwork and lengthened sales process. The rule was proposed without credible data-driven analysis or the necessary time for public comment to avoid unintended consequences to consumers and small businesses. A comprehensive study by the Center for Automotive Research found that the rule would cost consumers more than $38 billion (over 10 years) and add 2 hours for consumers to complete a typical transaction. The FTC’s proposed rule would make the auto buying experience worse, not better, for consumers. NADA supports the FY 24 Financial Services and General Government appropriations bill (H.R. 4664), which includes language that stops the FTC from finalizing, implementing or enforcing the “Vehicle Shopping Rule” for one year. NADA also supports the “FTC REDO Act” (S. 3014), which would stop the “Vehicle Shopping Rule” and require the FTC to follow certain procedures to ensure the rule is the result of an informed process if it chooses to “REDO” the rule. The bill requires the FTC to 1) issue an Advance Notice of Proposed Rulemaking; 2) conduct a quantitative study on auto retailing; 3) conduct consumer testing; and 4) publish a cost-benefit analysis based on actual data. The FTC failed to perform these essential steps before proposing its rule. The “FTC REDO Act” will soon be introduced in the House. Members of Congress are urged to cosponsor the “FTC REDO Act” to stop the flawed “Vehicle Shopping Rule” and prevent the FTC from needlessly imposing significant burdens and costs on consumers and small business dealers. EPA’s Proposed 67.5% Electric Vehicle Mandate Goes Too Far, Too Fast The Environmental Protection Agency (EPA) proposed new emissions standards that would effectively require 67.5% of U.S. car sales to be electric by 2032. New car and truck dealers are essential to sell and service electric vehicles (EVs) and already have invested $5 billion of their own capital in the tools, equipment, training and recharging infrastructure to move from early adopters to mass marketing EVs to average consumers. Despite federal incentives, customers are not purchasing EVs in the quantities required for automakers to meet these different government mandates. 8 Illinois Automobile Dealer News
The current EPA proposal ignores real-world consumer demand and, as a result, goes too far, too fast. Consumers are not moving as fast as the proposed regulations, largely because there are other changes needed to make EVs broadly attractive to consumers, i.e., affordability, sufficient and reliable charging infrastructure, and acceptable charging speeds. A single national standard for achievable greenhouse gas regulations that leverages consumer demand is needed to produce the fleet turnover necessary to deliver environmental benefits. NADA supports language in the FY 24 House Interior-Environment appropriations bill (H.R. 4821) to prevent the EPA from spending money to finalize this unrealistic EV mandate for one year. H.R. 4821 passed the House on Nov. 3. Congress should enact legislation that stops EPA from finalizing its unreasonable EV mandate, which would severely limit the ability of consumers to choose a new vehicle that meets their budget and needs. Pass the Non-Controversial “Supply Chain Disruptions Relief Act” (H.R. 700/S. 443) Under existing law, the Treasury Department has the authority to allow businesses that utilize the last-in first-out (LIFO) accounting method extended time to replace inventory if a “major foreign trade interruption” makes inventory replacement difficult or impossible. Pandemic-related global disruptions and reduced auto production made it impossible for dealers to replenish new vehicle supply. Despite broad bipartisan support for the Treasury’s use of its existing authority regarding vehicle inventory, the Treasury declined as it believes additional legislative authority is needed. Under the “Supply Chain Disruptions Relief Act” (H.R. 700/S. 443), Congress would determine that the conditions necessary to grant additional time to replace vehicle inventories under existing law due to pandemic-related foreign trade interruptions have been met. As a result of supply chain disruptions beyond the dealers’ control, LIFO recapture triggered significant, unexpected tax liability that continues to harm many smaller, multi-generational family dealerships. Members of Congress should cosponsor the “Supply Chain Disruptions Relief Act” and urge House and Senate leadership to pass this technical and non-controversial legislation at the earliest opportunity. 9 Illinois Automobile Dealer News
COUNSELOR’S CORNER New Corporate Ownership Reporting Requirements for Entities Uncle Sam Wants To Know Who is Behind That Corporate “Veil”? JULIE CARDOSI, ESQ. Law Office of Julie A. Cardosi, P.C. A federally mandated requirement impacting reporting obligations for millions of businesses took effect Jan. 1, 2024, requiring certain limited liability companies (LLCs), corporations and other entities (subject to exemptions) to file beneficial ownership information reports with the U.S. government under the Corporate Transparency Act of 2021 (CTA). CTA was enacted by Congress in 2021 to help prevent and fight money laundering, corruption, and financial and tax fraud. In implementing CTA, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) published a rule extending the reporting timeline for “Reporting Companies” formed after Jan. 1, 2024, but before Jan. 1, 2025, following FinCEN’s Beneficial Ownership Information Reporting Rule (BOIR Rule) which outlines requirements pertaining to who must file, what information has to be reported and when reports must be filed. LLCs, corporations and other business entities must be aware of and ensure their compliance with the BOIR Rule requirements, if applicable. Noncompliance can lead to the imposition of costly penalties. Entities must evaluate whether the rule is applicable to them, specifically whether they fall under the definition of a “Reporting Company.” They must 10 Illinois Automobile Dealer News
also determine whether the entity meets any of the exemptions to the definition of a Reporting Company. If the entity is a Reporting Company and does not meet an exemption, the entity must determine what information it must submit and when. The BOIR Rule divides Reporting Companies into two categories: domestic and foreign: i. A domestic Reporting Company is a corporation, LLC or other entity created by the filing of a document with a secretary of state or similar office under the laws of a U.S. state or American Indian Tribe. ii. A foreign Reporting Company is a corporation, LLC or other entity formed under the law of a foreign country and registered to do business in any U.S. state by the filing of a document with a secretary of state or similar office under the laws of a U.S. state or American Indian Tribe. As the definition of a “Reporting Company” is exceedingly broad, most domestic entities fall within (i). Notably, some domestic entities (e.g., certain trusts) are not created by the filing of a document with the secretary of state or similar office. The entity must next determine whether an exemption applies to the reporting requirements, as the purpose of the exemptions is to exempt from CTA reporting requirements those entities that are already subject to separate ownership reporting requirements under U.S. regulations.1 These exemptions have specific requirements to qualify. By way of example, for the “large operating entity” exemption, the entity must employ 20 full-time employees in the U.S., have an operating presence at a physical office in the U.S. and file a federal income tax or information return in the U.S. evidencing more than $5 million in gross receipts or sales. While a dealership operating entity might satisfy this exemption’s requirements, entities owning the dealership real estate typically employ very few, if any, employees and would likely not satisfy the exemption requirements. Reporting Companies not subject to exemption must file initial reports with information: (i) about the Reporting Company; (ii) the beneficial owners; and (iii) if created or registered to do business in a state after Jan. 1, 2024, the Reporting Company’s Applicant (i.e., individual who directly files the entity-creating document). Reports must include the Reporting Company’s legal name, address, state of formation, IRS taxpayer ID number, beneficial owners (i.e., any individual who directly or indirectly either exercises substantial control over the entity or owns at least 25% of the ownership interests of the entity), and beneficial owners’ names, dates of birth, current addresses and a photographic ID document (i.e., passport or driver’s license). After the initial report filing, Reporting Companies do not have annual filing requirements but must update and correct as necessary. Below are applicable reporting deadlines: • Entities created or registered before 2024 must file their initial reports by Jan. 1, 2025. • Entities created or registered in 2024 must file within 90 days of creation or registration. 1. The exemptions include: security reporting issuer; government authority; bank; credit union; depository institute holding company; money services business; broker or dealer in securities; securities exchange or clearing agency; other Exchange Act registered entity; investment company or investment adviser; venture capital fund adviser; insurance company; state-licensed insurance producer; Commodity Exchange Act registered agent; accounting firm; public utility; financial market utility; pooled investment vehicle; tax-exempt entity; entity assisting a tax-exempt entity; large operating company; subsidiary of certain exempt entities; inactive entity. • Entities created or registered on or after Jan. 1, 2025, must file within 30 days of creation or registration. Entities must review the CTA and BOIR Rule to determine whether reporting requirements apply and consult with their legal and tax advisers as several open questions exist concerning the BOIR Rule’s implementation. Julie A. Cardosi is Principal of the private firm, Law Office of Julie A. Cardosi, P.C., of Springfield, Illinois. She has practiced law for 38 years and represents the business interests of franchised motor vehicle dealers throughout Illinois. Formerly in-house legal counsel for the Illinois Automobile Dealers Association, she concentrates her private practice in the areas of dealership operations and compliance matters, transfers of ownership, mergers and acquisitions, franchise law, commercial real estate transfers, dealership employment and other areas impacting day-today dealership operations. She has also served as former Illinois Assistant Attorney General and Deputy Chief of the Consumer Fraud Bureau of the Attorney General’s Office. 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, ext. 1. 11 Illinois Automobile Dealer News
Michael Ettleson TIME Dealer of the Year Nominee 12 Illinois Automobile Dealer News
Michael Ettleson is one of a select group of 49 dealer nominees from across the country who was honored at the 107th annual National Automobile Dealers Association (NADA) Show in Las Vegas, Nevada, on Feb. 3, 2024. The TIME Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted honors. The award recognizes the nation’s most successful auto dealers who also demonstrate a long-standing commitment to community service. Ettleson was chosen to represent the Illinois Automobile Dealers Association in the national competition — one of only 49 auto dealers nominated for the 55th annual award from more than 16,000 nationwide. “I have been fortunate to have good people support me in business, a loving wife of 42 years and a wonderful family,” nominee Ettleson said. “An Ettleson dealership has been in the Chicago area since 1968, and I am proud to continue our family’s legacy of employee longevity, honesty in pricing and outstanding service to our customers.” Ettleson earned a B.S. in accounting from the University of Illinois Urbana-Champaign in 1980. After working for two years at a CPA firm in Chicago, he returned to the Chevrolet dealership owned by his father, Maurice, in Elmhurst, Illinois, to learn all aspects of the retail auto business. “I started working as a porter at the store when I was 13 years old,” he said. “Throughout high school and college, I also helped out in the dealership’s accounting office.” When he returned to the business full-time, Ettleson moved through all departments, from parts to service to F&I (Finance & Insurance). He soon took on leadership roles, including office manager at a Cadillac dealership owned by his father, and eventually, he and a partner purchased the business. Today, he is the sole owner of Ettleson Cadillac Buick GMC, as well as Ettleson Hyundai, which was acquired in 2003. “I believe in treating others the way I want to be treated, which has served me well in business,” Ettleson said. “I give my managers autonomy to make their own decisions and offer them guidance to run dealerships as best as they can.” In addition, Ettleson finds it rewarding to provide his employees with a great work environment and with the necessary tools to do their jobs effectively and enjoyably. “I love to offer our employees the opportunity to earn a good living, and I enjoy watching their families,” he said. “It is also gratifying to help customers with their transportation needs in an honest and efficient manner.” An active member in his state and local dealer associations, Ettleson has served on the board of the Illinois Automobile Dealers Association since 2015 and was chair of the group in 2020. He has also provided his leadership to the Chicago Automobile Trade Association (CATA) as a member of the board, chair of the board and chair of the Chicago Auto Show. In 2023, he partnered with the CATA to raise money for local service people and their families through the Chicago Automobile Trade Association’s USO BBQ for the Troops. The dealership joined more than 80 Chicago stores to offer hot dogs and burgers to visitors and raise funds for the USO Illinois. Of all of Ettleson’s good works, he is most proud of his time working with Helping Hand, where he served on the board of directors from 1995-2010 and policy board from 2010-2018. The organization provides services to children and adults with developmental disabilities and offers employment opportunities, community living options and day programs. “We have sponsored many events and golf outings for Helping Hand over the years,” he said. “My service on the boards has helped the center grow into the organization it is today while fulfilling its mission to guide individuals with developmental disabilities to lead productive and useful lives with as much independence as possible.” Dealers are nominated by the executives of state and metro dealer associations around the country. A panel of faculty members from the Tauber Institute for Global Operations at the University of Michigan select one finalist from each of the four NADA regions and one national Dealer of the Year. Ettleson was nominated for the TIME Dealer of the Year award by Joe McMahon, executive director of the Illinois Automobile Dealers Association. He and his wife, Jeri have four children. 13 Illinois Automobile Dealer News
Hopkins Family Makes History as Truck Centers Inc. Earns Second ATD Dealer of the Year Award Truck Centers Inc.’s (TCI) President/CEO, Katie Hopkins, received the industry’s highest honor, the prestigious 2024 American Truck Dealers (ATD) Dealer of the Year Award, at the ATD Show in Las Vegas, NV. The ATD Dealer of the Year Award is a national distinction that recognizes commercial truck dealers for business performance, industry leadership, and charitable and civic involvement in their local communities. An esteemed panel of independent experts from Indiana University’s Kelley School of Business used a decision matrix to evaluate various aspects of dealer operations, business and the seven nominee’s individual contributions. “Over the past 11 years since her approval as dealer principal successor, she has spearheaded acquisitions in multiple markets and championed growth and core values for the dealerships,” praised the panel of judges. “Hopkins has seen growth with TCI in key performance indicators, including substantial increases in the past five years. Under her leadership, the firm operates as a solutions valueadded company.” Hopkins has spent her entire career in the dealer industry and aligned with Daimler Trucks North America (DTNA) and their Freightliner and Western Star brands at TCI. She and her brother, Justin Hopkins (VP of Sales), have both been approved as DTNA dealer principal successors and are the third generation of their family to lead the company. Katie was promoted to CEO and successor of her father, M. John Hopkins, IV, who led the business for 48 years. The elder Hopkins retains his role as chairman alongside his longstanding TCI partner and minority owner, Michael F. Yates, as vice chairman. In winning this year’s award, the Hopkins family etched their names into the ATD history book. Katie and her father, John, are now the first parentchild duo bestowed ATD Dealer of the Year honors. 14 Illinois Automobile Dealer News
“This ATD Dealer of the Year Award is a great honor for Truck Centers Inc. and a testament to our team,” said Hopkins following her award acceptance. “Our people have always been our best resource, but we have had to work through tremendous growth and change in our 54-year history. I am committed to implementing sustainable and meaningful initiatives to be more agile and improve experiences for our 750 team members and customers. We are so fortunate to have a talented and passionate group of men and women driving this change by providing our valued customers with exceptional service and being empowered to be the frontline heroes of our story.” Founded in 1970 as a single store with 15 employees in a rural community near St. Louis, the TCI network now comprises 10 full-service dealerships and two auxiliary locations in Illinois, Indiana and Missouri, with 750 team members. The group was also the 2014 Successful Dealer Award winner. “I am thrilled for what this award means for our team,” continued Hopkins. “We have many team members and multi-generational families who have been with us since that 1990 win and before. They understand what an honor this is for us all. We also have a lot of newer folks who have embodied our traditions and legacy with a sense of pride. We have worked to build upon a rich heritage but remain open to innovation, collaboration and progressive change. I appreciate how they have adapted to our network’s growth, new technology, a pandemic, and internal and external shifts because they make my job so rewarding and meaningful.” Truck Centers Inc. (TCI) is a premier network of medium- and heavy-duty truck dealerships offering Freightliner, Western Star, Freightliner Custom Chassis, and Kalmar/Ottawa products. With a 50+ year heritage, TCI, led by three generations of the Hopkins family, has grown from a single store into a robust network of ten full-service dealerships and two auxiliary locations supported by 750 team members in Illinois, Indiana and Missouri. Our team’s success is grounded in providing exceptional customer service, an extensive inventory of premium parts, comprehensive service offerings, and complete collision repairs for all makes. As responsible stewards and trusted partners, TCI is committed to delivering exceptional customer service in a collaborative, innovative environment that fosters a communal spirit of giving back. You can learn more by visiting www.truckcentersinc.com. 15 Illinois Automobile Dealer News
According to our team at DSMA, which has carried out over 1,700 dealership evaluations across North America, knowing the true market value of your business is the most important asset a dealer should have in 2024. Why Is It So Important To Conduct This Valuation? Proactive companies in any sector instinctively know that they cannot wait for an event or a crisis in either their industry or the financial markets in order to be prepared to react. A regular dealership appraisal provides the owner with a much-needed accurate picture of its tangible and intangible business assets. By having this assessment in hand, the dealer demonstrates that he or she is ahead of the eventualities his or her business may face. He or she knows what needs to be improved to be among the best in the industry — and financial partners love that! In fact, more and more North American financial institutions are using DSMA appraisals to grant loans to dealers who request them. Knowing the value of your dealership also helps you to be well-prepared for succession, to be able to navigate troubled waters in the event of tight cash flow, or to obtain financing for expansion plans. A signed DSMA assessment also helps to cope with personal events such as separation, divorce or even death. These events can affect the dealership’s day-to-day operations from one day to the next, and having a business valuation in hand can help you get through these difficult times. How Does the Valuation Process Work? From the moment the dealer calls on our services, our team — composed of financial analysts, CPAs and economists — begins a thorough and meticulous evaluation of all departments affecting the business. Departmental activities, loans, vehicle fleet, financial reports ... everything is examined with a fine-tooth comb. Even better, there is no need for the owner to travel in 2024 — everything can be done remotely. By email, text message or virtual chat, and all document exchanges and dealer responses to our questionnaires are secure and confidential. Just like in a tax exercise, it is essential that the dealer gives a true picture of all his or her activities and assets for the valuation to be accurate. In general, the process, which is carried out between the dealer and a member of the DSMA team, takes between two and three weeks to complete. We recommend carrying it out on an annual basis, particularly at the beginning of the year, between January to April. In many cases, this is the period when most car dealerships complete their financial year, a time for preparing taxes and financial statements with their accounting teams. This is an opportune moment, as dealers already have most of the documents they need to carry out the appraisal. What Are the Other Advantages of a DSMA Evaluation? No one wants any unpleasant surprises. Our dealership evaluation remains the best preventative exercise, providing a quick visualization of good (and not-sogood) dealership practices. Thanks to our expertise and the incalculable data provided by our QUOTUS data analysis tool — a confidential and secure digital platform with over 3.5 million dealer data points — our assessment helps maximize the value and continuity of the business. It offers a solid boost to dealers wishing to improve their performance and identify any shortcomings in their departments. Our qualified staff of dealership experts can detect business trends at an early stage so that the dealer doesn’t leave money on the table, whatever the market or location of the dealership. Out of the thousands of evaluations we’ve carried out over the past 10 years, the results of many have been more than 20% off the dealer’s expected value. A difference that is generally higher ... but sometimes lower than the dealer’s expected value. For all these reasons, we at DSMA are convinced that our evaluation service is the most effective tool for ensuring the growth of motor-vehicle dealerships operating not only in the automotive sector, but also in the motorcycle, heavy-duty truck, marina and heavy-vehicle industry. To date, we are the most reliable business intelligence team in the North American automotive market. KNOWING THE VALUE OF YOUR DEALERSHIP: A Key Advantage By Maxime Théorêt, Managing Partner — DSMA (Dealer Solutions Mergers & Acquisitions) and Jennifer Rafael, Partner and Vice President, Midwest — DSMA 16 Illinois Automobile Dealer News
We are the top firm in North America. DSMA is an Automotive Intelligence & M&A Advisory Service that has completed 1700+ valuations and sold 425+ dealerships. Hire DSMA. Visit DSMA.com to get started. UNLOCK YOUR TRUE VALUE. GREG BROWN M&A Associate greg.brown@dsma.com 312.674.4556 JENNIFER RAFAEL Vice President, Partner jennifer.rafael@dsma.com 312.927.9561 OUR MIDWEST TEAM KEVIN CHRIST M&A Associate kevin.christ@dsma.com 312.674.4556 JONATHON MORONI Business Development Manager jonathon.moroni@dsma.com 312.674.4556 Is your business in the dark? ADVERTISE IN THIS MAGAZINE AND SHINE A LIGHT ON YOUR COMPANY. QR Code: website /ad-space CONTACT US TO LEARN MORE. 801.676.9722 • 855.747.4003 sales@thenewslinkgroup.com 17 Illinois Automobile Dealer News
CVR: THE EVR SOLUTION BUILT FOR YOUR DMS THE BEST CUSTOMER VEHICLE REGISTRATION EXPERIENCE IN ILLINOIS CVR is the only choice for automotive dealers who demand an EVR solution with a flawless, robust and secure integration to your DMS. Unlike our competitors, we’ve partnered with the IADA to deliver a faster and more efficient titling and registration process. Your customers won’t have to do anything after the sale except drive away happy in a fully registered vehicle. We’ve also teamed with Automotive Titling Corporation (ATC), to offer a full in or out-of-state solution that creates an integrated, 50-state workflow within your CDK DMS. The strongest integrations and solutions available for your DMS are here right now. To learn more and get started, email a CVR representative at cvr-il@cvrconnect.com or call 800.333.6995 © 2024 CVR. All Rights Reserved. 22-4261 SPEED/ACCURACY No more rekeying of data BETTER PROTECTION Safer consumer data CUSTOMER SUPPORT The finest in the industry INTEGRATION Connect with your DMS We also work with the IADA to provide compliance and training webinars to keep your staff up to date. As the builders of the first EVR for use in Illinois over 20 years ago, not only have we learned how to do this right, we know from experience how to treat you right. That’s why we’re committed to innovation while continuing to provide the most complete account service and customer support in the industry.
How to Build a ConsumerFriendly Service Experience That Is Efficient By Sharon Kitzman, Dominion DMS Delivering a superior service experience is the goal of every business. To achieve this goal, dealers must build a service experience that is both efficient and friendly. Achieving this balance can be difficult, but with the help of some fantastic technology, it’s not impossible. In this article, we will explore the steps necessary to create a consumer-friendly service experience that is also efficient. The Check-in Process The check-in process is a crucial part of the overall customer service experience. It sets the tone for the entire service experience. As such, it is essential to get it right to deliver a truly consumer-friendly experience. By looking at other industries with check-in processes, we can learn from their operations and apply them to our own. My veterinarian reminds me of my appointment more frequently and in a fun and friendly way (think texts with dog emojis) than the appointments I have booked online for my car. The emojis might seem childish, but it makes me smile when I see the text, and I open the text to read the whole reminder. My dealership could do better with the appointment reminder process or the linkage between what I have already filled out online and the questions I am re-asked when I get into the service lane. This level of accessible customer service keeps me coming back. Similarly, the automotive industry could take a cue from the airlines and ensure they check in customers as quickly as possible. I know what you are thinking. Really, the airline industry? But take yourself back 10 years before the kiosks and bag drop, when everyone waited for a live person to help them. I remember my first kiosk experience with Delta, thinking, “This is never going to stick,” but now it is the rule, not the exception. The airlines invested in consumer apps to smooth processes and satisfy the desire for self-service. They also changed their operations, funneling the travelers to the kiosks the minute they walked in the door with a greeter. The key is providing an excellent check-in process, where your consumer can self-service the things that make sense, and your advisors use the data supplied by that consumer to check in quickly and efficiently. Waiting and standing in line is rarely an enjoyable experience and not one that consumers want to repeat. However, by providing a simple, efficient and friendly check-in process, you can start your service experience on a positive note. The Waiting Area One of the essential parts of creating a consumer-friendly service experience is ensuring your waiting area is as inviting and efficient as possible. There are consulting 19 Illinois Automobile Dealer News
Listen to our VUE Points podcast to stay up to date with news and current events related to the automotive software and retail industry. https://www.dominiondms.com/podcasts/ companies that do this full-time for the medical industry. For example, having a quiet, safe and clean environment is essential. Even something as simple as comfortable chairs, bottled water and snacks can make a world of difference. Complimentary Wi-Fi is always appreciated to allow your customers to stay connected with their busy lives. Additionally, providing timely information about what is going on with their vehicle and pushing video content to the consumer’s device can keep them in the waiting area and not coming back to the drive to ask additional questions. Consider giving customers the option to upgrade additional repairs while they wait. A big plate glass window for added transparency will reassure the customer about the work being completed on their vehicle, avoiding questions regarding the services. Having a comfortable and productive waiting area will help ensure customers have a friendly automotive service experience. Overcommunicate Clear communication with consumers is critical to providing a friendly service experience. Technology can be used to streamline the process, as well as provide transparency throughout the duration of the service. A communication system that keeps customers informed throughout the process should be a priority. From the time of check-in, customers should be given an estimate that makes them aware of the approximate time and cost of their services. The estimate should list all the suggested services and the rough cost for completing each service. Upon the customer’s review and agreement, the customer will sign the document, ensuring there are no surprises once everything has been completed. Prices should never be a surprise, so communicating with the customer is vital for transparency. Plenty of research shows most consumers prefer text as the best way to reach them because it allows for concise yet detailed updates that won’t take too much of the consumer’s time. Through the use of text updates, customers will have the ability to stay on top of their service and make any necessary changes that they may require. I have witnessed certain regionally based demographic tendencies — think South Florida — where text is not always best. You know your client base! Transparency is also vital to providing a consumer-friendly service experience. It is essential to allow customers to view updates to their service or inform them of any changes that could impact the service’s completion. Good news can be delivered autonomously, as it won’t require any action from the customer. Bad news should always be delivered in person so that the customer can fully understand and respond to the issue. Finish Strong Completing the service experience in a consumerfriendly way is just as important as the beginning of the process. Ensure that the bill does not surprise the consumer and take payment their way. Offer payment options such as online, in an app, through SMS or at the cashier station. Use technology to allow the technician to show and tell what repairs were made to the vehicle and ensure the consumer knows what was done and why it was necessary. The client that brought the car in for service may have a partner, not with them, who wants to understand what repairs were made. Lastly, follow up with the consumer one to two days after completing the service to ensure there are no lingering concerns. Following these steps will ensure consumers have a friendly and satisfactory service experience. Sharon Kitzman leads the launch and long-term growth of Dominion DMS. Previously, she managed the strategic direction and product development for Reynolds & Reynolds and Dealertrack. Her experience spans every area of dealership software development, including sales, marketing, product lifecycle management, process re‑engineering, OEM management, professional services, and customer services. Kitzman is a recognized leader in the automotive industry for her expertise in DMS technology. She received numerous accolades for her leadership, including Automotive News Top 100 Leading Women 2015 and 2020, Auto Remarketing Women in Retail 2021, and AutoSuccess Women at the Wheel 2021. She has a Bachelor of Business Administration from Ohio State University. 20 Illinois Automobile Dealer News
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Brushing Up on the OSHA Top 10 By Federated Insurance The Occupational Safety and Health Administration (OSHA) Top 10 list accounts for the most frequently cited standards following inspections of businesses and worksites by federal OSHA. This helpful list can be used as a guide to learning what common risks to watch out for and accessing vital information to help avoid devastating — and costly — work injuries or fatalities. Each year, OSHA posts their Top 10 violations after the month of April to allow the prior fiscal year’s inspection data to be finalized.1 In the fiscal year 2022, the Top 10 included: 1. Fall protection (C) 2. Hazard communication 3. Ladders (C) 4. Respiratory protection 5. Scaffolding (C) 6. Control of hazardous energy (lockout/tagout) 7. Powered industrial trucks 8. Fall protection training (C) 9. Eye and face protection (C) 10. Machinery and machine guarding Is Your Business Operating Safely? OSHA inspections across the nation are completed at both the state and federal levels. In 2022, over 69,000 OSHA inspections have occurred, resulting in more than 133,000 violations.2 Knowing that these risks exist — and that there are plenty of safety resources to help mitigate them — what will you do for your business to avoid becoming a part of these statistics? Federated Insurance® provides OSHA Top 10 information on mySHIELD® and offers access to additional resources, such as sample safety programs and training content to help identify and reduce worksite health and safety hazards. Reach out to your local Federated marketing representative for more information. This article is for general information and risk prevention only and should not be considered legal or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all risk of loss. Examples shown are for illustrative purposes only. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. Qualified counsel should be sought with questions specific to your circumstances. ©2023 Federated Mutual Insurance Company. Sources 1. https://www.osha.gov/ top10citedstandards. Top 10 Most Frequently Cited Standards. Accessed 11/20/23. 2. https://enforcedata.dol.gov/views/ oshaLab.php. Data Enforcement. Accessed 11/20/23. 22 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?® Brad Bartsch, bradley.w.bartsch@bofa.com Tony Garcia, anton.r.garcia@bofa.com Diana Zamudio, diana.zamudio@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. 5949042 12-23-0324 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.
Illinois Automobile Dealers Association 300 West Edwards Street Springfield, Illinois 62704 This Magazine Is Designed and Published by The newsLINK Group, LLC | 1.855.747.4003 BROWN & BROWN Overview Brown & Brown Dealer Services (BBDS) is an F&I performance company aimed at helping to build tailored solutions for today’s vehicle retailer. The complexities inherent to the F&I business demand a white glove approach with the flexibility to satisfy a variety of brands or markets. The BBDS network of providers helps ensure the proper F&I program is developed and executed to help maximize upfront sales and profits, provide a top-tier customer ownership experience and create wealth-building opportunities downstream. How We Can Help Our BBDS team is comprised of experienced and knowledgeable F&I specialists that have worked with dealers for decades. They are equipped with access to the industry’s top product providers, a top-rated training and development program and commercial insurance products to help you find solutions to fit your business needs. F&I Products • Flexibility to help fit your needs • Access to A-rated providers • Two in-house administration companies • Wealth-building opportunities on products Training Solutions • F&I Management Certification School • Learning Management Systems (LMS) delivering online training • Monthly webinars and video training archive • Ethics & Compliance Certification Participation Programs • Program selection based on your goals and objectives. NCFC, CFC, Retro or DOWC • Nationally recognized team that specializes in evaluating and configuring personalized solutions • No obligation evaluation of your current program Property & Casualty • More markets for your risks mean more choices to help meet your individual business and personal needs • Knowledgeable professionals to help identify your unique risks and find solutions to help protect your assets Employee Benefits • • Health Collective Purchasing Arrangement that includes a dedicated service representative to help you with premium savings, national and regional coverage and to DEALER SERVICES The Broker for the Dealer Custom F&I Programs That Help Deliver Results and Profits Brown & Brown Dealer Services 263 Shuman Blvd. • Naperville, IL 60653 | bbrown.com | (847) 612-9361
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