IIADA Dealers Edge May 2013

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Illinois IADA Dealers Edge magazine for May and June 2013

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<ul><li><p>PRSRT Standard</p><p>U.S. Postage</p><p>PAID</p><p>DALLAS, TEXAS</p><p>Permit No. 2079</p><p>V i s i t u s a t w w w . i l - i a d a . o r g</p><p>PRSRT Standard</p><p>U.S. Postage</p><p>PAID</p><p>DALLAS, TEXAS</p><p>Permit No. 2079</p><p>DEALERS EDGEI LL IN O IS INDE PE NDE NT AUTO M O B ILE DE ALE R S A S S O C IAT IO N MAY/JUNE 2013</p><p>WHAT TO EXPECT FOR YOUR SMAL L BUS INESS</p><p> PRESENTING YOUR PORTFOLIO COMPLIANCE OVERDRIVE WASHINGTON UPDATE</p><p>THE AFFORDABLE CARE ACT ROADMAP:</p><p>INSIDE u</p><p>F E AT U R E S T O RY</p><p>Page 4</p><p>IL_0513.indd 1 4/17/13 4:48 PM</p></li><li><p> IL_0513.indd 2 4/17/13 12:33 PM</p></li><li><p> MAY/JUNE 2013 T H E D E A L E R S E D G E</p><p>3</p><p>w w w . i l - i a d a . o r g</p><p>MAGAZINE CONTENTS04 ACA Roadmap08 Presenting Your Portfolio12 Washington Update14 Expand Your Horizons18 Why Customers Leave Your Website22 Compliance Overdrive</p><p>Manheim recently released its 18th annual Used Car Market Report, which highlights 2012 industry trends and an outlook for 2013. A free download of the report is available for all NIADA Dealer Members at www.niada.com/dealers_edge.php</p><p>ChairmanRandy CraseCrase Auto Connection25355 E. Ames St.Channahon, IL 60410815-467-1807randy_crase@comcast.net</p><p>PresidentGordon TormohlenTormohlens Good People Automotive1800 S. Ihm Blvd.Freeport, IL 61032815-232-5543cookiebar@mwci.net</p><p>1st Vice PresidentAnthony FerraroPayless Motorsport13449 S. Pulaski RoadRobbins, IL 60472708-388-2300 agfauto@yahoo.com</p><p>TreasurerLori Chignoli-CoraChignoli Auto Sales1850 Essington RoadJoliet, IL 60485815-439-2233lori@chignoli.com</p><p>SecretaryEric NelsonNelson Automotive Inc.1801 S. BusseMt Prospect, IL 60056847-439-2277eric@heycars.com</p><p>Directors:Mark AlcornCarlyle Auto Sales1708 BroadwayRockford, IL 61104815-397-5010carlyle2005@aol.com</p><p>Paul GluchowskiTurner Acceptance4454 N. Western Ave.Chicago, IL 60630773-290-5002paul@turneracceptance.com</p><p>Melanie BrownChicago Car Auction2731 Belvidere RoadWaukegan, IL 60085847-662-0100melanie@chicagoauction.com</p><p>Amy Goodnight Lohman Companies 3901 15th St.Moline, IL 61266309-764-8331x220amy@lohman-companies.com</p><p>Alex TovstanovskyPrestige Motor Works Inc.8959 Hanslik CourtNaperville, IL 60564630-780-6439alext@myprestigecar.com</p><p>Janette PeakPJP Auto Enterprise3100 S. Douglas Springfield, IL 62704217-793-3552pjpautosale@comcast.net</p><p>For information on how to become a member of IIADA, please contact Bruce Eklund at 800-987-6627 or lilcheeper5@aol.com.</p><p>BOARD OF DIRECTORSNATIONAL INDEPENDENT AUTOMOBILE DEALERS ASSOCIATIONWWW.NIADA.COM WWW.NIADA.TVNIADA HEADQUARTERS: 2521 BROWN BLVD. ARLINGTON, TX 76006-5203 PHONE (817) 640-3838FOR ADVERTISING INFORMATION CONTACT: TROY GRAFF (800) 682-3837 OR TROY@NIADA.COM.The Dealers Edge is published bi-monthly by the National Independent Automobile Dealers Association Services Corporation, 2521 Brown Blvd., Arlington, TX 76006-5203; phone (817)640-3838. Periodicals postage paid at Dallas, TX and at additional offices. POSTMASTER: Send address changes to NIADA State Publications, 2521 Brown Blvd., Arlington, TX 76006-5203. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of The Dealers Edge, the Illinois Independent Automobile Dealers Association, or the National Independent Automobile Dealers Association. Likewise, the appearance of advertisers, or their identification as members of IIADA or NIADA, does not constitute an endorsement of the products or services featured. Copyright 2013 by NIADA Services, Inc. All rights reserved. Visit the NIADA Web site at www.niada.com. STATE MAGAZINE MGR./SALES Troy Graff troy@niada.comEDITORS Jennifer Carman jenniferc@niada.com </p><p>Andy Friedlander andy@niada.com ART DIRECTOR Christy Haynes christy@niada.comPRINTING Nieman Printing</p><p>FOR INFORMATION ON HOW TO BECOME A MEMBER OF IIADA, PLEASE CONTACT BRUCE EKLUND AT 800-987-6627 OR LILCHEEPER5@AOL.COM.</p><p>WHATS NEW</p><p>ADVERTISERS INDEXAlly .......................................................15Auto Auction of New England ................ 11AutoManager, Inc. .................................17Berkshire Risk .......................................21DealerCenter ....................................... 20Dyer Auto Auction ................................. 18Insurance Auto Auctions Inside Front CoverManheim Minneapolis .............................5Manheim Pennsylvania ............................7Manheim.com .............. Inside Back CoverNextGear Capital .................................. 13Protective ...............................................9United Acceptance ................................19VAuto ......................................Back Cover</p><p>IIADA OFFICE</p><p>NIADAs Commitment to the MilitaryOn July 27, 2012, NIADA CEO Michael </p><p>Linn and president Chris Martin submitted a statement to the U.S. House Armed Services Committee and Veterans Affairs Committee, which were holding joint hearings on assisting military service members in their return to civilian life.</p><p>In the statement, NIADA pledged its support to the effort and laid out several ways the association can help the military. One of them a video to help military personnel with the car-buying process is now complete. The video, Car Buying Tips for Military Service Members, is available for viewing at www.autoconsumer.tv.</p><p>Heres the text of NIADAs statement:Mr. Chairmen and members of both </p><p>committees, we are Chris Martin, president of the National Independent Automobile Dealers Association (NIADA) and owner of E-Z Auto near Fort Bragg, North Carolina, and Michael R. Linn, NIADA chief executive officer and Vietnam veteran. On behalf of the association, we appreciate the opportunity to submit this statement for the record.</p><p>The National Independent Automobile Dealers Association represents more than 17,000 members who are connected to the automobile industry in some form or fashion, but primarily independent dealers who own dealerships across America that are not affiliated with a manufacturer.</p><p>They are businessmen and women who subscribe to a Code of Ethics that emphasizes honor, integrity and fair dealing. More than 40 percent of these dealers have been in business for more than 20 years, and almost 50 percent have five or fewer employees. They are the small car store that survives in the best of times and the worst of times, because they are a part of their communities as fathers, mothers, Better Business Bureau members, Chamber of Commerce members, city councilmen, school board members, churchgoers, youth organization sponsors and coaches, and task force members who look for ways to make our cities and our towns better places to live.</p><p>If they are fortunate enough to have a military installation near their business, they strive to reach out and include the active personnel and </p><p>the veterans who call our communities home. The military residents in turn volunteer for Special Olympics, literacy councils that provide free tutoring, school field days and Relay for Life, to name just a few.</p><p>NIADAs leadership is committed to these service members and the citizens within the communities they represent. Our mission states that as a not-for-profit organization we will anticipate, recognize and respond to current and future issues and needs of the independent motor vehicle industry and the consumer. The NIADA Foundations goal goes further, pledging to improve the used motor vehicle industry by informing consumers, educating dealers and training individuals and companies associated with the industry.</p><p>The National Independent Automobile Dealers Association stands ready to use our current resources, including our education and training staff, state association directors many of whom are veterans and our Automotive Consumer Television Network, which is available to anyone via the Internet at http://niadatv.com/autoconsumer/, to address the needs of car-buying military personnel active or retired.</p><p> PLANS INCLUDE:1. Production of a simple to understand video that explains the car-buying process for active service members or those returning to civilian life. It will be similar to the one NIADA produced several years ago targeting the teenager buying his/her first car. That video is currently available at the ACT website.2. Coordinate a speakers bureau with our state associations, tapping local dealers who will serve as resources to conduct safe car-buying seminars for local military installations.3. Provide NIADA education and training staff who will work with state associations in addressing proper military protocol at military installations.</p><p>In closing, NIADA stands ready to assist all service members, including those returning to civilian life, the House Armed Services Committee and the House Veterans Affairs Committee any way we possibly can.</p><p>Thank you. </p><p>INSIDEu</p><p>IL_0513.indd 3 4/18/13 11:37 AM</p></li><li><p>T H E D E A L E R S E D G E MAY/JUNE 2013</p><p>4</p><p>w w w . i l - i a d a . o r g</p><p>C O N T I N U E D O N PAG E 6</p><p>The Patient Protection and Affordable Care Act (ACA), dubbed Obamacare by many, was signed into law on March 23, 2010, with the intent to reform the health care industry and provide affordable health coverage for more than 40 million uninsured Americans. </p><p>Under the ACA, every legal resident of the United States who is not already covered by Medicare or an employer-provided health care plan will be eligible to purchase coverage through an online health insurance exchange.</p><p>Today, smaller businesses are much less likely to offer health coverage to their employees than larger companies. In 2011, according to the Kaiser Family Foundation, 57 percent of small businesses with 50 or fewer workers offered health benefits to employees, compared to 92 percent of businesses with 51 to 100 workers, and 97 percent of businesses with 101 or more workers.</p><p>Because of that, some provisions of the ACA will have a larger effect on small businesses, and their employees and families.</p><p>Expectations of the impact on small businesses are mixed. Some anticipate employees hours being cut, costs being passed on to consumers or shareholders, a reduction in hiring and more out-of-pocket costs for larger businesses.</p><p>Others see benefits for small businesses and their employees. For example, the ACA rewards employees at small companies by subsidizing their purchase of health insurance.</p><p>According to Casey B. Mulligan, economics professor at the University of Chicago, since those employees cant take the subsidies with them if they move to a large company, they are in effect, subsidies to the small businesses themselves, helping them compete more cheaply in the market for employees.</p><p>Some provisions of the ACA are already in effect. Others will begin in 2014 and beyond.</p><p>As with any major change in policy, the prospect of what the ACA entails can be overwhelming for small business owners </p><p>with limited resources.So what does the ACA mean for your </p><p>business?</p><p>PLANNING YOUR ROUTE: DETERMINE THE SIZE OF YOUR ORGANIZATION</p><p>The ACA specifically exempts small businesses with fewer than 50 full-time equivalent (FTE) employees. By some estimates, that means more than 90 percent of businesses will be not be subject to the Employer Shared Responsibility provisions of the ACA. </p><p>Before you can begin to assess the impact on your business you must determine the size of your organization.</p><p>Sounds simple, right? Well, not entirely.The ACA defines a full-time employee </p><p>as an individual working at least 30 hours per week on average. However, for the purposes of calculating your organizations size, you cant simply count the number of full-time employees part-time employees are also factored into the equation.</p><p>In essence, you have to add up the hours of part-time employees. So, for example, 100 half-time employees equates to 50 FTEs. Similarly, 40 full-time and 20 half-time employees would also be considered equivalent to 50 FTEs.</p><p>If you own more than one company, in most cases, that will also be taken into account. Its a bit like an umbrella: If an entrepreneur owns five businesses and each business has 10 FTEs, together they are considered a large business with 50 FTEs, and all five businesses are subject to the Employer Shared Responsibility provisions even though individually they would be exempt.</p><p>Obviously, determining FTE counts will be more complex for some businesses than for others. Any businesses that fall close to the 50-employee threshold would be best served by working closely with their accountants to ensure counts are accurate rather than risk penalties for inadvertently being over the threshold.</p><p>While the Employer Shared Responsibility provisions do not take effect until 2014, the provisions will be applied based on employee counts from 2013, so its important for businesses to start planning now.</p><p>OUTSIDE YOUR FRONT DOOR: WHATS ALREADY IN PLACE FOR 2013</p><p>Several provisions of the ACA are already in place, or will become effective in 2013. Those of most importance to small businesses include:</p><p>Grandfathered group plans: Small businesses with insurance plans that were in place prior to March 23, 2010 may keep their current plan. According to the Kaiser Family Foundation, approximately 72 percent of businesses with 100 or fewer workers had at least one plan grandfathered under the ACA in 2011. Those plans are subject to fewer requirements when it comes to coverage levels and access.</p><p>Under the grandfather provision, companies are even able to change insurance carriers, provided employee costs and benefits remain mostly the same.</p><p>Grants for wellness programs: Certain small businesses that did not have a workplace wellness program in effect as of March 2010 are eligible for grants to start one.</p><p>Additional Medicare tax: The additional medicare tax is a 0.9 percent tax increase that applies to an individuals wages, Railroad Retirement Tax Act compensation and self-employment income above a threshold amount based on the individuals filing status. Small businesses making less than $250,000 in taxable profit are exempt from the tax increase.</p><p>Small Business Health Care Tax Credit, phase one: The Small Business Health Care Tax Credit helps certain small businesses and small tax-exempt organizations particularly those with low- to moderate-income employees afford the cost of covering their employees.</p><p>From 2010 through 2013, if your company has fewer than 25 FTEs with average annual wages of less than $50,000 and you purchase health insurance for your employees, you might be eligible to receive a credit of up to 35 percent of your contribution toward employee health insurance premiums. </p><p>Note: In March 2013, as a result of sequestration provisions, the refundable </p><p>A S W I T H A N Y M A J O R C H A N G E I N P O L I C Y, T H E P RO S P E C T O F W H AT T H E ACA E N TA I L S CA N B E OV E RW H E L M I N G FO R S M A L L B U S I N E S S OW N E R S W I T H L I M I T E D R E S O U RC E S .</p><p>WHAT TO EXPECT FOR YOUR SMAL L BUS INESS</p><p>THE AFFORDABLE CARE ACT ROADMAP:</p><p>F E AT U R E S T O RY</p><p>IL_0513.indd 4 4/17/13 12:33 PM</p></li><li><p>IL_0...</p></li></ul>

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