Chicago Automobile Trade Association

Autumn brings flurry of activity for NADA members

November 22, 2010
By Ray Scarpelli Sr., Metro Chicago NADA Director

NADA dealers are expected to be very busy over the next two months. First, there’s Child Passenger Safety Month in September. Dealers across the country will promote children’s safety by hosting child-seat checks and installations. Also in September, hundreds of dealers will attend NADA’s Washington Conference, where they’ll meet with their representatives and senators to discuss dealer concerns. And during Automotive Career Week, Oct. 24-29, dealers will introduce local teenagers to the ever-changing, lucrative world of dealership work.


In legislative and regulatory news:


  • After months of intense lobbying, an NADA-led industry coalition has secured passage of an amendment to the Internal Revenue Code that exempts from the retail federal excise tax highway tractors that are Class 5 (19,500 lb. GVW) and below if their gross combined weight with a towed vehicle does not exceed 33,000 lbs. The provision is effective for vehicles sold after Sept. 30, 2005, and should permit dealers to rely on the gross combined weight rating established by the manufacturer. It is part of the highway transportation bill, H.R. 3, signed in August by President Bush.
  • The aftermath of Hurricane Katrina has delayed until October any Senate vote to permanently repeal the estate tax. The body was first expected to take action this month. The NADA has flown dealers and ATAEs to Washington to meet with senators whose votes are essential to permanent repeal. The association encourages dealers to continue to contact their senators to urge them to support permanent estate tax repeal.
  • California Gov. Arnold Schwarzenegger signed a "Car Buyers’ Bill of Rights" that will take effect in that state July 1, 2006. The law imposes caps on dealer markups of wholesale interest rates on vehicle loans (2.5 percent markup will be allowed for loans of 60 months or less; 2.0 percent on longer loans). It also allows the consumer to purchase a contract cancellation option from the dealership that would permit the a buyer to return a used vehicle sold for less than $40,000 to the dealership within two days of the sale. California dealers will also need to separate costs of additional products and services.
  • The Federal Trade Commission issued a final rule that 1) increases the National Do-Not-Call registration fee from $40 per area code to $56 per area code, and 2) continues to exempt the first five registered area codes from the fee requirement. The fee increase took effect Sept. 1. Accordingly, dealers that register six or more area codes must pay the revised fee when they renew their current subscription accounts. Full text is at
  • The new FTC rule specifying the "format, type size and manner" of opt-out disclosures accompanying pre-approved offers of credit (a.k.a. prescreened solicitations) took effect Aug.1. Both a short-form and long-form opt-out notice must accompany the solicitation. Samples of notices, plus additional information, are at (requires NADA member log-in).


It’s not too late to prepare for this fall’s public outreach programs.


The NADA encourages dealers to host child safety seat inspection events at their stores in September, which is Child Passenger Safety Month. Dealers who held events last year reported large turnouts and positive community feedback.


  • An NADA tool kit with step-by-step guidance on hosting a child safety seat event, "Building Child Passenger Safety Awareness in Your Community," was mailed with the June issue of NADA’s AutoExec magazine. To view the tool kit and other NADA materials online, please visit
  • The NADA has teamed up with the safety group I’m Safe! to offer dealers discounted branded booster seat safety materials for kids. Visit or call 877/669-7233 for more information or to order.
  • The NADA also offers free materials for use at your child safety seat event, including postcard-sized guides to proper child seat use, consumer brochures on booster seat use and a video for showroom display. To order any of these materials, e-mail
  • Want to get teens in your community excited about dealership careers—and interested in working for you? Automotive Career Week is Oct. 24-29. The NADA has a free kit to help you reach out to middle- and high-school students. Order forms were mailed with the July issue of NADA’s AutoExec. For more career resources or to order a kit online, visit or call 800/252-6232, Ext. 2. 

In other NADA news:


  • It’s time to register for the dealer event of the year, the 2006 NADA convention and exposition, Feb. 11-14 in Orlando. William Bradshaw, the 2006 NADA chairman, will take office, and you’ll hear from 2005 chairman Jack Kain, BMW’s U.S. chairman and CEO, Tom Purves, and former secretary of state Colin Powell. There will be spectacular exhibits and dozens of workshops. Register online at Advance registration ends Dec. 19; after that, attendees must register onsite.


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