National Automobile Dealers Association (NADA)  / JD Power Valuation Services

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A group of car dealers wanted to be represented jointly, partly to improve the view of the government's cars. 30 dealers went to Washington and gathered at the Willard Hotel. By convincing the governments that a car is not a luxury product but that they were crucial to the economy, the factories had to be converted for war production and they succeeded in lowering the proposed luxury tax from 5% to 3%. These businessmen realized that the 15,000 dealers in the country should be continuously represented in Wachington. Two months later, on July 17 and 18, 130 dealers gathered in Chicago to select some managers. George W. Brown, a Milwaukee dealer, was its first president. Founding the association cost exactly $120.71. These were mainly costs of telegrams, telephone calls and postage.  Almost simultaneously with the founding of the Kelley Kar Company, NADA was founded in 1917. Similar to the Dutch BOVAG.

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NADA barely survives the recession. For the first four months of 1932, after deducting the expenses of %20,879, the association had only $837 left. In May, the general manager advised the board, based on the number of renewals of the subscriptions  and the  Members' payment arrears that major changes had to be made because otherwise they would not make it to July. The secretary had to find a new home that wouldn't cost more than $50 a month. Activities were kept to a minimum and for the rest of the year only a secretary manager and a stenographer were on the payroll. The rest were fired. Just one year later, everything was different. In February 1933, there were 2,200 leather workers, most of whom were in arrears. In early 1934, however, there were already 20,000 active paying members and by the end of the year even 30,000. A motoring journalist speaking at the 1934 meeting said that such a great improvement  unbelievable in such a short time. After all, the average dealer was like this  close to the gates of hell that he could smell the brimstone. The extremely rapidly changing market provided a glimpse into the future.

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New Deal

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The turnaround was the result of the New Deal's National Recovery Act and the new Code of Fair Competition for the automotive trade. After the mandate of industry codes was announced, the association became very busy developing proposals and rules and visiting dealers across the country for suggestions and support.  Factory relationships and dealer profitability were important throughout the 1930s  subjects. Until Prohibition was lifted  in 1933  the NADA lobbied on behalf of dealers who suffered losses when cars on which they had unpaid liens were confiscated by the IRS for violating alcohol laws. NADA also launched a publicity campaign urging customers to buy new cars. In 1935 with the Speakers Bureau announced Service. This agency had to list dealers  help with free speakers for the meetings.  

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NADA also began regular, confidential investigations into sales of new cars and equipment, used cars, reconditioning, parts and equipment, service, income tax, commercials, etc.  to name dealers' problems  and quantify. A survey of 359 dealers at the time showed average gross profit per new car sale of $171.87 (20 percent); direct cost of $89.09 per sale,  indirect costs of $34.45,  and an operating profit of $48.33 at an average price per vehicle of $853.17. These surveys still exist today.

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T he 25th meeting was attended by 2,300 members. With the US's participation in World War II, the conversation turned to survival, how to deal with fuel rationalization and the government's freezing of vehicle deliveries. A study from that time showed that car dealers were hardest hit by the wartime adjustments. The NADA lobbied to mitigate the effects of rationalization and other war-related rationalization. It was a difficult year. The public did not buy cars for fear that they could be seized and dealers did not buy used cars because they feared their stocks would be frozen. The sale and delivery of new vehicles has already been banned. Only customers who placed their order before January 1, 1942 were allowed to receive their new car. Sales plummeted further due to fuel rationalization. Roosevelt brought relief by enacting a law that allowed dealers to sell vehicles to the government. The January 1942 newsletter warned that the war with Japan could eliminate the American automobile from that country forever. The article noted that business had been declining for years and the last foreign manufacturers may now consider relocating their factories now that war has broken out. Japan was already producing more than they needed.  

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The military asked the NADA to help recruit mechanics for the so-called NADA battalions. The 950 officers and 26,000 men saw action in Tunisia, Italy, Germany and during D-Day in Normandy. Their mechanical skills were necessary to keep the wheels of the war machine turning.  Many dealers had to deal with staff shortages and women were recruited. One dealer said 45 women responded to an ad for a mechanic. Girls and grandmothers, some came in fur coats and some with a child on their arm.

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The Office of Price Administration (OPA) advised citizens to avoid unnecessary repairs and to preserve cars for longer. It took a lot of ingenuity from the  dealers to stay alive. An Indiana dealer sold radios, refrigerators, ovens, and toys at Christmas. Amazingly, a post-war NADA poll found that 85% of dealers could have kept their heads water.

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In 1944, citizens had to apply to the federal government for a​​ of the country's remaining 60,000 new cars. Washington announced that no new cars could be built until the war was over and turned its attention to used cars. The NADA lobbied vigorously against rationing and price caps for used vehicles, warning that they were creating a black market and destroying the only remaining business activity of dealers. The guide resized to include both average prices and OPA ceilings. With used vehicles gaining in importance during and immediately after the war, subscriptions rose from 28,000 in 1945 to 50,000 a year later.

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After the war, car production resumed. But two-year waiting lists for a new car were not uncommon and NADA expanded its public relations department  to suppress the public perception that dealers were getting rich from the shortage. NADA urged its members to be responsible and distributed a pamphlet "The Truth About the Current Automotive Situation."

The resumption of local auto shows in 1949 signaled that life was back to normal.

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In the early 1950s, the country had to prepare for the Korean War and dealers braced themselves for another stop of car production. Price ceilings were again set. To cover the cost of arming the Americans, the luxury tax was raised to 7%. The NADA countered this because the average price had now reached $2,200. Despite the association fighting for the increase to be reversed after the war, it was even increased to 10%. The NADA emphasized that the car was still essential for the economy and that it was wrong that no luxury tax was levied on, for example, yachts. Washington restricted steel supplies to industry, closing factories and laying off people. In 1952, maximum production numbers were even set. There were 11 players left. GM, Chrysler, Ford, Studebaker, Nash, Hudson, Packard, Kaiser-Frazer, Willys, Crosley and Checker.

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In the meantime, NADA launched a campaign urging dealers to be especially ethical. The public did not trust the dealers, which is no different today. It was thought that the profits were too high. The NADA actually showed that less profit was made than, for example, a plumber or baker.  

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Dealer-manufacturer relationships suffered from the recession of the early 1950s. Manufacturers tried to drastically curb car sales with drastic measures, which caused many dealers to go bankrupt. With the full support of NADA, dealers eventually appealed to Congress to mandate fair play, and Congress recognized the manufacturers' abuses. The 1956 Dealer's Day in Court Law allowed dealers to sue an automaker and seek damages for the manufacturer's failure to "act in good faith in performing or complying with any of the

terms or conditions of the franchise'.

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Overproduction

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After the Korean War, employment in the United States was at an all-time high. Detroit had many production records  and for the first time, dealers were concerned about too much of a good thing. A NADA official called the specter of overcapacity "a hydrogen car bomb hanging around all dealers." NADA President J. Saxton Lloyd said in 1952 it was unfair to dealers to be forced to list as many cars as possible  or to process. One can never sell so many, or  we have to give them all away with practically no gain or perhaps at a loss.

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The NADA helped establish the Price Labeling Law in 1958 that required manufacturers to place window stickers on cars with a suggested retail price for the car, options, accessories, shipping costs, transportation and taxes. This Moroney sticker helped consumers regain confidence in the auto industry. Senator Mike Monroney was the "father" of this law.  

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NADA sought improvements in dealer-manufacturer relationships and lobbied the government to abolish the luxury tax  of 10 percent on new cars and reinstatement of the tax deductions for depreciation and capital gains for vehicles owned by companies, which the IRS had banned in 1948. NADA formalized ties with local and national dealer organizations, constructed an eight-story building in the nation's capital, and initiated a nationwide workshop program, truck advisory committee, and retirement plan for dealers and their families. NADA was also active in several public service programs, including a national, nonprofit voting campaign, highway safety programs, and loaning cars to high schools for the new driving school classes.

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At the end of the 1950s, there were 6 major countries producing cars: USA, Great Britain, France, Germany, Italy and Sweden. Japan was added to this in the early 1960s. The American manufacturers are selling down and some even went bust like Studebaker. New safety legislation  felt  everything from car design to showroom sales tactics. The first laws to set limits on vehicle emissions were introduced in 1965. California was the first to mandate "anti-smog equipment" on cars, and the rest of America eventually followed suit.

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In 1968 Frank McCarthy began his 33-year stint with NADA, first as executive vice president and then president. McCarthy would make an effort for  important issues such as retirement and insurance for dealers and their employees, as well as management training for dealers. NADA also spent a lot of time testifying about various proposals in the late 1960s and 1970s. As soon  When proposals became law, such as the Truth in Lending law of 1968 or other regulations, NADA employees worked to explain the new laws and regulations to dealers.

Other Legislation That Favorably Affected NADA in the 1960s  was a mechanic licensing bill that NADA closed with a proposal to establish its own licensing program instead and a bill that would protect dealers from taxing rights on vehicles that were traded in  or were bought. With the  prospects of recalls plaguing the industry in the coming decades, NADA testified before the Senate Subcommittee on Antitrust and Monopoly, which clarified factory warranties. This helped to resolve issues between the customer  and soften the dealers.

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With the increase in import vehicles  trade became an item  at the government  and elsewhere. In 1970, NADA announced it was opposing a trade law that would have imposed quotas if imports  reached a certain percentage. However, the Clean Air Act of 1970 and the energy crisis of 1973 had the biggest impact on auto sales. By 1974  did the sales of medium-sized cars slump so much  that the NADA placed advertisements to promote sales. NADA supported voluntary energy-saving measures rather than mandatory measures such as fuel taxes  and rationing. Nevertheless, CAFE (corporate average fuel economy) standards were set in 1977 and a gas guzzler tax was introduced the following year. 

One of the NADA Backed Laws  true  benefited both consumers and dealers  was the anti-odometer modification law in 1972 that banned the sale of devices that could alter the mileage and operation of vehicles with disconnected odometers. In 1986, NADA was working on another numerator law that would  registration of the odometer reading of a vehicle required if  it changed hands. Although it may seem strange, people promoted  in 1972 an image campaign with the NADA Blazer program. Many car manufacturers advised  dealers to buy blazers for their employees. Dealers could purchase blazers through NADA.

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By 1975, NADA had outgrown its building in downtown Washington, DC, and moved to its current headquarters in suburban Virginia. In the following years, a dealer election committee, an emergency medical service program, an ambassador program and commemorative funds will also be set up. In 1978 a campaign was launched to gain public support for cars and to counter efforts to restrict their use. Funded by NADA and the big three, the first International Freedom of Mobility award was given to the author of "The War Against the Automobile" Barry Bruce-Biggs. In 1979 the campaign 'You can if you plan' was launched. A campaign informing consumers about the prospect of fuel scarcity.

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NADA data published

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Although the NADA has previously published facts and figures about the economic impact of new car and truck dealerships, the association did not publish its first edition of NADA Data until 1979. The annual report quickly became a popular mainstay for analysts, the media and other interested parties.  and included  monthly reports on dealer financial profiles and sales trends.  Several NADA departments and initiatives were added during this  decade. Among other things  the American Truck Dealers Division (1970), the industrial relations division (mid-1970s) to work with automakers, and the NADA Legal Defense Fund (1975) to provide financial and legal assistance. The Dealer Academy was launched in 1979, the same year it moved legally  staff to a building of the  NADA that  only two blocks from the US Capitol.

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emergency handles

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By 1979, the  car dealers gote  problems by  sky-high interest rates  and double-digit inflation. NADA urged President Carter to rein in oil prices  and called for emergency measures from automakers, such as cash bonuses for dealers with  bad selling  models and to help with cash flow problems caused by over  stocks.  In 1980, NADA asked Carter to take action to boost sales of new cars and trucks. In response to NADA proposals, Carter increased the loan guarantee fund for small businesses like the  dealers so that 95 percent of dealers were eligible.  In 1984, NADA conducted its first dealer attitude survey, in which dealers rated automakers on criteria such as OEM interaction and policy. The semi-annual surveys quickly gained influence, from curiosity to automaker CEOs meeting directly with dealers and NADA to discuss the results.

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Rules, rules and more rules

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After one of the most complicated regulatory odysseys in modern history, the Federal Trade Commission (FTC) has issued a rule requiring dealers  to a​​ put a sticker on used cars that  customers tells  whether the car is sold "as is" or with warranty  along with other information. The first legal draft was proposed in 1976 and the NADA fought  against mandatory inspections and warranties for five years under the guise of "vague, ambiguous and unworkable." After NADA sued the FTC, a watered-down version of the rule was issued in 1984, with no provisions for mandatory inspection and disclosure of the condition of more than 50 parts and owner history and how the vehicle  was used.  At the 1986 NADA convention, new president Jim Woulfe announced "Project 2000," a panel  that the future of the franchise system would go  study. This panel received input from dealers, ATAEs and others to look at franchise contracts, customer satisfaction, employee training, dealer-manufacturer communication, computer technology and data. The Project 2000 panel released several reports on industry trends to help dealers plan for the future.   In the 1980s, for the most part, dealers had challenges posed by concerns about hazardous waste handling and  leaking underground storage tanks, money laundering rules requiring reporting of cash transactions over $10,000 and endless tax battles. But most of the dealership activity in Washington revolved around defining regulations.

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A new millennium

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Many of these same problems continued into the 1990s. There were new rules for the Clean Air Act, including higher proposed CAFE (consumption standards) standards. The NADA sued the EPA (environmental protection) because of their  ozone standards and for allowing the northeastern states to adopt California's emissions standards, thus mandating sales of electric cars. The EPA went 'Superfund'  stricter enforcement  (a law passed in 1980 regarding a US government program designed to fund the remediation of sites contaminated with hazardous and contaminants)  with a "cradle-to-grave" liability for mishandled finished  oil.

The NADA also advocated listing a scrapping status on the vehicle registration certificate,  because both dealers and consumers unintentionally  buyers of these types of vehicles  goods. They were also successful in lowering taxes  on heavy trucks.

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Tax battles continue

At the same time, the issue that led to the creation of NADA in 1917 was back in 1990 with a luxury tax that applied to vehicles sold for more than $32,500. Despite low expectations, NADA scored a huge victory in 1996 with the  elimination of the tax. NADA leaders were even invited by President Bill Clinton to a

signing ceremony on the White House lawn.

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It  improve the dealer's image

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In 1998, the NADA along with  A coalition of automakers called Automotive Retailing Today (ART) to improve the way the public and media view the auto industry in general and dealers in particular. because of  various hidden camera reports  who falsely attacked dealers earlier in the decade,  NADA had already launched a sales certification program to improve image  problems and the high turnover of sellers. NADA also kicked off a "Stamp and Steer" PR campaign with four-time Indy 500 winner Al Alser on the use of ABS. By the end of the decade, some of the more pressing issues for dealers were dealer consolidations, the Internet, and the millennium craze called Y2K.

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Ford and GM wanted to sell directly to consumers, but those plans,  including the online sale of cars, were destroyed because the legislation did not allow it. NADA then created a national portal to link dealer websites. As Ford's Blue Oval and other dealer programs became a problem, NADA resisted efforts by automakers to impose unfair charges on dealers.

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Oldsmobile was discontinued  in the autumn of 2000, after sales had plummeted. NADA mandated  GM only up to compensation, as well as low or no cost loans  and assistance from GMAC (GM's financing division). A few months later  NADA chief Frank E. McCarthy passed away. After a nationwide search, Phillip D. Brady became NADA president, and on September 10, 2001, there was a dedication ceremony to name the NADA headquarters, the Frank E. McCarthy Building.

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Terrorists strike

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NADA was in the midst of its 26th annual Washington meeting  when the next day terrorists hit the World Trade Center and the Pentagon. Due to the uncertainty following the 9/11 attacks and the closure of airports, many dealers and NADA personnel spent days at the Capital Hilton in Washington, D.C.  The National Automobile Dealers Charitable Foundation has quickly established a survivor relief fund to help meet the educational needs of the victims' families.  Despite the shock of the attacks, NADA went ahead and took a big win when voluntary arbitration in franchise contracts became a legal requirement in 2002. People also went  partner with NHTSA (safety traffic agency) to promote child safety seat events at dealerships.

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As part of financial reform legislation passed in 2010 after the crisis, NADA supported an amendment proposed by the dealer.  funding protects against further regulation. As a result, Congress quickly passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, which excludes dealers from the new Consumer Financial Protection Bureau (CFPB).  But the following year, NADA had to defend dealer financing in a series of talks with  the Federal Trade Commission. Despite the dealers being under heavy fire,   the talks did not result in new rules.

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Fair Compliance with Credit Laws

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In 2013, the CFPB pressured auto financiers to change the way they compensate dealers for arranging financing, which the NADA and the National Association of Minority Dealers (NAMAD) say would end opportunities.  consumers to negotiate a lower interest rate. NADA continued to put pressure on the CFPB over its methodology. NADA, along with the American International Automobile Dealers Association and NAMAD, also released the Fair Credit Compliance Policy and Program to  of dealers to comply with fair credit laws.

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NADA went into battle with the  CAFE rules and calculated for how the proposed new consumption standards  would increase vehicle prices. NADA pushes for legislation to address the cost increase due to dual regulations from the NHTSA, the EPA, and the State of California  and made short shrift of a government plan that would require dealers to receive a tax break  for electric vehicles and then a  require compensation from the IRS.

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New events launched for dealers

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During the second decade of the 21st century  NADA hosted its first annual Auto Forum NY, with dealers, automakers, analysts and other industry experts discussing the latest economic trends impacting the economy.  businesses  discuss. NADA then began what is now the Auto Conference LA, with a special focus on the California market. Phil Brady, then NADA president, left the association in 2012 and was replaced by Peter K. Welch, who had served as president and CEO of the California New Car Dealers Association since 2003. Welch is now also CEO of NADA. In order to streamline operations, NADA sold its pension division and 'Used Car Guide' in 2015. NADA has also embarked on a major rebrand, with new logos for NADA and ATD. The following year, new vehicle sales reached a record 17.55 million!

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JD Power Valuation Services

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NADA reported in  May 2015 that they sell the Used Car Guide to JD Power, the deal should be finalized in Q3 of 2015. JD Power would keep the old name in the transition phase before switching to its own name.  Today the JD represents Power Valuation Services (formerly NADA Used Car Guide)  16,500 new car and truck dealers. Because they have been able to collect data since the early 20th century, they have the largest database of automotive transactions  and has an enormous amount of market knowledge. People want to be unbiased, but in the beginning they were very dependent on information  from dealers. Since the 1930s, manufacturers have been encouraging dealers to provide NADA with sales information.  They also started checking the autotenticity of the data and appointed statisticians and economists to confirm the soundness of their analysis methods.  

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NADA is always looking to the future. A recent study, The Dealership of Tomorrow: 2025, was prepared for NADA to look at trends in the auto industry. The forecasts are very positive  for the dealers, they show how their companies will continue to dominate in vehicle sales and maintenance. However, in the near future there will be  There are plenty of changes, especially with digital dealers and autonomous vehicles in the near future. But as the last century has shown, from world wars and recessions to on-board diagnostics and mobile apps,  dealers certainly know how to adapt.

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1917: The luxury tax on cars is reduced from 5% to 3%.

1920: The staff grows to 13 men (6 in the office and 7 in the field) and the budget is $54,850. Warren G. Harding is the new president.

1922: A study is carried out at the request of the government into the residual values of used vehicles and the first guide is published             issued.

1923: Insurance, theft prevention and credit are now also offered. Calvin Cooldige takes over from the deceased         hardening.

1924: Chicago annual meeting attracts 2,000 participants

1925: NADA helps develop unified administration methods for auto financing.

1927: 3,500 Members. Relocation to a larger location.

1928: Contribution is now based on the previous year's turnover

1929: NADA asks manufacturers to help establish a committee that will review the relationship between dealers and manufacturers.        strengthen.

1931: Manufacturer-dealer contracts are developed for the first time. The USA is already building the 50 millionth vehicle.

1932: The impact of the recession on dealers is discussed at the meeting. One cuts in the  services and the number of members drops         to 2,000.

1933: The US government determines that existing used car guides are too biased and asks NADA to create its own   

      guide as part of the National Industrial Recovery Act. 40,000 copies will be printed in December and           sent. The first issue had 388 pages for 21 regions. It cost $31 per member. The interest in the values of used               vehicles was at two  reasons grown. One; the residual value was now taken into account when calculating the financing plan of

      a  new car where  previously did not know exactly how to deal with trade-ins. Two; more were now used          cars sold rather than new.  After the 1st World War, the sale of used vehicles was half that of new ones. From the 1920s          surpassed sales of  used those of new vehicles. The number of members  amounts to 35.265

1934: A dealer analysis department is started. The cost of the NADA guide drops to $12 per member. More than 2,500 are used               vehicle  statements analysed.

1935: Investigations into car sales and revenue for the first time.

1936: Membership is 30,000. They move from St. Louis to Detroit and also establish a legal department and establish a                standard appraisal form.

1937: The quality program for dealers is supported, mainly due to the increase in the number of outlets.

1938: Members get a say. The number of members now stands at a problematic 41,992. 

1939: The guide costs even more $8 per member. A special train will be used for the meeting to take dealers from Chicago to San Francisco         to bring.

1941: The NADA moves to Washington, the Guide remains in Detroit.

1942: The 25th meeting was attended by 2,300 members. Due to the participation of the USA in the second world war, the conversation started            about  to survive. The guide splits off from the association.

1943: NADA is involved in recruiting mechanics for the war. There is no meeting because the government forbids it if there is         more than 50 people would gather.

1944: For the first time, a member of the Ford family speaks at the meeting. Roosevelt proposes a $15 billion highway project.            NADA actively supports this project with safety campaigns.

1946: The number of subscriptions increases from 28,000 to 50,000 due to the increased interest in used vehicles. People report           about the first TV advertising experiments of dealers and manufacturers.

1947:  The first post-war convention in 1947 was also the 30th and a record 6,500 traveled to Atlantic City, NJ

1948: The US produces its 100 millionth vehicle.

1949: The number of members decreased during the war reaches 35,000.

1952: 9 out of 10 dealers are members. 35,394 to be exact. Automobile Manufacturers Association (AMA) shows that of a $2.00 dollar           car $650 goes to the government.

1955: NADA has 72 employees.

1956: They move to Washington and start an insurance plan and help pass the Good Faith Act into law.

1957: A new pension plan is introduced. More than 1,000 dealers participate directly.

1959: There is a workshop 'how do I sell an import'. 

1960: NADA sponsors son/daughter exchange project for European dealers.

1961: True market value guide is released

1963: Pension fund concerns 3.3 million. Double that of 1962.

1964: First commercial vehicle meeting.

1967: The NADA  is 50 years old and the circulation of the guide is 178,000.

1969: NADA testifies for under-compensation for dealers in warranty cases.

1970: Creation of Truck Division.

1971: There are now 130 employees.

1973: There is an import dealer meeting. AUTOCAP is started:  Automotive Consumer Action Program, a dispute resolution program           intended to improve the relationship between dealers and customers by providing free advice to members. Initially for the           Ohio  dealer association.

1974: People are against fuel rationing.

1976: Number of members present at the meeting: 12,000.

1979: Research on synthetic fuels is encouraged

1981: The Federal Trade Committee is sued over the Used Car Rule

1982: Protests against legislation requiring more domestic content in cars

1983: A bill is supported to  to cancel fleet discounts

1984: First dealer attitude surveys

1985: Teenagers discourage drinking and driving

1986: Project 2000 panel is formed

1987: The NADA  supports a law against odometer fraud

1989: The possibilities for a financing branch are investigated and abandoned.

1992: 75th anniversary and the introduction of the consumer version of the guide.

1993: NADA advises the government to list vehicle statuses on the license plate

1996: Abolition of luxury car tax

2001: Works with GM on plan to voluntarily shut down small dealers

2005: 3.5 million is collected for dealers affected by Hurricane Katrina

2007: Some imported aftermarket parts are banned and less strict CAFE rules are being worked on.

       The NADA uses even better analysis tools and adds more different values.

2009: NADA welcomes government support for GM and Chrysler and also promotes scrapping bonus

2011: A VIN scanner is added to the mobile products.

2015: JD Power takes over the Used Car Guide from NADA

2017: 100th anniversary

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