SINCE 1940
April 2012
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A Publication of the Florida Independent Automobile Dealers Association
Information and Insight for Florida Used Car Dealers
It’s a two-for-one when your FIADA membership automatically provides you a membership with NIADA. Find out more about what this winning pair has to offer. Page 6.
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Dealer Independent
MAILING ADDRESS TELEPHONE FAX WEBSITE EXECUTIVE COMMITTEE
1840 Fiddler Court Tallahassee, FL 32308 (850) 385-2712 (800) 237-0448 (850) 385-3251 www.FIADA.com Brandi Noegel President Christopher Leedom Senior Vice President Jim Kagiliery Chairman of the Board Dino Mercurio Secretary John Cousins Treasurer David Cox, CMD Regional Vice President Frank Fuzy Regional Vice President George Hickey Regional Vice President Steve Marbais, CMD Regional Vice President Paul Matton Regional Vice President
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Lisette Mariner Executive Director Terry Myers Educational Instructor Sarah Langley Administrative Director Alex Romans Education Director Leah Nash Membership Coordinator Christy Taylor Editorial/Advertising
Contents April 2012
For members of the Florida Independent Automobile Dealers Association
C O L U M N S & F E AT U R E S 4
President’s Message Brandi Noegel
6
Executive Director’s Message Lisette Mariner
8
What’s In It For You? Leah Nash
9
Your FIADA Membership Saves Make your NIADA membership work for you.
10
Member News New, Renewing and Rejoining Members
12
The Guessing Game Mislabeling workers as independent contractors when they really should be employees happens more than you think at auto dealerships. Learn what criteria qualifies for each designation.
16
FTC Steps in to Stop Deceptive Car Ads Five dealers across the country were cited by the FTC as using deceptive advertising on the topic of payments on trades. Learn from their mistakes on how to properly disclose such a deal.
20
Legislative Update: The Honorable John Grant and Jennifer Lux
24
Avoiding Discrimination in the Workplace Discrimination claims are on the rise. Be prepared with a formal plan of action and proper procedures for your staff.
26
Industry News
30
FIADA 2012 Annual Convention & Expo Preview! Make your plans to attend the main event, coming in October.
POSTMASTER:
Send address changes to
FIADA • 1840 Fiddler Court Tallahassee, FL 32308 (850) 385-2712 • Toll Free: (800) 237-0448 Fax (850) 385-3251 • www.FIADA.com The Independent Dealer is a publication of: Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308 The magazine is published every month in Tallahassee and distributed to Florida new, used, wholesale and lease/retail car dealers. Advertising rates are available upon request. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Independent Dealer or the Association. Likewise, the appearance of advertisers, or their identification as members of FIADA, does not constitute an endorsement of the products or services featured.
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April 2012 — Independent Dealer — 3
FROM THE PRESIDENT
Get Plugged-In to FIADA BY BRANDI NOEGEL, FIADA PRESIDENT
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s I sit back and think about writing this article I wonder how the 8,000-plus licensed car dealers in Florida are being educated. We all must do some type of Continuing Education (CE) training because it is required for your license, but things change daily and I wonder how you are staying upto-date. I attend seminars and 20 group meetings and even with that, I can say I do not know everything that changes daily. As I see you at the auctions I know it is not there because the auctioneers are not telling you about the new regulations. I’m really surprised that I do not see more of you at FIADA meetings and Town Hall education seminars that your Association presents throughout the state. The FIADA Town Hall meetings are “FREE” opportunities to get the education and knowledge that you need in your business. If you are not making the time to attend them, then you are really missing out on an invaluable resource not to mention potentially setting your business up for legal liabilities down the line. Contrary to popular thought, “I didn’t know” is not a valid excuse when you are taken to court or slapped with a fine. Ignorance may be bliss, but not when it comes to the rules and regulations that affect your dealership. Do you know about the ELT? If you do not recognize what those letters mean, then you will definitely want to come to the FIADA Board Meeting coming up in a few weeks on April 21. ELT stands for Electronic Lien Transaction and starting Jan 1, 2013 we will all be required to participate. Do you know how to do it? Are you ready?
uncle who passed the torch to you. I had the pleasure of knowing some of those first-generation dealers who were also pioneers in our Association. They believed in making time to learn about the industry and wanted to work with each other to make it better. They never missed a FIADA meeting because they always wanted to be on top of things. You could ask them anything and they always knew the answer. For whatever reason I have noticed that the next generation does not seem to have that same commitment; attendance at meetings are down and it seems like many choose not to take advantage of the opportunity to network in person. Maybe our fast-paced, technology-driven society has steamrolled over that desire to connect with other people and learn from them. Text messages and Skype are fine, but there is still a lot to be said for good-old fashioned, eye-to-eye conversation. Let’s not disappoint those “old-timers” who built this Association into what it is today. We owe it to those forefathers to unplug from everything else going on around us and plug-in to FIADA. Four times a year is really not a lot to ask, and the impact would be immense. You’re a dealer, a member and love the car business, so why not get involved? Be there April 20 in St. Pete at the Bayfront Hilton for the Town Hall meeting and stick around the next day for the Board Meeting. I can’t wait to see you there. Carol (Brandi) Noegel FIADA President
For those of us who are carrying on the tradition of a family business, I know you probably had a father or an 4 — Independent Dealer — April 2012
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NEW AND IMPROVED! Log in to the member’s only section to update your profile and connect with other members.
The new FIADA.com has more interactive features, including topical videos and forums.
Check out the handy Dealer Service Provider directory organized by category. Get a quick glance at breaking industry news and upcoming events from the FIADA calendar.
Log On to our newly enhanced website and access exclusive member’s only content. www.FIADA.com www.fiada.com
April 2012 — Independent Dealer — 5
EXECUTIVE DIREC TOR’S MESSAGE
FIADA and NIADA Working for YOU! BY LISET TE MARINER, EXECUTIVE DIREC TOR
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f you haven’t been to FIADA.com this month, take a moment to visit today. You’ll see a brand new look and some exciting new features. As a member of FIADA you’ll have access to the latest news, resources, complimentary CE, and much more. In the coming months we will activate new features on the site such as blogs, a career center and online communities. I recently had the opportunity to join my fellow state executives in Arlington, Texas to partake in the NIADA Leadership Conference. Florida is well represented with three members currently serving on committees. Our very own Frank Fuzy of Pompano Beach, Florida currently serves on NIADA’s Executive Committee as Region II Vice President. This conference was a wonderful opportunity to see what other states are doing and hear firsthand all the efforts from NIADA. From California’s destructive Senate bill regarding buy-here-pay-here to the federal Consumer Financial Protection Bureau’s mandates, NIADA is fighting on our behalf. They are vigilant in meeting with the Consumer Financial Protection Bureau to educate the CFPB on industry issues and maintaining dialogue. NIADA also encouraged dealers to submit their name to be considered for the newly created Consumer Advisory Board. The application process is rigorous and each candidate is subject to a full background investigation. We look forward to having some representation on this board.
many benefits. It was designed with our customers and dealers in mind. Details on how to sign up for this great program will be available next month. While NIADA works for you on the federal level, FIADA works for you at the state level. The Florida legislative session ended on March 9 with 2,052 bills filed and 292 bills passing. Much of the legislative session circled around redistricting, gambling, PIP, and the budget. The gambling issue died fairly early in the process and the transportation bill passed on the last day. The Senate did come back for a week to revise the redistricting plan to conform to the Supreme Court judgment. The April Town Hall Meeting will focus on what happened this legislative session and what you need to know. The transportation bill was an eclectic mix of items, from changing department names to making the
While NIADA works for you on the federal level, FIADA works for you at the state level.
NIADA also announced the new Certified Pre-Owned Vehicle Program with Warrantech. This program offers 6 — Independent Dealer — April 2012
ELT program mandatory. The FIADA is working with the department to determine implementation. Senator John Grant provides a more detailed legislative account within this magazine. I would like to continue to encourage you to utilize your member benefits. If you haven’t logged on lately, check out the new FIADA website at www.FIADA.com. Update your profile, register for events, and find the resources that help you save money. FIADA here for you! www.fiada.com
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April 2012 — Independent Dealer — 7
BY LEAH NASH, MEMBERSHIP COORDINATOR
Time Is Running Short, CE Due
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f there is one thing that I hear from dealers the most, it is how busy you are…you are going to auctions, making sales, managing employees… even making sure that the lights stay on! You have multiple responsibilities; there is no doubt about that. One of the responsibilities that you have to the State of Florida is to fulfill your continuing education (CE) requirements, which includes 8 hours of CE every two years. You can complete this CE anytime during the two years, however, if you are like most, you may have waited until the last moment to fulfill yours. The deadline to complete your CE requirement is April 30. FIADA has you covered. First thing, don’t panic! FIADA is looking out for you. As a FIADA member, you receive FREE ONLINE continuing education. Not only is your CE free, it is available for all members in your dealership. All non-members must pay $39.95 for their online CE. Your FREE CE is a member benefit, plain and simple. Your free online continuing education is also easy to access. Just visit FIADA.com (check out the brand new website!) and click on the “Beat the Clock” image. If you don’t see it, you can also hover over “Dealer Training School,” then over “Continuing Education (CE)” and click on “Online (CE)”. Your online CE program is easy to use and convenient, you can do it on your time (as long as it is before April 30th!). You also receive your CE certificate immediately to print out right then and there!
What’s Your Interest? If it’s not your year to submit your CE hours, be on the lookout for other CE opportunities that peak your interest. The FIADA Convention will be held October 11 -14 at the Boca Raton Resort & Club. Training topics will include marketing, sales, technology, finance, human resources/personnel topics and legal issues affecting dealers today. At least 8 hours of CE will be offered. Register now for a discounted rate! A new course on titling and registration has also recently been approved for continuing education. Although it won’t be available before the April 30th CE deadline, be on the lookout for more information from FIADA on this new course, offered by the Florida Auto Dealer School. As you can see, FIADA is looking out for you by making fulfilling your CE requirements as easy, cost effective and interesting as possible. By becoming a member, you receive all of these benefits. Your input is also appreciated! Please feel free to contact FIADA with your comments and/or inquiries. Visit FIADA.com and click on “Join FIADA” to become a member or renew your membership. If you do so after reading this article, type Leah Nash in the Sponsor Name section of the online application. You may also contact Leah Nash at leah@fiada.com to join or if you need membership recruitment assistance. If you would like to receive FIADA Facebook updates, please like the FIADA page at facebook.com/ FLIndAutoDealersAssoc.
What’s In For You? is a new series of articles that focuses on what FIADA can provide to you as part of its valuable member benefits. Leah Nash is FIADA’s Membership Coordinator and will be traveling statewide to meet with potential members and current members to determine what member benefits are most appreciated. Look for Leah at your dealership or an auction near you. Be sure to say hello! 8 — Independent Dealer — April 2012
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Be on the look out for Membership Coordinator Leah Nash at an auction near you. If you see her, please stop by to say hello…she loves to meet FIADA members! Leah may also snap a photo of you that you may view on the FIADA Facebook page or in a future issue of Independent Dealer. Leah is on the road throughout Florida and may even stop by your dealership. Please feel free to email her at leah@fiada.com.
NIADA MEMBERSHIP IS A TWO-FOR-ONE When you become a FIADA member you also gain membership into the National Independent Automobile Dealers Association. As an NIADA member you have additional member benefits and discounts, like: Sirius/XM: SiriusXM in partnership with NIADA is offering NIADA member retail customers a two or three month free trial of SiriusXM satellite radio services to assist NIADA members close new business, drive traffic to their stores, and enhance long term customer loyalty. The program is no cost to NIADA members and includes complimentary point of sale SiriusXM marketing materials. The use units involved in this program must have satellite radio functionality. To sign up for this program go to www.siriusxm.com/niada NIADA Health Insurance Program: NIADA offers individual, small group, short term medical, critical illness, dental, vision, and disability insurance coverage to NIADA members. Partnering with JLBG Health, NIADA Health Insurance Services provides members with small business centric coverage’s, competitive premiums, and a wide variety of health insurance options to choose from. For more information or to get a quote go to www.niadahealthplans.com or call 1-888-308-9340 www.fiada.com
Auction Genius: Auction Genius has developed a revolutionary online wholesale remarketing portal, which allows NIADA members to research and bid on Manheim, Adesa, Openlane, and GM SmartAuction wholesale units via one web screen portal, and includes vehicle valuations, vehicle history reports, etc. This allows NIADA members to bid and secure wholesale units more quickly, accurately, and seamlessly and helps to secure the units they need real time outside their local market. NIADA members receive a 10% discount off the normal pricing structure. For more information go to www.auctiongenius.com PH2 Solutions: NIADA members have access to the “PH2 ValidatorSM” emissions diagnostic technology for a $259 savings with multiple payment plan options. The diagnostic software of choice for Dealers and their on-site staff rapidly identifies any emission related issues on virtually all 1996 and newer makes and models. For more information email NIADA@ PH2solutions.com.
April 2012 — Independent Dealer — 9
MEMBERSHIP NEWS
New Members
MARCH 2012
ABT INC. Fort Lauderdale, FL Thomas Prewitt Sponsor: Leah Nash
DASH AUTO BROKERS, INC. Tampa, FL Donnie Duchesne Sponsor: Terry Myers
GARRETT MOTORS INC. New Smyrna Beach, FL Chris Garrett Sponsor: Leah Nash
ACCESS CAPITAL, INC. dba FLORIDA VEHICLE CONSIGNMENTS Ocala, FL Tom Burke Sponsor: Kevin Scott
E AUTOMOTIVE INTERNATIONAL Tarpon Springs, FL Travis Wells Sponsor: FIADA
GAS BUGGIES LeHigh Acres, FL Tim Parmenter Sponsor: FIADA
EMERALD COAST CARS L.L.C. Niceville, FL David Brown Sponsor: Terry Myers
JEANIE’S AUTOMOTIVE, INC. Palm Harbor, FL Janine Byrd Sponsor: FIADA
ETEL SRUR Hialeah, FL Sponsor: FIADA
KICKLIGHTER AUTO SALES LLC Jacksonville, FL Steve Kicklighter Sponsor: Office
ASC WARRANTY, INC. Mountain Home, AK Terry Small Sponsor: FIADA ASSOCIATED AUTOMOTIVE GROUP, INC. Sanford, FL David Case Sponsor: Wayne Reaves AUTO EXPRESS SOUTH Fort Myers, FL Thomas O’Neil Sponsor: FIADA B&E AUTOS Altha, FL Betty Hunt Sponsor: Terry Myers BIG D ENTERPRISES Lake Alfred, FL Deborah Hoffman Sponsor: Terry Myers COLOBAL E CONNECTIONS Orlando, FL Nancy Snyder Sponsor: Terry Myers
ETS AUTOS Sanford, FL Edwin Calderon Sponsor: Leah Nash FIRST FLORIDA MOTOR SPORTS, INC. Miami Beach, FL Donald Payette Sponsor: Leah Nash
B&C AUTONET Port St. Joe, FL Billy Quinn, Jr. B&A AUTO SALES OF CENTRAL FLORIDA Winter Garden, FL Mark Hess BUD LAWRENCE USED CARS Deland, FL Bud Lawrence
NAIM FARUQUI Orlando, FL Sponsor: Terry Myers
FLORIDA AUTO GALLERY Bonita Springs, FL Jay Scott Sponsor: Leah Nash
ORANGE SPORTS CENTER, INC. Orlando, FL Louis Sanchez Sponsor: Leah Nash
FRANCHISE AUTO SALES, INC. Altamonte Springs, FL Latrice Bilal Sponsor: Leah Nash
PLANAS MOTOR GROUP, LLC Florida City, FL Juan Planas Sponsor: FIADA
Rejoining Members APEX AUTO, INC. Altamonte Springs, FL Tony Rossi
LUXURY AUTOS OF TREASURE COAST Ocoee, FL Luis Reyes Sponsor: Leah Nash
SOUTHEAST BROKERAGE Winter Park, FL Richard Vimmerstadt Sponsor: FIADA SPARTAN FINANCIAL PARTNERS Spartanburg, FL Kenny Lawson Sponsor: FIADA TNT USED AUTO SALES North Fort Myers, FL Phil Mangione Sponsor: Terry Myers WHEELER CYCLES, LLC Fruitland Park, FL Robert Rhodes Sponsor: Terry Myers WING MOTORS AUTOMOBILE CORP Miami, FL Juan Srur Sponsor: Carlos Pendola YARIS LLC Casselberry, FL Mohammad Ashraf
MARCH 2012
CENTRAL FLORIDA AUTO OUTLET Longwood, FL Mark Kendall GALAXY AUTO SERVICES, INC. Orlando, FL Lidia Paulino GATOR CITY MOTORS Gainesville, FL Ard Heshmat JUST IN TIME AUTO SALES INC. Auburndale, FL Cheryl Abbott Acres
10 — Independent Dealer — April 2012
POP’S DIESEL REPAIR SERVICE INC. Jacksonville, FL Robert Lamoureaux Sponsor: FIADA
MANHEIM FORT MYERS Fort Myers, FL Tom Hammer MIKES CARS & TRUCKS Port Orange, FL Mike Schumann PARK AUTO MALL, INC. Pinellas Park, FL Fred Najjar ROUTEONE, LLC Farmington Hills, MI Ashley Fritz
SOUTHERN AUTO SALES OF DAYTONA, INC. Holly Hill, FL Joseph Beckham SUPREME MOTORS Ft. Lauderdale, FL Jim Brown TEN STARS AUTO SALES Kissimmee, FL Dhanessar Dammar
Continued on Page 18. www.fiada.com
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Contact Protective’s Florida representative, Chris Behrens at 866 452 7335 A “National Corporate Partner” has met stringent NIADA criteria demonstrating that it can provide valuable products and services to NIADA members. No legal partnership has been created by the granting of this status, but NIADA does receive compensation from Protective. Lifetime Engine Warranty, Limited Warranty, Vehicle Service Contracts (VSCs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VSCs are backed by Old Republic Insurance Company. GAP, Lifetime Engine Warranty and Limited Warranty are not available in NY. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company.
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April 2012 — Independent Dealer — 11
The checklist for determining whether a worker is an employee or an independent contractor can be unclear, depending on the circumstance. Here’s the test on how to know for sure. BY JEFFREY M. NOVELL, ESQ.
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n dealing with disputes with workers, it is of the utmost importance to determine whether or not the worker is an employee or an independent contractor. Independent contractors are not covered by unemployment and worker’s compensation, or by federal and state wage and hour laws, or by anti-discrimination or labor laws. Further, businesses do not have to pay federal payroll taxes on amounts paid to independent contractors. If an employee is incorrectly classified as an independent contractor, the business can be held liable for employment taxes for that worker as well as penalties. Whether a worker is an employee or an independent contractor is dependent upon the facts of the employment—a worker may be an employee under one law and found to be an independent contractor under another. These tests are often different—the tests used for federal tax purposes may vary a great deal from the test used in a sexual harassment case, which may vary greatly from the test used in a worker’s compensation case. More important is the determination of what test to use in Florida. After the facts of the situation are clarified, complicating matters further is the fact that different governmental agencies use different tests to determine the correct classification. The tests are similar, but there are some differences between them. The test promulgated by the Internal Revenue Service is the test most commonly utilized for the determination of employee vs. independent contractor. The Florida First District Court of Appeals, in a recent decision, relied upon the Florida Common Law test that developed in the 1950s and 1960s. The appellants who were workers denied unemployment compensation benefits, argued that the Agency for Workforce Innovation (the Florida state agency that handles unemployment compensation issues), should have applied the IRS test. The 1st DCA held that the Agency had utilized the correct test, because the Florida unemployment compensation statute makes specific reference to the common-law test. Brayshaw v. Agency for Workforce Innovation, 36 Fla. L. Weekly D396b (1st DCA, 2011).
12 — Independent Dealer — April 2012
FLORIDA’S TEST The Florida Statutes indicate the following: An employee does not include an independent contractor who is not engaged in the construction industry. A. In order to determine the definition of independent contractor, at least four of the following must be met: i. The independent contractor maintains a separate business; ii. The independent contractor holds/has applied for a federal EIN, unless not required to obtain same under state/federal regulations; iii. The independent contractor receives compensation for work performed paid to a business rather than an individual; iv. The independent contractor holds one or more bank accounts in the name of the business entity for purposes of paying expenses related to work performed; v. The independent contractor performs work for any other entity at his/her own election without the necessity of completing an employment application or process; or vi. The independent contractor receives compensation for work on a competitive bid basis or completion of a task/set of tasks as defined by a contractual agreement, unless such agreement expressly states that an employment relationship exists. B. If four of the criteria listed above do not exist, an individual may still be presumed to be an independent contractor based on full consideration of the nature of the individual situation with regard to satisfying any of the following conditions: i. The independent contractor performs specific work for a specific amount of money and controls the means of performing the work. www.fiada.com
ii. The independent contractor incurs the principal expenses related to the service or work. iii. The independent contractor is responsible for the satisfactory completion of the work. iv. The independent contractor receives compensation for work performed for a commission or on a per-job basis and not on any other basis. v. The independent contractor may profit or suffer a loss in connection with performing work. vi. The independent contractor has continuing or recurring business liabilities or obligations. vii. The success/failure of the independent contractor’s business depends on the relationship of business receipts to expenditures. C. Not withstanding anything to the contrary above, an individual claimant to be an independent contractor carries the burden of proving same. THE IRS TEST The more commonly used IRS test considers three categories of facts that provide evidence of the degree of control and independence: Behavioral: Does the company control and how much control does the company have over what the worker does and how the worker does his or her job? Instructions the business gives the worker: When and where to do the work; What tools or equipment to use; What workers to hire or to assist with the work; Where to purchase supplies and services; What work must be performed by a specified individual; What order or sequence to follow when performing the work. Degree of Instruction: Degree of Instruction means that the more detailed the instructions, the more control the business exercises over the worker. More detailed instructions indicate that the worker is an employee. Less detailed instructions reflects less control, indicating that the worker is more likely an independent contractor. Obviously, the amount of instruction needed varies among different jobs; even if no instruction is given, sufficient behavioral control may exist if the employer has the right to control how the results are achieved. The key issue for determination is whether the business has retained the right to control the details of the worker’s performance or if they have waived that right. www.fiada.com
Evaluation System: If the system measures the details of how the work is performed, then these factors would point to an employee. If only the end result is considered, then this could point to either an independent contractor or an employee. Training: If the business provides the worker with training on how to do the job, this indicates that the business wants the job done in a particular way. This is strong evidence that the worker is an employee. Periodic or on-going training about procedures and methods is even stronger evidence of an employer-employee relationship. However, independent contractors ordinarily use their own methods. Financial Control: facts that show whether or not the business has the right to control the economic aspects of the worker’s job. The financial control factors fall into the categories of significant investment, unreimbursed expenses, opportunity for profit or loss, services available to the market, and method of payment. Significant investment by the worker: While a significant investment is not necessary for an independent contractor status, one often has a significant investment in the equipment he or she uses in working for someone else. However, in many occupations, such as construction, workers spend thousands of dollars on the tools and equipment they use and are still considered to be employees. There are no precise dollar limits that must be met in order to have a significant investment. Unreimbursed expenses: Independent contractors are more likely to have unreimbursed expenses than are employees. Fixed ongoing costs that are incurred regardless of whether work is currently being performed are especially important. However, employees may also incur unreimbursed expenses in connection with the services that they perform for their business. Opportunity for profit or loss: If a worker has a significant investment in the tools and equipment used and if the worker has unreimbursed expenses, the worker has a greater opportunity to lose money (i.e., their expenses will exceed their income from the work). Having the possibility of incurring a loss indicates that the worker is an independent contractor. Services available to the market: An independent contractor is generally free to seek out business opportunities. Independent contractors often advertise, maintain a visible business location, and are available to work in the relevant market. Continued on Page 14. April 2012 — Independent Dealer — 13
EMPLOYEE OR INDEPENDENT CONTRACTOR continued from Page 13.
Method of payment: An employee is generally guaranteed a regular wage amount for an hourly, weekly, or other period of time. This usually indicates that a worker is an employee, even when the wage or salary is supplemented by a commission. An independent contractor is usually paid by a flat fee for the job. However, it is common in some professions, such as law, to pay independent contractors hourly.
will present the attorney’s work as its own and would have the right to control or direct that work. This would indicate an employeremployee relationship.
Written Contracts: A contract stating the employee/independent contractor status is still not sufficient to determine the worker’s status as the IRS is not bound to this contract.
If, after reviewing the three categories of evidence, it is still unclear whether a worker is an employee or an independent contractor, Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding can be filed with the IRS. The form may be filed by either the business or the worker. The IRS will review the facts and circumstances and officially determine the worker’s status. Be aware that it can take at least six months to get a determination, but a business that continually hires the same types of workers to perform particular services may want to consider filing the Form SS-8.
Employee Benefits: Insurance, pension plans, paid vacation, sick days, and disability insurance are all generally not granted to an independent contractor.
REAL WORLD EXAMPLES In application to the two main components of an auto dealership, the salesperson and the service repair technician:
Permanency of the Relationship: If the worker was hired with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that the intent was to create an employer-employee relationship.
In the hypothetical situation where an auto sales person is assigned to be at work at certain times, appraisals of trade-ins are subject to sales managers approval, lists of prospective customers belong to the dealership, he is experienced and requires only minimal assistance in closing and financing sales. He is paid a commission and is eligible for bonuses from the dealership. The dealership pays his health/ life insurance. It is likely in this situation, with these facts, the salesperson is an employee.
Type of Relationship: facts that show how the worker and business perceive their relationship to each other.
Services Provided as Key Activity of the Business: If a worker provides services that are a key aspect of the business, it is more likely that the business will have the right to direct and control his or her activities. For example, if a law firm hires an attorney, it is likely that it
In the hypothetical situation where a repair technician works regular hours,
is paid on a percentage basis, and the dealership supplies the facility, all parts, supplies, and issues instruction on the amount to be charged, part to be used, and time for completion of each job, it is likely that the technician is an employee. In an alternative situation, where a dealership furnishes space for a technician to perform repair services. The tech provides her own tools, equipment, and supplies, and seeks out business from other individuals other than the dealership. The tech hires and fires her own employees, determines her own and their hours, assumes all losses from uncollectable accounts, and receives a percentage of the gross collections from the repair shop. It is likely that the tech is an independent contractor and her helpers are employees. Classification problems can be difficult to evaluate. Misclassification can lead a business before a state taxing authority or the IRS. The issue can be triggered when a terminated worker files for unemployment benefits, leading to investigations that can have substantial monetary costs, even if successful. To reduce the risk of same, the employer must familiarize themselves of the rules and differences between employees and independent contractors to structure and manage relationships with workers, and to document all relationships with workers from the onset of the relationship so that any disagreements can be viewed in a contract rather than in conflicting testimony. If a company has any doubt about its decision to classify a particular worker as an independent contractor rather than an employee, or vice versa, it should contact outside counsel to assist with the complicated analysis.
Jeffrey M. Novell, Esq., is a partner in the Tampa, Florida office of Hinshaw & Culbertson, practicing exclusively employment defense litigation. As a member of FIADA you have access to the technical assistance line. If you have legal or regulatory questions, please call (800) 237-0448. 14 — Independent Dealer — April 2012
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FTC Steps in to STOP Deceptive Car Ads Five car dealerships have agreed to follow orders to pull ads promising to pay off consumer trades.
F
ive car dealers around the country have agreed to Federal Trade Commission settlement orders that require them to stop running ads in which they promise to pay off a consumer’s trade-in no matter what the consumer owes on the vehicle. The FTC charged that the ads, which ran on the dealers’ websites and on sites such as YouTube.com, deceived consumers into thinking they would no longer be responsible for paying off the loan balance on their trade-in, even if it exceeded the trade-in’s value (i.e., the trade-in had “negative equity”). Instead, the dealers rolled the negative equity into the consumer’s new vehicle loan or, in the case of one dealer, required consumers to pay it out of pocket. The proposed settlements, reached as part of the FTC’s ongoing efforts to protect consumers in financial distress, bar all of the dealers from making similar deceptive representations in the future. The cases are the first of their kind brought by the FTC. The Commission also issued a new consumer education publication titled “Negative Equity Ads and Auto-Tradeins” to help consumers understand these types of ads.
16 — Independent Dealer —April 2012
“Buying a new car or truck is a major financial commitment, and the last thing consumers need is to be tricked into thinking that a dealer will ‘pay off ’ what they owe on their current vehicle, when they really won’t,” said David Vladeck, Director of the FTC’s Bureau of Consumer Protection. “The Federal Trade Commission is constantly on the lookout for potentially deceptive ads, and brings actions to stop them when appropriate.” The dealers named in the FTC’s complaints are: 1) Billion Auto, Inc., in Sioux Falls, South Dakota; 2) Frank Myers AutoMaxx, LLC, in WinstonSalem, North Carolina; 3) Key Hyundai of Manchester, LLC and Hyundai of Milford LLC, in Vernon and Milford, Connecticut, respectively, and which advertise jointly; 4) and Ramey Motors, Inc., in Princeton, West Virginia. The FTC’s complaints allege that despite the dealers’ claims, consumers still end up being responsible for paying the difference between the trade-in loan balance and the vehicle’s value. The complaints charge that the dealers’ representations that they will “pay off ” what the consumers owe are false and misleading, and violate the FTC Act.
Examples of the allegedly deceptive advertisements include: • “Credit upside down? Need a new car? Go to Billionpayoff. com. We want to pay off your car.” The advertisement depicts a car moving, inverts the video to depict it upside down, and then turns it right-side up again. (Billion Auto) • “Uncle Frank wants to pay [your trade] off in full, no matter how much you owe.” (Frank Myers AutoMaxx) • “I want your trade no matter how much you owe or what you’re driving. In fact I’ll pay off your trade when you upgrade to a nicer, newer vehicle.” (Key Hyundai and Hyundai of Milford) • “Ramey will pay off your trade no matter what you owe . . . even if you’re upside down, Ramey will pay off your trade.” (Ramey Motors) In addition, the complaints in three of the cases allege violations of the Truth in Lending Act (TILA) and its implementing Regulation Z for failing to disclose certain credit-related terms, and the complaints in two of the cases allege violations of the Consumer Leasing Act (CLA) and its implementing Regulation M for failing to disclose certain lease related terms. In response to the FTC orders Tracy Myers, owner of Frank Myers AutoMaxx, told reporters he never meant to deceive customers, but explaining the nuances of the trade-in process and negative equity is difficult in a 30-second commercial. ‘We’re a full-disclosure dealership, so we would tell the customer how much they owed,” Myers told The Huffington Post. “I was fairly naive and thought the customer understood” the process, he said. He said he’ll comply with the FTC rules. “It’s like driving the speed limit,” he said. “You might think it should be 65, but if it’s 55, you abide by that.” Jill Merriam, the Key Hyundai owner, Continued on Page 18. www.fiada.com
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FTC STOPS DECEPTIVE ADS continued from Page 16.
said the advertising cited by the FTC appeared without disclaimers only on dealer videos on YouTube more than 18 months ago and never on radio or television. “In its complaint,” Merriam told the Hartford Courant, “the FTC cited a few YouTube videos that lacked the appropriate disclaimer. It was noted at the time that the vast majority of the videos on our Youtube channel did have appropriate disclaimers and therefore were not cited. As soon as we were notified of the error in those few videos, we immediately pulled them down.”
Merriam says Key Hyundai has made appropriate disclosures to customers and has treated negative equity in tradeins fairly. “This citation is only based on the FTC viewing some YouTube videos, nothing more, nothing less,” she said. The FTC proposed orders prohibits the dealers from misrepresenting that it will pay the remaining loan balance on a consumer’s trade-in, so the consumer will have no further obligation for any amount of that loan. It also prohibits the dealer from misrepresenting any other facts related to leasing or financing a vehicle.
The proposed orders against Billion Auto, Key Hyundai, Hyundai of Milford, and Ramey Motors require these dealers to make clear and conspicuous disclosures when advertising certain terms related to issuing consumer credit. It also requires that if any finance charge is advertised, the rate must be stated as an “annual percentage rate” or as the “APR.” In addition, the proposed orders against Billion Auto, Key Hyundai, and Hyundai of Milford require these dealers to clearly and conspicuously make all lease related disclosures required by the CLA and Regulation M, including the monthly lease payment.
MEMBER NEWS continued from Page 10.
Renewing Members
MARCH 2012
30+ Year Members Datura Auto Sales
West Palm Beach, FL
20+ Year Members Ed Cox Motor Company, Inc. Hawley Motor Sales, Inc. J.D. Sanders, Inc. Mears Transportation Group Orange County Motors, Inc. Paragon Auto Sales, Inc. Roney Auto Sales Skipper Limited, Inc.
Ft. Walton Beach, FL Sarasota, FL Alachua, FL Orlando, FL Orlando, FL Interlachen, FL Plant City, FL Graceville, FL
10+ Year Members Bargain Auto Sales of Lakeland, Inc. Bubba Hill Auto Plaza, Inc. Casey’s Auto Wholesale Computerized Vehicle Registration Global Wholesale Motor Company GWC Warranty Corporation of Florida J.D. Byrider Larry Condon Auto Sales Mitchell Motor Cars, Inc. Southeast Fleet Auto Sales, Inc. Tax Refund Services, Inc. Taylor Morgan, Inc. dba Network Auto Sales The Truck Center, Inc.
Lakeland, FL Panama City, FL Bradenton, FL Newberry, FL Ft. Myers, FL Avoca, PA Jacksonville, FL Stuart, FL Ft. Lauderdale, FL Clearwater, FL Tampa, FL Jacksonville, FL Ft. Walton Beach, FL
Under 10 Year Members 1st Place Auto Sales, Inc. A&B A/S of Jacksonville, Inc. ACR of South Florida ADESA A/A of Sarasota Auto Mobility Sales Autoland of West, Inc. Beach Boulevard Automotive Blue Marlin Motors of Stuart, LLC Bonita Big Lot, Inc. Butler Auto Recycling
18 — Independent Dealer — April 2012
Mulberry, FL Chipley, FL Miami, FL Bradenton, FL Lake Worth, FL Royal Palm Beach, FL Jacksonville, FL Stuart, FL Bonita Springs, FL Pensacola, FL
Car Choice Inc. Tallahassee, FL Carpractic Plant City, FL Castnet Auto Titusville, FL Central Florida Auto Wholesale Leesburg, FL Delta Car Trade Inc. West Palm Beach, FL Earls Cycle Center Ocala, FL East Coast Insurors, Inc. Ormond Beach, FL Euro Experts, Inc. Royal Palm Beach, FL E-Z Pay Cars LLC Fort Pierce, FL Fairland MV Leasing Corp Pompano Beach, FL Foreign Affairs Auto West Palm Beach, FL Insurance Auto Auction Orlando, FL Jimmie’s Auto Sales Madison, FL Kurkin Forehand Brandes LLP Aventura, FL Land of Wakulla Inc dba True Motorcar Collection Crawfordville, FL Luxury Motors of Ft. Myers LLC Ft. Myers, FL Melbourne Auto Mart, Inc. Melbourne, FL Micro Finance Seminole, FL Millenia Motors, Inc. Longwood, FL Original Suwannee River Campground, Inc. & RV Sales Old Town, FL Paradise Auto Brokers, Inc. Fort Lauderdale, FL Pegasus Classic Cars LLC West Palm Beach, FL PFS Financial Services of Florida Tampa, FL Powerfun, Inc. Tavares, FL Routh’s Equipco dba Gravely of Bradenton Bradenton, FL RTG Auto Sales, LLC Tarpon Springs, FL Sabal Auto Group, LLC Longwood, FL SeaGreen Finance Fort Pierce, FL Snider’s Truck & Auto Sales Titusville, FL Sunrise Financial Associates Orlando, FL Tampa Auto Source, Inc. Tampa, FL Tampa Carstore, Inc. Tampa, FL Taylor Auto Sales, Inc. Tallahassee, FL The Auto Source, Inc. Maitland, FL The Surety Group Atlanta, GA Wolters Kluwer AppOne Baton Rouge, LA Yoder Auto Sales, Inc. Sarasota, FL
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Continued on Page 20. February 2012 — Independent Dealer — 19 www.fiada.com
L E G I S L AT I V E U P D AT E
Session Behind, Elections Ahead BY HONORABLE JOHN GRANT and JENNIFER LUX, FIADA LEGISLATIVE ADVOCATES
T
he azaleas are blooming and the dogwood is budding, but the 2012 session of the Florida Legislature has come and gone. An early session is something uncharacteristic for this time of the year when the legislature usually is just beginning. It happens once every ten years when the constitution requires decennial reapportionment. This year the legislature left little evidence of having been there, with a scant 292 bills being passed. That is compared to over seven hundred in the session two years ago. That’s good news for those wanting to stop bills from passing, but does not bode well for those who have a legislative agenda to get through the process. Fortunately we passed our curbstoning bill two sessions ago. The legislature came to town in January with only three things on their agenda… writing the budget, dealing with casino gambling and doing state and federal reapportionment. They wrote the budget, defeated casino gambling, did reapportionment, killed legislation to privatize state prisons…. and then they went home, doing little else. FIADA was in a defensive mode this year. There were really no unfriendly bills to be killed, but there were some that were ripe for an unfriendly amendment that could have been problematic for us. We monitored a credit bill, a towing bill and the service and sales warranty legislation among others, but none developed enough to be problematic. Also we followed the Department of Highway Safety and Motor Vehicle’s bill hoping to use it as an amendment bill for the lease here pays here language. We also watched a plethora
of motor vehicle insurance bills as well as arguably the most important of those, the final PIP bill. There was also legislation dealing with recreational vehicle dealers, failure to return leased vehicles and legislation dealing with salvage motor vehicle dealers licensing and regulation. At the end of the day all either were not objectionable or, with most, they simply died on the legislative vine as a part of the logjam in the Senate. On an offensive list, we had but one item on the list: to change the insurance requirements for lease here pay here to be the same as for buy here pay here. By the time this got into position in a way that was most favorable to us, the deadline for bill filing had passed and we had to depend on the amendatory process. That meant we needed a relevant bill (same chapter of the statutes) and a bill sponsor willing to accept it. We got that done and were well on our way until the trial bar raised their hand to say “no” unless we took their version, which would have wiped out the protections of the Graves Amendment, which provides protection under federal law. We also argued that we were just conforming the statutes to reflect the decision of the Florida Supreme Court in the case of Vargas v. Enterprise Leasing. Your legislative committee and executive officers made the decision to not proceed with the amendment and risk a hijacking by the trial bar lobby to impose higher coverage requirements on buy here pay here. Instead, we decided we will return to address this issue next year. At the end of the session, nothing took place that directly affected our industry either positively or negatively. As the gavel came down, nearly 300 bills died on Continued on Page 24.
20 — Independent Dealer — April 2012
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LEGISLATIVE UPDATE continued from Page 20.
the Senate calendar. But, our dealers are not just in the car business, they are small businessmen and business women who are concerned with the business climate in general. While the pro-business legislation was not quite as good as last year, small business still received some benefit. Legislators agreed to push back much of a huge, looming tax increase needed to replenish the state’s unemploymentcompensation fund, saving businesses across the state a cumulative $830 million over the next three years. They put a constitutional amendment on the ballot to reduce property taxes on business equipment. They cut corporateincome taxes for all businesses (at least the ones that pay the tax at all) and passed additional, narrower tax breaks for manufacturers, video-game designers, property insurers and many others. Then, on the final day of session — in a plan publicly revealed for the first time at 4:30 in the morning and voted out just before 10 p.m. that same day — the Legislature agreed to impose new restrictions on “personal injury protection,” (PIP) car-insurance coverage, in hopes of weeding out fraud and reducing premiums. The Senate adjourned and headed out of town with hundreds of gubernatorial appointments unapproved and now set to expire. For legislators, the focus seemed not on their legislative responsibilities but on getting re-elected in a year when every one of the 160 seats in the legislature is up for election. Needless-to-say, the elections this year will be interesting. Due to reapportionment some 38 House members either do not live in their new district or are in a district shared with another member thus kicking off a number of incumbents facing another incumbent. As I write, the Florida Supreme Court has approved the House districts, but found eight Senate districts unconstitutional, forcing the legislature back into a special reappor-
tionment session to try once again to get court approval. If not approved this time, then the court will write the district maps, creating a whole new dynamic on the election ballot. All 160 newly elected legislators will be sworn in two weeks after the November elections and all will be faced with significant legislative challenges in the 2013 legislative session. For the past two years, deficits in the budget were largely covered by requiring state employees to contribute a part of their annual retirement cost. This has saved the state more that $2 billion. During the last week of this year’s session, a circuit court judge ruled that was unconstitutional and the amounts must be paid back to employees with interest. If upheld by the Florida Supreme Court, the refund plus the required 2013 contribution will put a $3 billion deficit in the budget. And coupled with the fact that the unemployment rate is remaining steady for the foreseeable future and economic recovery seems to be stalled at least until after the presidential election, it all forebodes for a wild legislative ride in 2013. Meanwhile, your FIADA legislative team will turn now to earning the Association maximum political clout in the coming elections. We will be attending legislative receptions and fundraisers and handing out the checks that our members make possible through PAC contributions. In next month’s Independent Dealer we will tell you how to get in involved in the election process and how you can make a difference for the FIADA and for Florida. From Tallahassee, John and Jen The Hon. John Grant and Jennifer Lux, FIADA Lobbyists
PAC CONTRIBUTIONS
Use this form to make your contribution (made payable to FIADA-PAC), and mail to the FIADA office at 1840 Fiddler Court, Tallahassee, FL, 32808
CONTRIBUTOR’S NAME:
Enclosed is my check for: q $1,000
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22 — Independent Dealer — April 2012
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As always, FIADA Town Hall Meetings are open to all dealers. Join us in St. Pete for an informative talk about issues and topics relating to used car dealers. Go to www.FIADA.com to RSVP now for this seminar.
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April 2012 — Independent Dealer — 23
Avoiding Discrimination in the Workplace
A
ccording to a report released by the U.S. Equal Employment Opportunity Commission (EEOC) in January 2011, discrimination complaints filed with government agency increased 7.1 percent in 2010. The number of employment discrimination cases reached 99,922 filings in 2010, up from 93,277 filings in 2009. Why the sudden increase in complaints? There are several factors, including scarcity of jobs, more knowledgeable employees of their rights, and greater protections for disabled workers. Most commonly, discrimination complaints involve race, gender, national origin, religion, age and disability. And according to the EEOC report, all showed an increase in 2010. So what does this mean to your business? Even if you or one of your employees did not make a conscious decision to discriminate against anyone in a situation involving a hiring, firing or layoff, your business can still find itself in legal trouble. The EEOC report shows discrimination complaints are an increasing risk, so now is the time to implement programs to train and educate managers and employees to help your business avoid
24 — Independent Dealer — April 2012
discrimination claims and be prepared to respond if one is filed. What can your business do? The first step to help protect your business from discrimination lawsuits is to examine your company culture. Owners and managers set the example that most employees will follow. Top management must set a good example by establishing a companywide policy of “zero tolerance” regarding discriminatory behavior of any kind. This means everything from jokes and email to hiring and firing policies. Management must be aware that employees watch them for cues as to what is allowed in the workplace and what is not. Never forget that actions speak much louder than words. Owners, managers and supervisors must “talk the talk” and “walk the walk.” How easy would it be right now to prove that you condone harassment or a hostile work environment? If the answer is not “impossible,” there are steps you can take to protect your business. Put it in writing “Diversity,” “sensitivity training,” and “politically correct” are popular buzzwords for good reason. These are the tools and rules being used by corpo-
Create a plan that can reduce your risk of being sued by an employee over discrimination complaints. BY VINCENT STAZZONE rate America to promote harmony in the workplace, improve culture and prevent legal action resulting from harassment and discrimination. It is the employer’s responsibility to write and issue a policy stating that discrimination and harassment in the workplace will not be tolerated. Managers must then be trained on how to implement and enforce this policy. They must learn the necessity for having a diverse workforce and how to be sensitive about an employee’s age, race, disability, gender and religious affiliations. Educating management and employees about equitable and fair treatment for everyone is critical. Managers should also be knowledgeable of state and federal statutes prohibiting employment discrimination including: • Title VII of the Civil Rights Act of 1964 that prohibits employment discrimination on the basis of race, color, religion, gender, or national origin; • The Age Discrimination in Employment Act of 1967, as amended (ADEA), which prohibits employment discrimination against individuals 40 years of age and older; • The Equal Pay Act of 1963 (EPA), which prohibits Discrimination
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on the basis of gender in compensation for substantially similar work under similar conditions; and Title I of the Americans with Disabilities Act of 1990 (ADA), which prohibits employment discrimination on the basis of disability in both the the public and private sectors, excluding the federal government.
Start with a formal policy A written policy prohibiting employment discrimination and harassment is a necessity. It forms the foundation for company culture and is the basis for management and employee training. While the list below is not allinclusive, some of the more common elements in an anti-discrimination policy are: 1. Definitions of discrimination and harassment (available at the EEOC website located at www. eeoc.gov). 2. Declaration of a “zero tolerance” policy. 3. A list of persons within the company to whom employees must report discrimination. 4. Steps the company will take upon receipt of an employee complaint (investigations, etc.). 5. How the employee will be advised of the general outcome of the complaint. Biggest mistakes made by employers • Mishandling of claims or concerns expressed by employees. • Failure to take action when the complaint is made. • Reluctance to address issue. • Failure to conduct a thorough investigation. • Failure to take appropriate action against the perpetrator. • Failure to document the investigation and actions taken and keep the records. • Improperly dealing with the comwww.fiada.com
•
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plaint. Failure to use extreme caution when taking any action that concerns the complainant, particularly during or immediately after the investigation. Failure to keep employees informed. Failure to know employee and supervisor rights and responsibilities. Failure to have and then review anti¬discrimination policies on a regular basis.
Other best practices There are many areas of your business that require attention to detail and sound policies, including: • Develop an employee handbook — it is an excellent place to include a discrimination policy. • Hiring, counseling (poor performance), performance evaluations and termination policies must be documented and well understood by employees and management. • Remember that sexual harassment is a form of sex discrimination. • Contact legal counsel for assistance in implementing an “Employment Arbitration Program.” • Train, educate and inform. Discrimination and harassment claims are on the rise nationwide. Make sure your business is proactive and takes decisive action to prevent legal consequences that can damage your company’s financial health and reputation. And make sure to consult with your own legal counsel regarding any actions you take regarding discrimination in your workplace. For questions about this loss prevention topic, contact FIADA’s Insurance Agent of Record, Vincent Stazzone of Williams and Stazzone Insurance at 800-868-1235 x114.
eHarassment?
E
mail and cell phones allow people to stay connected whether they are in the office, at home or at the beach. With the increased reliance on e-mail and cell phones (both business and personal) in the workplace, there is an upswing in harassment and discrimination via e-mail and texting. Why is this important to employers? If inappropriate messages or pictures (such as those related to sex, race, gender or age) are sent on company time, via company equipment, or affects an employee’s ability to perform his or her job, the company should investigate the claim further. For example, if an employee uses company email or a company business cell phone to harass another employee or if an employee is using personal e-mail or a personal cell phone during work hours to harass another employee, these situations could lead to employer liability if not addressed. What can you do? Make sure that e-mail or cell phone harassment is treated just like any other form of harassment. E-mail or cell phone harassment should be incorporated in company harassment policies and integrated in any harassment training. Make sure that employees understand the consequences of those inappropriate behaviors. In addition, if a complaint is received by an employer, it should be investigated like any other complaint of harassment. Article courtesy of Landrum Professional. Read more HR articles on their website at landrumhr. com/blog.
April 2012 — Independent Dealer — 25
INDUSTRY NEWS New Dealers Required to Provide Electronic Fingerprints Effective April 1, 2012 the Department will discontinue accepting hard copies of fingerprint cards from dealer applicants. Dealer applicants must use a FDLE approved Service provider to get their electronic fingerprints done when they are ready to submit their application for a dealer’s license to the Regional Office. A list of the FDLE approved Service providers can be accessed at the Department’s website at http:// flhsmv.gov/dmv/FDLEApproved ServiceProviderListForElectronic Fingerprints.pdf. The dealer applicant must provide the electronic fingerprint service provider an ORI number for routing the criminal history records. The ORI number for the Dealer License Section is ORI# FFL921700Z. Also to be included with the application is a proof of their electronic fingerprint receipt from a FDLE approved service provider. Additional valuable information on licensing procedures and requirements can be accessed at the Department’s website at http://www. flhsmv.gov/html/titlinf.html. Click on “Dealer, Manufacturer, Distributor and Importer Information.” Questions can also be answered by phone by calling 850-617-3003 9 (prompt #1).
NIADA Partners with Warrantech For All-New Certified Pre-Owned Vehicle Program The National Independent Automobile Dealers Association (NIADA) has selected Warrantech, an AmTrust Financial Services company, to administer its all-new NIADA Certified Pre-Owned Vehicle Program (CPO). The NIADA CPO Program is the premier certification option for independent automobile dealerships seeking to more effectively compete in the Certified Pre-Owned vehicle market. Warrantech, a leading provider of extended service contracts for the automotive industry will administer the plan, handle and address all post-sale customer needs, customize dealer and consumer marketing materials and work closely with NIADA’s state affiliate network to launch the program nationwide in May 2012. This partnership allows for a perfect mix of NIADA dealers committed to superior quality and service and an industry leading service contract company that can give them the products & support their customers are looking for. With three unique plans under the NIADA CPO Program, dealers will be able to select the option that is right for their market and their customer base. These options include: 1. 3 month / 3,000 miles limited warranty (Includes 36 months / 36,000 miles engine and AC component coverage) 2. 6 month / 6,000 miles limited warranty (Includes 36 months / 36,000 miles engine and AC component coverage) 3. 12 month / 12,000 miles limited warranty These NIADA CPO limited warranty options will include coverage of: engine, air conditioner, turbo or supercharger, automatic and manual transmission, transfer case, drive axle, steering components, select electrical components, and seals and gaskets. For more consumer choice and confidence, the NIADA CPO limited warranty options above can be supplemented by adding the NIADA Total Care or the NIADA Total Care Plus coverage that includes: front and rear suspension, brakes, fuel system, cooling system, and additional electrical components. In addition to this important coverage, NIADA and Warrantech will provide dealers with comprehensive sales training on how to utilize the CPO program to sell more vehicles and extended service contracts, as well as marketing support which will include in-store signage and promotional materials.
IMPORTANT NOTICE TO SALVAGE DEALERS The Florida Legislature passed House Bill 1101 that exempts salvage motor vehicle dealers from having to carry certain types of insurance coverage under certain circumstances. This law will become effective July 1, 2012. Due to the above legislative changes, salvage dealer license applicants’ will not be required to submit proof of garage liability insurance coverage with their application for a salvage dealer’s license or renewal. 26 — Independent Dealer — April 2012
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April 2012 — Independent Dealer — 27
GARAGE LIABILITY & CAR RENTAL SPECIALISTS garage liaBilitY SPeCialiStS FIADA Agent of Record Exclusive Markets Package Policies Competitive Rates Fast, Easy Quotes One Stop Insurance Shop Lease Here / Pay Here Program
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2011-2012 FIADA EXECUTIVE COMMITTEE:
CHRISTOPHER LEEDOM Senior Vice President AutoMaxx Sarasota, FL (941) 309-1111
DAVID COX, CMD Regional Vice President Cox Motors, L.L.C. Lakeland, FL (863) 686-9300
FRANK FUZY Regional Vice President Century Motors of S. FL Pompano Beach, FL (954) 785-0369
JIM KAGILIERY Chairman of the Board J.D. Byrider Jacksonville, FL (904) 400-6190
DINO MERCURIO Secretary Independent Credit, Inc. West Palm Beach, FL (561) 686-8673
JOHN COUSINS Treasurer Southeast Car Agency Gainesville, FL (352) 377-7787
STEVE MARBAIS GEORGE HICKEY Regional Vice President Regional Vice President Marbais Enterprises, Inc. Bond Auto Sales Ocoee, FL Tampa, FL (407) 877-7422 (813) 238-7478
PAUL MATTON Regional Vice President Park Auto Mall Pinellas Park, FL (727) 639-1112
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April 2012 — Independent Dealer — 29
FLORIDA INDEPENDENT AUTOMOBILE DEALERS ASSOCIATION
2012 ANNUAL CONVENTION & EXPO
NO HOCUS POCUS, JUST SOLID INFORMATION THAT WILL MAKE YOUR DEALERSHIP’S SALES SHINE. FIND IT AND MORE AT FIADA’S ANNUAL CONVENTION AND EXPO. Scan this code to see convention details and to register.
OCT. 11-13, 2012 BOCA RESORT BOCA RATON, FLORIDA FIND OUT MORE ONLINE @ WWW.
FIADA.COM
30 — Independent Dealer — April 2012
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FIADA 2012 ANNUAL CONVENTION & EXPO BOCA RATON, FL
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April 2012 — Independent Dealer — 31
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