Pub 5. 2015 Issue 3

22 AUTOMOBILE DEALER NEWS ILLINOIS www.illinoisdealers.com Accounting Woodward & Associates, Inc. ............................................ Page 2 CliftonLarsonAllen............................................................ Page 10 WIPFLi.............................................................................. Page 15 Attorney Julie A. Cardosi, P.C. ......................................................... Page 3 Consulting and Dealership Compliance Automotive Development Group...................................... Page 23 Reynolds & Reynolds....................................................... Page 19 Suntrust.............................................................................. Page 4 Dealer Management Computer Systems AutoSoft ........................................................................... Page 19 Automotive Solutions............................................................Page 7 Dealer Management Systems Auto/Mate Dealership Systems ......................................... Page 7 Resource Management Group (Portfolio)................... Page 12-13 Polen’s BuyBid Auto Exchange Inc.................................. Page 10 Energy Supplier AEP Energy...................................................................... Page 24 Financial Services Bank of America Merrill Lynch..............................................Page 5 Insurance Federated Insurance Companies .....................................Page 11 Zurich American Insurance Co. ....................................... Page 15 A Publication of the Illinois Automobile Dealers Association Vol. 23 No. 3 INSIDE: MotorVehicleDealerLegalLandscape 2015 IADALegislativeConference,ReceptionandBBQ Counselor’sCorner:DealerAdvertising In Illinois– Overviewof CompliancewithMotorVehicleAdvertisingRegulations o Trade-ins – Competitive conquest and owner loyalty rebates are acceptable (if they are properly disclosed), but guaranteed trade assistance is problematic. The advertising rules prohibit dealers from guaranteeing minimum values for customer trade-ins. It is recom- mended that you avoid advertising minimum trade-in values. o Credit Sales; Triggering Terms – If you advertise (1) a down payment, (2) a number of payments, (3) a period of repayment, (4) the amount of any payment, or (5) the amount of a finance charge, then you must also disclose: the amount of the down payment, the terms of repayment, and the annual percentage rate APR. Furthermore, if there is a balloon payment at the end of the loan term, it must be disclosed. Finally, youmust disclose the terms of a manufacturer’s tiered financing offer. Below is an example of a sample disclosure of a tiered financing offer. • Ad copy: 1.9% APR for 48 months • Disclosure: Financing subject to credit approval and o insurability. 1.9% financing for 48 months on o (vehicle make/model) in lieu of rebate to qualified buyers and ends (date). 48 months at ($ amount) per month per $ 1000 financed at 1.9% APR (level a, b, c) with 10% down on (vehicle make/model). Finance rate varies depending on credit worthiness of customer as determined by (captive finance company). Some customers will not qualify. o FTC – The Federal Trade Commission has stepped up its enforcement of motor vehicle dealer advertis- ing. NADA has issued a Dealer Guide to Federal Advertising Requirements at www.nada.org. Fortu- nately, compliance with the strict guidelines that the Illinois Attorney General uses has put most Illinois dealers on solid footing and well-prepared for federal scrutiny. • Planning an Offsite Sale? Be Sure to Contact CVR! If you plan to have an off-site sale, you should contact CVR with plenty of notice prior, as offsite sale can im- pact proper tax collection. CVR can quickly determine whether you will need tomake changes to your Electronic Vehicle Registration computer systems to reflect the new taxable location so that sales tax is collected at the correct rate and allocated to the correct unit of local government. REMEMBER - Even a location right across the street can have a different tax rate than your dealership if it is located in a business district or other special taxing district. n Information about how to report sales from an off-site loca- tion can be found on the Department of Revenue's website, www.revenue.state.il.us. CVR users who need assistance may contact their CVR Account n Motor Vehicle — continued from page 21