OFFICIAL PUBLICATION OF THE Illinois Automobile Dealers Association

2021 Issue 2


IADA President’s Message

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This story appears in the
Illinois Auto Dealer Magazine 2021 Issue 2

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Iwant to encourage each of you to become more involved in the legislative process to help our industry. Reach out to your legislators and advocate on behalf of our industry. These are the people who will make decisions that will have an impact on our industry and your dealership. If you don’t know who represents you, you know it is time to introduce yourself! We are already beginning to see a record number of legislative introductions which we are tracking and scheduled to testify on. Your grassroots efforts are more important than ever and will help us make sure the dealer voice is heard in our State Capitol. The following bills need your action now:

Senate Bill 58: Trade-in Credit Bill

Passed Out of Senate — House Contacts Needed
Senate Bill 58, which would restore the full sales tax trade-in credit, passed out of the Illinois Senate on March 10 on a vote of 53-0. IADA expresses our thanks to the Senate sponsor, Senator Tony Munoz. This is the second year in a row that Senator Munoz has sponsored this legislation after COVID forced the cancellation of most of last year’s session. Next, Senate Bill 58 will move to the Illinois House. Please reach out to your State Representative ASAP and encourage him/her to vote “YES” and restore the full sales tax trade-in credit.

HB3940 ­— Fair Labor and Consumer Protection Amendment

Passed the Labor and Commerce Committee – House Contacts Needed
The Warranty Work Reimbursement Bill would amend the Motor Vehicle Franchise Act (815 ILCS 710/) to define and expand upon how motor vehicle manufacturers are required to “adequately and fairly” compensate each of its motor vehicle dealerships for labor and parts associated with warranty work. The bill adjusts manufacturers’ calculations for time allowances, labor rates, and parts prices for warranty work.

HB 3940 passed out of the House Labor and Commerce Committee by a 21-2 vote. Please contact your House Member today and urge them to vote “YES” on HB 3940. We also encourage you to pass this along to your service technicians and suggest they contact their House Member as well.

Other important dealer Issues for 2021:

  • Defending the dealer franchise system and protecting consumers from challenges presented by manufacturers selling directly to the public and manufacturers that try subverting their sales and service agreements with dealers by rebranding product lineups. (Lawsuit filed against Sec. of State, Rivian and Lucid, support Volvo dealer protest).
  • Reversing the Military APR rate cap that impairs the sale of vehicle protection products like GAP waivers and service contracts.
  • Fighting to retain the retailers’ sales tax collection allowance.
  • Extending the out-of-state driveaway permit from 30 to 90 days and creating a dealer title to use when title reassignment lines are full.
  • Fighting attempts to cut the doc fee in half.

As you can see, your support of IADA is more important than ever! 


Peter J. Sander
IADA President

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