Business View Magazine | April/May 2022

79 BUSINESS VIEW MAGAZINE VOLUME 9, ISSUE 4 THE I LL INOI S AUTOMOB I LE DEALERS ASSOC I AT ION INFORMATION RESOURCE By forging relationships with the news media, IADA is an information resource, delivering a strong message that the retail automotive industry is one of Illinois’ most important economic engines. Illinois franchised dealers create over 92,000 jobs, generate $34.4B in sales, pay $2.5B in payroll and $2.3 B in state sales tax. 15% of all state and local tax revenue comes from dealerships. IADA serves as a prime source of information for members, delivering brief and concise IADA Bulletins and other correspondence to keep dealers abreast of important industry matters and provide necessary information concerning current laws and regulations affecting the automobile industry. DEALERSHIP MEMBER PROGRAMS Using the significant group buying power of Illinois automobile dealers, IADA provides very competitive in-house programs and has negotiated discounted rates for services offered by distinguished companies that are officially recommended by IADA. This business model keeps membership dues low and returns dividends to members in the form of lower prices on products and services they use every day. One of the premier programs that IADA delivers is the partnership program with CVR. With the IADA headquarters also across the street from the Illinois Secretary of State office (the state’s license and title branch), a large part of the IADA staff works on behalf of the dealerships to process and deliver their title transactions each day. This 21-year partnership with CVR has helped to revolutionize the title and registration process for dealers, and with the Association involvement and influence, R&D improvements and legislative/rule enhancements are continually made. BENEFITS OF THE FRANCHISED DEALER SYSTEM Motor vehicles are highly regulated products that require licensing, insurance and financing. These vehicles also must meet numerous environmental and safety standards. All 50 state legislatures have enacted laws governing the sale and servicing of cars, which is usually done by franchised new-car and -truck dealerships. These franchise laws not only protect consumers, but also govern the relationship between dealerships and manufacturers. Simply put, new cars and trucks are sold through franchised dealers because the business model benefits consumers, local communities and manufacturers. CONSUMERS BENEFIT Consumers benefit from the franchised dealership business model. When local dealerships of the same brand compete for a customer’s business, prices drop. Dealers also compete on financing, where they have access to multiple lenders nationwide that are all trying