Pub. 1 2011 Issue 1

22 AUTOMOBILE DEALER NEWS ILLINOIS www.illinoisdealers.com 2011 Officers Chairman Mr. Tim Mooney / 217.253-4454 Tim Mooney, Inc. U.S. Highway 36, Tuscola, IL 61953 Vice Chairman Mr. Jim Lombardi / 815.476-2333 Lombardi Chevrolet Buick 901 E. Baltimore St., Wilmington, IL 60481 Treasurer Mr. Gary Knight / 217-443-6803 Carmack Car Capitol 3724 N. Vermilion, Danville, IL 61832 Secretary Mr. Mike Mangold / 309.467,2344 Mangold Ford Mercury, Inc. 1100 West Center St., Eureka, IL 61530 President Peter J. Sander / 217.753.0220 Illinois Automobile Dealers Association 300 W. Edwards, P.O. Box 3045, Springfield, IL 62708 Illinois Automobile Dealers Association 300 West Edwards Street, Springfield, Illinois 62708 T 217.753.0220 • F 217.753.3424 www.IllinoisDealers.com Consumers have unlimited access to information and so should the dealer. • Can the product calculate reciprocal tax, title, and registration fees at the point of sale for all 50 states so those dollars can be captured correctly and compliantly?  Reciprocal tax agreements between states are a legal obligation for a dealer. Once the customer pays their taxes and signs the buyer’s order, it is the dealer’s responsibility to disperse tax money accordingly. It is a natural assumption that a dealer pays their state’s sales tax on vehicles sold off their lot. This is not the case according to interstate commerce laws in which each state has its own law regarding tax collection. Similarly, laws regarding title and registration fees are managed by state and county governments.  Reciprocal agreements can also be very specific. Did you know that for customers from Massachusetts, you can only give tax credit for a trade-in if the dealership that is selling the vehicle is registered with the Massachusetts Department of Revenue? Let’s assume you are selling a $40,000 vehicle with a $10,000 trade in at a tax rate of 6%: you could potentially be losing $600.00 of dealer profit on one deal, or far worse, the entire sale for not knowing that one rule! • Will all inspection information be explained clearly?  In California, a Smog inspection is required 20 days after the sale of the motor vehicle andmust be completed before a license plate is issued. Your title department finds this information out once they get the deal from F&I 6 days later. After 4 days of trying to get a hold of your customer, they call you back only to inform you they will not be back in California for another 30 days. By the time the customer is back to their state, the deal will have already accrued late penalties of at least $289.00. Do you, the dealer, pay the penalty on your customer’s behalf, or give the customer a COD? (So long, CSI score…) • How easily can the product be incorporated into the dealer process?  Your out-of-state vendor should offer a processing center that handles the paperwork, which will save your title department fromhaving to learn how to process another state’s complicated applications. The product should be user-friendly and accessible to all staff and departments that have interest in the sale. Even with the aforementioned characteristics, there is no guarantee you will never have a “problem customer”. Heck, even Amazon.com gets an irate customer on occasion. But, it is important to know that there are solutions to help keep up with our tech-savvy generation, and every out-of state deal should not have to be a headache. A great source of references for nationwide title and reg- istration companies can be found at your dealer’s or trade association, your local tax collector, and most importantly, your local dealer friends. Q Formore informationcontact Susan LoMantoat Interstate TitleSolutions. 20 years as a Finance Manager and Director have led Susan to her position as Regional State Sales Manager with ITS. Her main focus is working with dealers to provide a seamless solution to the dilemma of out of state title and registration. She is fluent in “dealer speak” andprovides 7dayaweek trainingand support for her dealers. ITS Inc. provides awebbased solution for point of sale fee and tax calculation for all 50 states. All necessary paperwork and information is delivereddirectly through our website. Full service processing includes plates and registration back to the dealer. Call Susan at 561.859.4327 or e-mail slomanto@dmvnationwide.com. Q handle with care — continued