Senate bill 2037—repeal of sunday closing law—we oppose synopsis



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Date19.05.2018
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SENATE BILL 2037—REPEAL OF SUNDAY CLOSING LAW—WE OPPOSE
SYNOPSIS

For the 4th consecutive year, Senator Oberweis has introduced legislation to repeal the provision in the Vehicle Code that prohibits the sale of motor vehicles on Sunday.  This year’s version, Senate Bill 2037, allows for the sale of vehicles by dealers on Sundays if the dealer chooses to close his or her dealership on another day of the week.


BACKGROUND

In 1982 the Illinois Legislature enacted Sunday closing legislation for licensed automobile dealers as part of the regulatory process to obtain a dealer license.  This legislation was appealed to the Illinois Supreme Court, and was upheld as “part of a regulatory scheme” that regulates automobile dealers differently from other businesses.  Because the regulations were considered reasonable in promoting the public welfare as a part of the licensing of automobile dealers the language was upheld.


In June of 1984, the Illinois Supreme Court refused to reverse its decision, and in October of 1984 the U.S. Supreme Court refused to hear an appeal.  Repeal legislation introduced in the late 1980’s was defeated.
ANALYSIS

  • The purchase of a motor vehicle is usually the second biggest purchase consumers make in their lifetimes.  It’s a complicated transaction and approximately 80% - 90% of vehicles involve financing and verification of credit.  With most banks closed on Sunday it’s best for consumers and dealerships to complete the transactions when financial institutions are open and customers identity and creditworthiness can be verified. 




  • Reducing employee turnover is important for any business, especially new vehicle dealerships.  Being able to spend time with their families on Sunday is important to dealership salespeople.  This enables dealerships to hire quality people who want to make a career in the retail auto industry.




  • It’s not as if consumers are unable to browse dealer’s lots on Sunday.  In fact, many do, and love to look around on their own.  Most consumers also shop online and can view dealer inventories at any time of day or night.




  • Many dealer and manufacturer websites are now available 24/7, which allow customers to research vehicle prices and features online.  The average number of dealership visits by vehicle purchases has decreased from 4.5 to 1.5 as most customers now conduct the bulk of their research before walking into a dealership.  In fact, many customers like to browse dealership lots on their own on a Sunday while the dealership is closed.




  • Opening on Sundays would not increase the number of vehicles sold in Illinois.  Instead, SB2037 would increase dealership operating costs, thereby increasing vehicle prices and reducing sales.


COMMENTS

The Illinois Automobile Dealers Association representing 800 franchised new car and truck dealers and the Chicago Automobile Trade Association oppose Senate Bill 2037.  For further information, contact Joe McMahon at (217) 753-0220.

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