CATA Bulletin a Biweekly Newsletter
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CATA Bulletin a biweekly newsletter official Web site of CATA dealers Volume 102, No. 12 June 20, 2005 D’Arcy elected new association chairman Terry D’Arcy’s fellow di- 11-20, 2006. rectors of the Chicago Auto- D’Arcy, president of mobile Trade Association on D’Arcy Buick-GMC and June 16 elected him chair- D’Arcy Imports, both in man of the association for Joliet, leads a board of 18 the next 12 months. directors. Other board offic- The new board chairman ers are Vice Chairman Bob succeeds Arthur Kelly, who Loquercio (Elgin Toyota, becomes chairman of the Chicago Northside Toyota, Terry D’Arcy Arthur Kelly 2006 Chicago Auto Show. Elgin Hyundai), Treasurer D’Arcy will serve as co- Mark Scarpelli (Raymond Secretary John Phelan (Jack Jack Phelan Dodge-Isuzu- chairman of that show, Feb. Chevrolet, Antioch), and Phelan Chevrolet, Lyons, Suzuki, Berwyn). Incumbents roll to wins in balloting for CATA board of directors All six incumbents on the Land Rover, Mazda, Desmond Roberts, Mark Dave Taylor, and Casey eight-person ballot tallied Mitsubishi, Subaru and Scarpelli, Bill Sullivan, Wickstrom. enough votes to retain their Volkswagen franchises), and positions on the CATA board Arthur Kelly (Kelly Nissan, The June 13 golf outing included several specialty- of directors, in election re- Oak Lawn). hole contests on three courses. Unfortunately, no one sults announced June 13 at Steve Foley Jr. (Steve walked away with a Hole-in-One prize. Winners were: the association’s annual golf Foley Cadillac-Chevrolet- outing at Cog Hill Golf & Bentley-Rolls-Royce, Course 1 Country Club in Lemont. Northbrook) won a second Longest Drive John Kern, Kevin Spieles Returning for their third term on the board. Directors Longest Putt Denis Mindak and final three-year terms on can serve up to three, three- Closest to Honor Box Jeff Wulbert the board are Terry D’Arcy year terms, in voting open to Course 2 (D’Arcy Buick-GMC, all CATA dealer members. Longest Drive Jeff Hopkins, Greg Solk D’Arcy Imports, Joliet), Lee In addition to the six di- Longest Putt Lou Kole Drabek (Gateway Chev- rectors re-elected this month, Closest to Honor Box Ron Hopkins rolet, Chicago, Gateway Im- the CATA board includes Course 3 ports, Des Plaines), John Mary Dolan, Michael Longest Drive Bill Anderson, Steve Clugston Guido (Arlington Heights Ettleson, Bill Hartigan, Bill Longest Putt Joe LaBarbera Ford), Bill Jacobs (BMW, Hawkinson, Bob Loquercio, Closest to Honor Box Anthony Kessel Cadillac, Chevrolet, Kia, Kevin Mize, John Phelan, 2 CATA Bulletin June 20, 2005 Most surveyed dealers to pause for remaining 2005 holidays Most area dealers will observe the year’s remaining Findings for July 4, reported in the previous edition of holidays by closing for business, a recent CATA poll this newsletter, showed four sales departments would shows. work regular hours and another eight would work a Seventy-two dealers responded to the survey of their partial day. All other sales departments, and all service operations in various departments. See results below. and other departments, would be closed July 4. Holiday Regular hours Half/shortened day Closed Monday, Sept. 5 [Labor Day] Service Department 0 3 69 Sales Department 8 37 27 Other Departments 0 5 67 Saturday, Dec. 24 [Christmas Eve] Service Department 0 9 63 Sales Department 4 41 27 Other Departments 0 14 58 Monday, Dec. 26 [Christmas Day] Service Department 8 0 64 Sales Department 15 3 54 Other Departments 11 0 61 Saturday, Dec. 31 [New Year’s Eve] Service Department 10 9 53 Sales Department 20 45 7 Other Departments 11 14 47 Monday, Jan. 2 [New Year’s Day] Service Department 5 0 67 Sales Department 11 5 56 Other Departments 7 1 66 Marketplace GM/GSM Increased new-car gross profits with sales exceeding factory objectives. Stabilized used-vehicles’ profit per unit, reduced wholesale losses to zero. Formed motivational training meetings and desked deals, including turnovers. Peter Giannini, 847-231-4195. Résumé on file at the CATA. Finances workshop at CATA The CATA Bulletin is published by the Chicago Automobile Trade Association Financial issues facing dealerships will be reviewed at a 18W200 Butterfield Road Oakbrook Terrace, IL 60181-4810 half-day seminar presented by the CPA firm, Plante & 630-495-CATA [2282] phone 630-495-2260 fax Moran, at the CATA, beginning at 8 a.m. June 28. The CATA Bulletin is published and mailed every other Friday Topics include tax-saving ideas, F&I practices to avoid except during the Chicago Auto Show, when it is not published. lawsuits, health care cost-containment, maximizing benefits Listings of items for sale are subject to the approval of the for key employees, fraud controls, and a review of the CATA. Candidates for employment must submit a full résumé to the Editor. Gramm-Leach-Bliley Act. Review past editions or search by topic at www.cata.info/ To attend, call Plante & Moran at 847-628-8824. The Jerry H. Cizek III President, Publisher free session includes continental breakfast and lunch. Erik K. Higgins Editor, Director of Dealer Affairs June 20, 2005 CATA Bulletin 3 BBB-CATA ad review program, regulations studied at seminar The treatment of limited rebates ver- “If the average customer can’t get be given away unadvertised—because sus general rebates in vehicle ads took the rebate (Chrysler Financial bonus the giveaway inevitably would be men- center stage at a recent CATA seminar cash allowance, for instance), then you tioned, and the state advertising regu- on compliance with the Illinois adver- can’t put it in the advertised price,” lations consider such an oral represen- tising statutes, and common infractions Bernas said. tation to be an advertisement. of those statutes. However, referencing “0% financ- Other Advertising a vehicle’s price consis- ing” as a path to a price does not con- • Dealers may not use coupons in tently across media—and not offering stitute a limited rebate, Bernas said. connection with the sale of vehicles, Internet-only specials—was another The BBB does request deal jackets including pop-up coupons on a dealer’s topic reviewed by Dennis O’Keefe, the to confirm vehicle selling prices, he Web site. Coupons may be used for ser- CATA’s general counsel; and Steve said. vice work. Bernas, vice president of operations for Advertised price • It is permissible to target consum- the Better Business Bureau in Chicago. If a Vehicle Identification Number ers with poor credit, but dealer adver- About 60 dealers and advertising appears in an ad, then that vehicle must tisements must not use the word “bank- agents attended the May 25 seminar. not be sold for more than its advertised rupt,” or other terms that suggest bank- Bernas oversees the BBB-CATA Au- price. Further, the advertised price must ruptcy, like “bk.” tomobile Advertising Review Program, be consistent in all media. The popular • The attorney general is concerned established in 1996 as a sort of firewall Internet-only pricing strategy is a vio- about direct-mail promises of “We’ll between dealers and the Illinois attor- lation, courts have ruled, because not pay off your trade-in.” However, ney general. everyone has access to the Internet. “We’ll transfer your equity to your next Under the cooperative, the BBB no- To relieve themselves of having to car” is acceptable. tifies dealers whose ads don’t comply sell a vehicle today at a price adver- • Dealers who pledge in an ad that with the state’s rules on vehicle adver- tised months earlier, dealers should in- customers can “get the best price here” tising. If subsequent ads are not brought dicate a date in all advertisements when must substantiate that assurance with into compliance, then the attorney the sale price expires. comparisons to nearby dealers. The general’s office is notified. O’Keefe said dealers who sold a car more nebulous “get the best deal here” The dealer’s advertising agency also for more than its advertised price faced would not demand substantiation. is accountable to the AG’s office, re- treble damages from the attorney gen- The state’s rules on motor vehicle cent lawsuits have shown. eral. advertising were established in 1991 at The BBB issued 500 violation no- Gifts the urging of the CATA, to level the tices in 2004. Of those, 10 cases ad- Dealers can bestow gifts for shop- playing field for dealers. The BBB is a vanced to the attorney general’s office, pers who take a test drive, for instance, business organization, not a unit of and six resulted in lawsuits. Therefore, but gifts cannot be given on condition government. more than 95 percent of offending ads that the shopper buy a vehicle whose Besides monitoring print and elec- were made compliant after BBB no- price is negotiable. However, gifts can tronic ads, the BBB sends about 20 tices. be given with a vehicle purchase if the “shoppers” to area dealerships to con- Limited rebates gift is paid for by a manufacturer or a firm that any vehicle can be purchased General rebates can be subtracted dealer advertising association. for its advertised price. from a vehicle’s sale price in an ad. But “You can’t pick and choose when to Any tip the BBB receives about a limited rebates, which generally are not negotiate. You can’t say: ‘That car noncompliant ad is treated anony- available to every customer, cannot be. hasn’t moved. I’ll sell it for $15,000, mously, so the offending dealer cannot Similarly, an ad cannot depict a not negotiate, and throw in a gift,’ “ said learn who notified officials. monthly payment of, say, $400 if that Bernas.