FIADA 1940-2015
Y E A R S
APRIL 2016
www.FIADA.com
IT’S A WRAP
Information and Insight for Florida Used Car Dealers
The sun has set on the 2016 Florida Legislative Session with some exciting new legislation for auto dealers. Get the full legislative wrapup of the bills that passed and the ones that didn’t on PAGE 16.
FULTON, MO PERMIT NO. 38
PA I D PRST STD U.S. POSTAGE
www.fiada.com
April 2016 — Independent Dealer — 1
PAID ADVERTISING
2 — Independent Dealer — April 2016
www.fiada.com
Dealer Independent
MAILING ADDRESS 1840 Fiddler Court Tallahassee, FL 32308 TELEPHONE (850) 385-2712 (800) 237-0448 FAX (850) 385-3251 WEBSITE www.FIADA.com EXECUTIVE COMMITTEE Jim Winterick, Sr. President Lisa Compagno Senior Vice President Dino Mercurio Chairman of the Board Govinda Romero Secretary Scott Lanier Treasurer Brad Joel Regional Vice President Christopher Leedom Regional Vice President Steve Marbais, CMD Regional Vice President Brandi Noegel Regional Vice President Phil Risley Regional Vice President FIADA STAFF Lisette Mariner, CAE Executive Director Terry Myers Educational Instructor Jason Berthiaume Education and Marketing Coordinator Amelia Tillman Membership Director Christy Taylor Editorial/Advertising
POSTMASTER:
Contents April 2016
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 Jim Winterick, Sr.
6
Executive Director’s Message Lisette Mariner, CAE
8
Back to Basics FIADA Dealer Training School Instructor Terry Myers updates information on cursbtoning fines, and title and registrations for out of State customers.
10
Member News
12
5 Fresh Ways to Spring Clean Your Social Media Strategy Don’t let your social media clutter turn off potential customers.
14
Member Spotlight Clyde Walters is full of pride and joy for the business he loves.
16
Legislative Update Get the final report from the 2016 Legislative Session from FIADA Lobbyist Sandra Mortham.
22
The Psychology of Selling Don’t say no before your customers do. With a few well placed questions you can add value to any product.
26
A Look at Current Legal Issues Attorneys Tom Hudson and Nicole Munro recap recent federal and legal developments of interest to dealers.
28
Industry News
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.
www.fiada.com
April 2016 — Independent Dealer — 3
FROM THE PRESIDENT
Are You Willing to Gamble? BY JIM WINTERICK, SR., FIADA PRESIDENT
M
ost of us are averse to throwing our financial future to an unreasonable risk. I believe most of us think we will wager on our business acumen. Most of us understand the risks involved in everyday living. We take the necessary safety precautions such as wearing our seat belt, not texting while driving and being cautious and conscientious of our surroundings.
of dealer that leaves things up to others to decide the outcome of your investments? I have my doubts as to your allowing someone or something else to be the deciding factor in your financial interests. Ask yourself this, “am I willing to let others decide my success?” This is what you can do to assure your viability as an Independent Dealer tomorrow and many more to come. Join
As part of our business, we develop a business plan. We evaluate our assets to In other words, get involved in the success of your accomplish our goals. We hire and train our staffs and understand that people Association and your continued ability to operate a are our greatest asset. We are constantly profitable dealership. looking for better ways to advance the bottom line of our endeavors. Most of the FIADA; the only organization dedicated to the continued us know this business is not a get rich scheme. We put the growth and success of the used car and truck dealer. If you are retention of our customer as paramount to our enterprises already a member get involved in your association, help us well-being. with signing a new member. You can join in supporting our PAC fund which we use to support politicos that support our Most of us take our physical and financial health into our businesses. Come to our quarterly board meetings around the decisions in everyday life. After all physical well-being is as state. Come to our upcoming convention in Orlando. In others important as anything in this life. As age becomes me I am words, get involved in the success of your Association and your grateful as to my physical well-being, more so than in my continued ability to operate a profitable dealership. unappreciative youth. For that matter my gratitude level has increased with my years in appreciation of the gifts in my life. I It’s not someone else’s association, it is yours. Our FIADA wonder if you feel the same? works for us the Independent Dealers of the State of Florida. Profit is a good word with us! So the question is, what are you willing to gamble? Are you a supporter of your association? You know, the Florida Independent Automobile Dealers Association! Are you willing Jim Winterick Sr. to gamble your future, and the future of the used car dealer FIADA President industry on not being involved in our livelihood? Where do you come down on growing our membership? Are you the type 4 — Independent Dealer — April 2016
www.fiada.com
PAID ADVERTISING
www.fiada.com
April 2016 — Independent Dealer — 5
EXECUTIVE DIREC TOR’S MESSAGE
What Would It Take to Get You More Engaged? BY LISET TE MARINER, CAE, EXECUTIVE DIRECTOR
T
hat is the $20,000 question. It is a question I would like to pose to you and ask you to really consider and think about. Your answer could revolutionize the used car industry. If we were able to get our members more involved in the Association the FIADA would become an even bigger force to be reckoned with. There is just so much we could accomplish. This is a question that many of us in the Association world struggle with these days. Times have changed. In the hey-day of our history people not only looked to the FIADA as a resource but also as a social club. They made life-long friends at the conventions and board meetings and would travel anywhere in the State to see each other again. Today, with the invention of Facebook and smartphones, we just aren’t motivated like that anymore. A daily check of status posts and feeds keeps us up-to-date on our friends and acquaintances and there is less need to “catch up” and hang out. Plus, time is scarce and many people today would rather spend whatever precious free time they have at home with family. I understand that and appreciate it, and actually feel the same way. But, I also can see the potential if more of our members could commit just a small percentage of their time to getting more involved. We aren’t talking about weekly or even monthly commitments. If we could increase participation at our Board Meetings, which are quarterly, and Annual Convention that would be an impactful first start. This message is not meant to sound needy. We already have an amazing group of dealers and associates who are active and involved and lead this Association in a fine way. We are highly regarded and respected in Tallahassee (just check out our accomplishments in the Session this year on page 16). We are one of the top state affiliates of NIADA. Our training and professional development programs are top-rate and leaders in our industry and beyond. We could just be that much better if more of our members were actively engaged in shaping our agenda and future. FIADA President Jim Winterick and I just returned 6 — Independent Dealer — April 2016
from attending a NIADA meeting that was focused on Board development. We learned a lot and came back energized and ready to work. One thing we discussed was really focusing on forward-thinking leadership and strategic planning. Over the next few months we will start the process of evaluating and “strategerizing” our goals and missions for the next few years. We actually already started down that road by polling attendees at our April Town Hall meeting. I am still tabulating the results, but I am looking forward to analyzing this feedback and using it in the process. If you weren’’t able to attend the Town Hall, I would still welcome your input. Head over to www.FIADA.com and download a copy of the questionnaire. Fill it out, send it back and help us build something you FIADA Engagement Questionnaire want to be a part of. On the back of the questionnaire, I asked the attendees to answer one more question that our Senior Vice President Lisa Compagno posed. “What would it take to get you to be Download the engagement more involved in questionnaire at www.FIADA.com the Association?” and share your thoughts on what you I would invite would like to see FIADA’s priorities be. everyone reading this article to answer that question as well. Call me at (800) 237-0448 and share your thoughts or send them to me in an email at lisette@fiada.com. I look forward to the answers!
Thank you for joining us at the Florida Independent Automobile Dealers Association Town Hall Meeting. Help us continue to make a difference for businesses like yours by sharing information about yourself and your company’s needs. Please take a few moments to answer the following questions so that we may address issues important to you regarding a healthy and growing business climate for our state. Name: _______________________________________
Title: __________________________________
Company: ____________________________________
E-‐mail: ________________________________
Phone: _______________________________________
Cell: __________________________________
Address: _____________________________________ City: _____________________ Zip: _______________
When I think about my personal engagement and interests, I would like to be more involved in (check more than one if applicable): _____ Membership
____ Legislative
____ Convention
____ Member Benefits
During the next year, what issues are most important to your company?
___________________________________________________________________________________________ ___________________________________________________________________________________________ Is there a major issue that would be most devastating or helpful to your company?
___________________________________________________________________________________________ ___________________________________________________________________________________________ Is there a product or service that you would like to see FIADA provide?
___________________________________________________________________________________________
Is there anything else you think we should know about you, your interests or your company that would better enable us to serve you? ___________________________________________________________________________________________
___________________________________________________________________________________________
www.fiada.com
PAID ADVERTISING
www.fiada.com
April 2016 — Independent Dealer — 7
BACK TO BASICS
Curbstoners, Titles and Registrations...Oh My BY TERRY MYERS
From curbstoning corrections to what you should do about titles and registrations for a non-Florida customer, this month we talk about it all.
O
ne thing I like to share with my dealer students is, “If you mess up, ‘fess’ up.” In last month’s Test Your Dealer IQ puzzler we asked, “What is the new fine for Curbstoners?” I am happy to announce it is $500, not $250.
What do you think? Dealers, Division of Motorist Services, Law Enforcement, Code Enforcement, Department of Revenue, Internal Revenue Service, let the FIADA know your thoughts.
More good news is that the offender must provide proof they own the vehicle at the office of the fining agency, such as the Division of Motorist Services, Law Enforcement or Code Enforcement. Title jumpers will have to get the title in their name, pay title, registration and sales tax. Then, they get to pay towing and storage. Title jumpers, innocent or not, are thieves and deserve to get caught. They are stealing from your business, the Florida Department of Revenue and the Internal Revenue Service. It is a multimillion dollar, illegal business. It would be a good idea if the fining agency were to voluntarily or mandatorily inform the Department of Revenue and the Internal Revenue Service when these infractions occur, especially with the ‘three in twelve months” offenders. 8 — Independent Dealer — April 2016
to acquire form HSMV 84061, http:// www.flhsmv.gov/dmv/forms/bfo/84061. pdf, Declaration Affidavit for a Motor Vehicle Which Will be Titled and Registered in Another State or Country from the customer. It does not matter if the customer drives the vehicle off the dealer’s lot or the vehicle is shipped to the customer, get the form. It is the dealer’s responsibility to have the affidavit signed by the customer. Then, place it into the Deal Jacket. The form does not require notarization. It contains the perjury clause, “Under penalty of perjury, I declare I have read the foregoing document and the facts stated in it are true.” This has nothing to do with sales tax. This only relates to who will be doing Title and Registration on that vehicle in the state or country where the vehicle will reside. Dealers who choose to do title and registration on behalf of their customer need to contact the state or country where this is to happen, to insure they get it right. For most dealers, the K.I.S.S. principal applies: Keep It Simple Stud and Stud-ette and use the HSMV 84061. Remember: “What you know makes you money! What you don’t know costs you a fortune!”
Now, for the rest of the story. Let’s take a look at titling and registration of a Non-Florida customer’s vehicle by that customer. Dealers are not required to do title and registration for a non-Florida customer. Upon completion of this kind of transaction, the dealer needs
Articles are the opinion of the author and are not intended to be legal or accounting advice. The intent is to share thoughts and concepts that help the business owner(s) find new and perhaps revisit, ways to be as successful as they are capable of being. Terry can be reached at (727) 804-7375. Email: tmyers@floridaautodealerschool.com. Feedback is appreciated and encouraged. Terry LB Myers, author, lecturer, FIADA instructor, FADS owner/ instructor.
www.fiada.com
PAID ADVERTISING
www.fiada.com
April 2016 — Independent Dealer — 9
MEMBERSHIP NEWS
Renewing Members
New Members
MARCH 2016
499 DOWNANDDRIVETODAY Port Charlotte, Florida Jim White Sponsor: FIADA
JAD-CAR Kissimmee, Florida Carlos Melendez JAD-CAR Sponsor: FIADA
PALMETTO CAR CENTER Doral, Florida Omar Risso Sponsor: Equifax
AFFORDABLE AUTO CUSTOM SALES Lake City, Florida Sherman Stanley Sponsor: John Cousins/Dealers A/A
JAY AUTO SALES CORP Opa Locka, Florida Yasneli Tejera Sponsor: www.FIADA.com
PAUL CORBETT Ponte Vedra Beach, Florida Paul Corbett Sponsor: www.FIADA.com
APRIL LAWSON Fort Walton Beach, Florida Sponsor: Terry Myers
LEGENDARY SPECIALTY IMPORT Sarasota, Florida Patrick Bellanger Sponsor: Jennifer Finlay
SOUTH FLORIDA TRUCK SALES Miami, Florida Stephanie Rodriguez Sponsor: Maximo Rodriguez
MODERN CORP AUTO SALES Fort Myers, Florida Abby DiLeonardo Sponsor: Al Veglia
SYNERGY AUTO DEALS Davie, Florida Steeve Virgile Sponsor: FIADA
NATURE COAST MOTORS Trenton, Florida George Shultz Sponsor: John Cousins/Dealers A/A
USA FINE CARS Naples, Florida Ynozair “Gyno” Georges Sponsor: FIADA
OSTY CORP Davie, Florida Marco A Osuna Sponsor: FIADA
WESTSIDE MOTOR SALES Oldsmar, Florida Joe Petrillo Sponsor: Terry Myers
OVERSTOCK AUTO LLC Valrico, Florida Marco Caporale Overstock Auto LLC Sponsor: Wayne Reaves
YOUR WHEELS AUTO SALES Brandon, Florida Roy Rodriguez Sponsor: FIADA
ASI 3 LLC Tampa, Florida Donna Pratten Sponsor: FIADA AUTO EMPIRE LLC Orlando, Florida Vicky Reynolds Sponsor: Jennifer Finlay AUTO SALES PLAZA INC West Palm Beach, Florida Benjamin Stevens Sponsor: Terry Myers AUTOBOX OF TAMPA LLC Tampa, Florida Yavil Arroyo Sponsor: Terry Myers BASELINE AUTO SALES, INC. Ocala, Florida Jack Haigh Sponsor: FIADA BEVERLY GOINS Merritt Island, Florida Sponsor: Jennifer Finlay CALAMP Irvine, California Merissa Vulpis Sponsor: FIADA CAR FACTORY OUTLET Miami, Florida Nick Mendizabal Sponsor: Carrie Keiper DAVID GONZALEZ Hollywood, Florida David Gonzalez Sponsor: FIADA FLORIDA WHOLESALE LIQUIDATORS Port Orange, Florida Jeff Brabham Sponsor: FIADA GR AUTO BODY LLC Wilton Manors, Florida Rame Masarwe Sponsor: FIADA GULF COAST AUTO SALES INC Fort Myers, Florida John Hurley Sponsor: Amelia Tillman
Rejoining Members
MARCH 2016
ADESA OCALA Ocala, Florida Eric Clippinger Sponsor: Amelia Tillman
MISSION AUTO SALES Miami, Florida Ferdinand Fertil Sponsor: Amelia Tillman
ALLEN’S FRIENDLY A/S INC. Sanford, Florida Joyce Pyle Sponsor: Amelia Tillman
MOBILITY FREEDOM, INC. Richfield, Ohio Aaron Gardner Sponsor: FIADA
AUTO MOBILITY SALES DBA MOBILITY WORKS Richfield, Ohio Aaron Gardner Sponsor: Amelia Tillman
NATIONAL TRUCK CENTER Miami, Florida Benito Vera Sponsor: Amelia Tillman
AUTOMATCH USA, LLC Lincolnshire, Illinois Donna Cody AutoMatch USA Sponsor: Camping World
RIVERLAND SALES LLC Trenton, Florida Jackie Barron Sponsor: Terry Myers
BARTON USED CARS SOUTH INC. Ponte Vedra Beach, Florida Bart Barton Sponsor: Lisette Mariner
SOUTHERN AUTO SALES OF DAYTONA INC. Holly Hill, Florida joseph beckham Sponsor: Amelia Tillman
CARS N CARS Miami, Florida Humberto Espinosa Sponsor: www.FIADA.com
TEN STARS AUTO SALES INC Kissimmee, Florida Dhanessar Dammar Sponsor: Amelia Tillman
LATIN MOTORS Miami, Florida Santiago Herrara Sponsor: Amelia Tillman
ZENACARS Saint Petersburg, Florida Gregory Fasca Sponsor: FIADA
10 — Independent Dealer — April 2016
30+ Year Members Ray’s Motor Sales, Inc. 20+ Year Members Bubba Hill Auto Plaza, Inc. J.D. Sanders, Inc. O’Donnell Automotive Shade Tree Auto Repair The Truck Center, Inc.
MARCH 2016 Lake Wales, Florida Panama City, Florida Alachua, Florida Orlando, Florida Bartow, Florida Ft Walton Bch, Florida
10+ Year Members Advanced Vehicle Modifications, Inc B & T Enterprise Services, Inc dba 5 Star A/S Bargain Auto Sales of Lakeland, Inc. Beach Boulevard Automotive Butler Auto Recycling Casey’s Auto Wholesale Dewitt Motors Donny Mills Auto Sales, Inc. Ed Tillman Auto Sales Global Wholesale Motor Company Kelly Kronenberg, Attorneys at Law Tampa Carstore, Inc. Vaughn Motorgroup
Ocala, Florida Brooksville, Florida Lakeland, Florida Jacksonville, Florida Pensacola, Florida Sarasota, Florida Sarasota, Florida Largo, Florida Jacksonville, Florida Fort Myers, Florida Tampa, Florida Tampa, Florida Jacksonville, Florida
Under 10 Year Members Ace Motors Inc Advantage Funding AP Motorsales LLC B&A Auto Sales of Central Florida Bay Harbor Auto Sales, LLC Big Truck Rental LLC BK Auto Sales Inc BNM Enterprises, LLC C & D Auto Exchange C&D Getty Auto Sales LLC Charles A Krblich, PA, CPAs Cochran Motorsports Inc David Sabiston Used Car Sales LLC Diamond Warranty Corp. Discovery Auto Center LLC Gen-X Motors Golden Eagle Management Services LLC J.D. Byrider Jimmie’s Auto Sales Kurkin Brandes LLP Lane Mashburn Inc. dba Amelia Auto Mart LB Auto Trading Mcphails Auto Sales Mikes Cars & Trucks Naples Motorsports RouteOne, LLC RTG Auto Sales, LLC Schirras Auto Inc Sharp Deal Automobiles Corp. SRQ Auto LLC Tampa Hybrids Inc. The Surety Group Timeless Motors Vizion Automotive LLC Wheel City Auto Finance Centers Yaris LLC Zeal Motor Group Inc.
Saint Petersburg, Florida New Hyde Park, New York Anthony, Florida Winter Garden, Florida Middleburg, Florida Tampa, Florida Coral Springs, Florida Saint Augustine, Florida Cape Coral, Florida Port Orange, Florida Fort Lauderdale, Florida Hastings, Florida Fort Myers, Florida Wilkes Barre, Pennsylvania Tampa, Florida Merritt Island, Florida Land O Lakes, Florida Panama City, Florida Madison, Florida Miami, Florida Fernandina Beach, Florida Orlando, Florida Sebring, Florida Port Orange, Florida Naples, Florida Farmington Hills, Michigan Tarpon Spings, Florida West Palm Beach, Florida Hialeah, Florida Bradenton, Florida Lutz, Florida Mount Juliet, Tennessee Lakeland, Florida Palm Bay, Florida Sioux Falls, South Dakota Orlando, Florida Maitland, Florida
www.fiada.com
Our online application is simple and easy with a quick turnaround time. FIADA members get special discounts. Go to DealersInsurance.com today to get started.
www.fiada.com
April 2016 — Independent Dealer — 11
SOCIAL MEDIA
5 Fresh Ways to Spring Clean Your Social Media Strategy BY KATHI KRUSE, KRUSE CONTROL
Make a fresh start in your social media marketing with some targeted tidying up of content and message.
N
othing feels better than purging old stuff. But, it’s not always easy because we like our stuff and it’s sometimes tough to let it go.
Our stuff makes us feel better, even when it’s not serving us anymore. We know purging is good for us but the removal process isn’t comfortable. Springtime is the season where we assess our stuff and ideally, get rid of all things that don’t work for us anymore. This cleansing process should include your social media marketing and advertising strategies. What do you have lurking in your social media marketing closet that needs to find its way to the trash can? It may seem hard to believe but some companies still consider social media as a fad; a seemingly meaningless way that people share pictures of their lunch. To this way of thinking I say, go ahead, you’re entitled to your opinion. That thinking leaves the marketing landscape wide open for those who want to capture more business. Social media creates more opportunities for those who 12 — Independent Dealer — April 2016
embrace this shift in the way we all communicate. Those who have adapted, move away from blasting messages to disinterested parties and move toward attracting, engaging and selling to today’s hyper-connected buyers.
•
Today, customers look for ways to align themselves with brands that matter to them. If social media marketing can connect you with interested buyers, why wouldn’t you consider it?
•
If you’re on the fence about social, take a few minutes and digest these recent stats and facts: • 71% of all Internet users are on Facebook. (Pew Research) • There are 968 million active daily users on Facebook. Users spend, on average, 20 minutes per day on the site. (Infinit Datum) • More than half of all online adults 65 and older (56%) use Facebook. This represents nearly a third (31%) of all seniors. (Pew Research) • 84.7% of US companies with 100 employees or more used Facebook for marketing activities in 2015. That share is projected to rise to 85.3% in 2016, and 85.8% in 2017. (MediaPost)
•
•
•
Though Facebook is the most important social network to marketers overall, LinkedIn is tops with B2B marketers—41% say it’s the most important network they use. (V3 Broadsuite Blog) 25% of Twitter advertising budgets are dedicated to mobile, and 89% of Twitter’s 1Q15 revenue came from mobile. (Infini Datum) 30% of all U.S. social media users are on Instagram. 90% of Instagram users are under age 35, and about a third of all U.S. teens consider Instagram to be their favorite social network. (DMR) 32% of U.S. companies with 100 employees or more used Instagram for marketing activities in 2015. eMarketer predicts that number will jump to nearly 49% in 2016, and, by 2017, increase to 70.7% of U.S. companies. (MediaPost) There are 3.5 billion “likes” on Instagram daily. (Infini Datum)
It’s a little tough to argue with those numbers, right? It’s clear that buyers are relying on social media marketing www.fiada.com
It’s Springtime and it’s time to assess what you’re currently doing to market your business on social media. It’s time to decide what’s working, what’s not working, and to jettison some of your excess baggage. The following five actions will help you succeed with social media marketing and hopefully, inspire you with ways to improve.
1
Clear Away The Junk. Stop posting meaningless nonsense. “Meaningless nonsense” is content that’s generic, run-of-the-mill, and uninspired. Think about it this way: if a TV station played the same show over and over, even with different actors, how long would you tune in? A lot of us have spouses who enjoy clicking through channels. Some of us do this ourselves…always searching for something we haven’t seen that’s interesting. Don’t invite your fans, followers and prospects to “change the channel.” Refrain from the following: • Articles from larger media outlets that everyone else can post too. • Content created for you by your “social media marketing company” that they’re posting on every other single one of their other clients’ social media profiles. • Boring content that no one wants to engage with. • Spammy, ‘salesy’ messages that turn people off because it’s too much, too soon.
2
Avoid Trying to Take Shortcuts Strategy before tactics. As a social media strategist, I meet with companies who say, “Social Media isn’t a place for us. It doesn’t work for our business.” Most of the time, these companies have not defined their social media strategy and have resorted to the latest tips, tricks or hacks that appear in their inbox. www.fiada.com
There are no shortcuts to success, social media or otherwise. There ARE smart strategies that save time, effort and money. Don’t neglect the awesome power of Facebook advertising, too! Promoting your content and your page, increases customer engagement. Strategic Facebook ads drive leads and sales using focused campaigns that reach your most interested prospects.
3
Dust Off Your Most Valuable Asset. Have you ever cleaned out your closet and found something
stuck in the back with dust on it, pulled it out and realized, “Oh hey, I remember this! It’s awesome!” Let’s face it: creating content for your website and social media can be super hard. But, it doesn’t have to be if you “crowdsource” your ideas. Your most valuable asset in content creation is your employees. Heck, some may be already using social media as a way to network and engage with prospects. Leverage the power Continued on page 15.
1000 Vehicles Weekly!
PAID ADVERTISING
to inform their purchase decisions.
Wednesday (9:30am)
Dealer Only Sale - 700+ Vehicles
Thursday (7pm)
Public Sale - 300+ Vehicles Every Sale In April: Putt For A Chance To Win Cash! Masters Sale - Wednesday April 20th 1000 Units Expected! Golf Tournament - Thursday April 21st with $25,000 Hole In One Challenge, Free Lunch & Cash Prizes!
www.southeasternaa.com | 1712 Dean Forest Rd | Savannah, GA 31408 | 912-965-9901
April 2016 — Independent Dealer — 13
MEMBER SPOTLIGHT
Clyde Walters: Pride and Joy BY CHRISTY TAYLOR
Clyde Walters is almost 90 and probably one of the oldest car dealers in Florida, but just because he is one of FIADA’s senior members does not mean he’s ready to slow down.
MEMBER 2016
Do you know a member who deserves the spotlight? Let us know at info@FIADA.com.
C
lyde Walters just renewed his motor vehicle dealer license for two years. When it expires, he will be celebrating his 90th birthday. He’s already looking forward to renewing his license again after that. Clyde hasn’t always been a car dealer. He started out as a motorcycle cop in 1952. When he retired in 1972, he wasn’t really ready to quit working but he did not yet know what he wanted to do next. “I started thinking, my father had been a car dealer back in the Twenties, and I thought, ‘maybe I’m a car dealer and don’t know it,” Clyde said. With that, he actually started a motorcycle dealership called Florida Cycle, Inc. in St. Petersburg and though he loved selling bikes he was not making much money. He got a motor vehicle license and headed to the auction this time looking for cars instead of motorcycles. The name changed to Ace Motors, Inc. and the cycles were replaced with cars and trucks. Clyde loves coming to work everyday and says one of the things he is most proud of is that in all the years he has been in business, he has never had a complaint brought against him. That’s 48 years of selling with a perfect record. 14 — Independent Dealer — April 2016
(Left) Clyde in his motorcycle days. (Right) Clyde’s handmade Pride and Joy business card. Ace Motors isn’t very large, only keeping about 20 to 25 cars on the lot at a time, but it is prime property. Clyde has been approached many times by the franchise dealer across the street to sell. Each time he’s asked though, he declines. He likes his little lot and the customers it brings in.
be especially clear on expectations. He says he’s a BHPH dealer, and reminds customers that actually stands for “Better Have Payment Handy.”
“I don’t deal in numbers, like the bigger dealers do. I deal in people,” Clyde said.
Clyde looks at the FIADA decal on his window as a sign of credibility and explains to his customers why membership in the Association is important. He also appreciates the way FIADA keeps him in the loop and looks out for all dealers.
The people keep coming back as Clyde estimates about 85 percent of his business is repeat customers. He has sold cars to generations of families and loves having such a rapport with them. His secret is always being up-front and honest with his customers, trying to
To help people remember him, Clyde came up with a clever idea for his business cards. He puts a picture of Pride furniture polish and Joy dish soap to signify how his work is his “pride and joy.” It’s a fun and memorable statement, just like him. www.fiada.com
SOCIAL MEDIA continued from Page 13.
of your employees’ expertise and enthusiasm. When employees’ ideas are published online, they become more visible to prospects. You get great content, they get to be recognized experts.
4
Focus on What Matters Most to Your Customers. Successful social media marketing solves customer’s problems. It’s a communication tool to answer their questions, concerns and problems. Social media is an affordable and valuable way to connect with interested buyers. Providing entertaining, engaging and empathetic content attracts people and keeps them coming back for more.
5
•
And if you ever see the word “easy” to describe social media marketing, just know it’s a myth. While it may look easy, success is not. But it is easy to get the right answers, execute specific strategies to achieve your goals…and turn fans into customers. Take this Springtime to examine your strategies and be deliberate about getting rid of the dead weight. Focus your attention on attracting quality leads through social media and make room for some new sales! Kathi Kruse is a leading Social Media Strategist in the US and Canada. Her contribution and influence bridges across all platforms: Conferences, workshops, speaking events, webinars, and training curriculum. Read more articles at www.krusecontrolinc.com
PAID ADVERTISING
PAID ADVERTISING
Create New Habits. Once you’ve cleared away the old stuff, let’s replace that with new habits to reach your goals. • Assess your content assets now and decide what’s working for you and what’s not. • Develop a solid marketing plan. Remember: without goals and strategies, you will not have an effective ROI. • Audit your current marketing expenses to make sure everything
•
you’re doing is getting the results you desire. Designate one skilled, savvy person to oversee your social media marketing and online reputation. Set yourself up for success by using a Content Calendar to plan the topics you want to discuss and publish.
www.fiada.com
April 2016 — Independent Dealer — 15
L E G I S L AT I V E U P D AT E
It’s Over and Here’s What Happened BY SANDRA AND ALLEN MORTHAM, FIADA LOBBYISTS
O
n March 11, the 2016 Florida Legislative Session came to an end and I am pleased to report that on March 30 the Governor signed the agriculture bill that includs language allowing dealers the ability to bond a vehicle before a mechanics lien is placed. Congratulations to all, but especially Rob Sickles, Jim Winterick and Dino Mercurio for all of their tireless efforts on this one. It is amazing with all the bumps in the road that it is actually done. There were 1815 bills filed in 2016 and just over 260 passed. The bills that are killed are just as important as the ones that pass. For the past three years we’ve been successful in supporting legislation that has now become law, such as the increase in curbstoning fines, the reinstatement of the surrender stop and now the ability to bond a vehicle before a mechanic’s lien is placed. All great things for dealers. Some of the things never saw the light of day were new taxes, increased minimum wage, an advertising bill that would have mandated a dealers license, address, etc on all advertisements. Much of what is done behind the scenes that you rarely hear about are the things that were kept from happening to you. Below is a listing of those bills that were most relevant to small business and the industry that were tracked throughout session.
BILLS THAT PASSED
CS/CS/SB 772 (2016) REGULATED SERVICE PROVIDERS Also known as the Agriculture Bill Regulated Service Providers; Revising the composition of the Board of Professional Surveyors and Mappers; requiring the department to waive the initial registration fee for an intrastate mover for certain veterans, the spouses of such
veterans, or certain business entities that have a majority ownership held by such veterans or spouses; exempting water-related amusement rides operated by lodging and food service establishments and membership campgrounds, amusement rides at private, membership-only facilities, and nonprofit permanent facilities from certain safety standards; authorizing certain tax collector offices, upon approval and confirmation of license issuance by the department, to print and deliver concealed weapon or firearm licenses, etc. APPROPRIATION: $1,305,097.00 [FIADA priority lien language in this bill; allows dealer to bond vehicle] Effective Date: Except as otherwise expressly provided in this act and except for this section, which shall take effect upon becoming law, this act shall take effect July 1, 2016 Last Action: 3/30/2016 - Approved by Governor CS/CS/SB 7061: TRANSPORTATION Transportation; Establishing the Seaport Security Advisory Committee under the direction of the Florida Seaport Transportation and Economic Development Council; revising the circumstances under which the Department of Transportation is authorized to direct the removal of certain traffic control devices; authorizing the Department of Transportation to prohibit the operation of commercial megacycles on or across any road under its jurisdiction if it determines that such prohibition is necessary in the interest of safety; revising airport zoning regulation requirements; revising the membership of the governing board of the Tampa Bay Area Regional Transportation Authority, etc. Effective Date: 7/1/2016 Last Action: 3/30/16 Presented to the Governor Continued on page 18.
16 — Independent Dealer — April 2016
www.fiada.com
PAID ADVERTISING
www.fiada.com
April 2016 — Independent Dealer — 17
LEGISLATIVE REPORT continued from Page 16.
HB 7027 (2016) DEPARTMENT OF TRANSPORTATION Department of Transportation; Revises provisions for Florida Seaport Transportation & Economic Development Program, proposals to refinance transportation projects, facilities whose toll revenues may be used to secure bonds, & amendments to FDOT’s adopted work program; provides fines for certain commercial motor vehicles; authorizes FDOT to assume certain responsibilities of USDOT, enter into certain agreements related to federal surface transportation project delivery program, adopt rules & relevant federal environmental standards, & to establish program to assist small businesses; & establishes Florida Department of Transportation Financing Corporation. Effective Date: 7/1/2016 Last Action: 4/4/16 -chapter 2016-181 Became Law CS/CS/HB 231: MOTOR VEHICLE MANUFACTURER LICENSES Motor Vehicle Manufacturer Licenses; Revises provisions for denial, suspension, or revocation of license of manufacturer, factory branch, distributor, or importer of motor vehicles; revises provisions for certain audits of service-related payments or incentive payments to dealer by an applicant or licensee & timeframe for performance of such audits, provisions for denial or chargeback of claims, & provisions relating to certain adverse actions against dealer that sold or leased motor vehicle to customer who exported vehicle to foreign country or who resold vehicle; prohibits failure to make certain payments to motor vehicle dealer for temporary replacement vehicles & requiring or coercing dealer to purchase goods or services from vendor designated by applicant or licensee; & provides procedures for approval of dealer to purchase goods or services from vendor not designated by applicant or licensee. Effective Date: 3/24/2016 Last Action: 3/24/2016 - Chapter No. 2016-77 Became Law CS/CS/HB 659: AUTOMOBILE INSURANCE Automobile Insurance; Provides exception to provision that deems use of single zip code as rating territory for insurance rates to be unfairly discriminatory; provides duties for OIR concerning such rates; authorizes Florida Automobile JUA & joint underwriting plan approved by OIR to cancel personal lines or commercial policies within specified time for nonpayment of premium due to certain reasons; prohibits insured from cancelling policy or binder within specified time except under certain conditions; requires that certain standard form be approved by office & adopted by FSC, rather than approved by office or adopted by commission; revises standards 18 — Independent Dealer — April 2016
for compliance for specified billings for medical services; specifies additional entities that may receive reimbursement under Florida Motor Vehicle No-Fault Law regardless of whether they meet specified licensure requirement. Effective Date: 7/1/2016 Last Action: 3/28/2016 - Chapter No. 2016-133 Became Law CS/HB 875: MOTOR VEHICLE SERVICE AGREEMENT COMPANIES Motor Vehicle Service Agreement Companies; Revises & provides definitions relating to motor vehicle service agreement companies. Effective Date: 7/1/2016 Last Action: 3/10/2016 - Chapter No. 2016-60 Became Law
BILLS THAT FAILED
CS/SB 151 (2016) INSTALLATION OF TRACKING DEVICES OR TRACKING APPLICATIONS Installation of Tracking Devices or Tracking Applications; Authorizes certain persons, business entities, & private investigators to install tracking devices or tracking applications; removes provision concerning persons engaging private investigators. CS/CS/SB 1394 DEPARTMENT OF HIGHWAY SAFETY AND MOTOR VEHICLES Department of Highway Safety and Motor Vehicles; Requiring the driver of every other vehicle to take specified actions if a utility service vehicle displaying any visual signals or a service patrol vehicle displaying amber rotating or flashing lights is performing certain tasks on the roadside; authorizing, as of a specified date, a specified court to order a certain qualified sobriety and drug monitoring program under a specified pilot program as an alternative to the placement of an ignition interlock device; authorizing insurance companies to receive a salvage certificate of title or certificate of destruction from the department after a specified number of days after payment of a claim as of a specified date, subject to certain requirements, etc. CS/CS/SB 253 HIGHWAY SAFETY Highway Safety; Revises provisions relating to operation of motor vehicles and bicycles, turning at intersections, passing bicycles, & careless driving; provides penalties for specified infractions contributing to bodily injury of vulnerable user; requires hearing for specified offenses; directs law enforcement officer issuing citation for specified violations to note certain information on citation. Continued on page 20. www.fiada.com
PAID ADVERTISING
www.fiada.com
April 2016 — Independent Dealer — 19
LEGISLATIVE REPORT continued from Page 18.
CS/CS/CS/SB 562 CONSUMER DEBT COLLECTION Consumer Debt Collection; Specifying methods by which a debtor, represented by an attorney, may notify a creditor of such representation; specifying methods by which an attorney representing a debtor may notify a creditor of such representation; requiring a creditor to identify the manner by which a debtor may communicate notice of representation; providing that a creditor must cease direct communication with the debtor under certain circumstances, etc. CS/HB 713 CONSUMER DEBT COLLECTION Consumer Debt Collection; Revises provisions relating to communication with debtors represented by attorneys; specifies methods by which attorneys representing debtors may provide notice of such representation; prohibits false representations or deceptive or unfair debt collection practices. CS/HB 1087 PROTECTION OF MOTOR VEHICLE DEALERS’ CONSUMER DATA Protection of Motor Vehicle Dealers’ Consumer Data; Requires that licensee or third party comply with certain restrictions on reuse or disclosure of consumer data received from motor vehicle dealer, that upon request of motor vehicle dealer, licensee provide list of consumer data obtained & all persons to whom data has been disclosed, & that licensee indemnify motor vehicle dealer for certain claims or damages. CS/HB 1091 ADVERTISEMENT OF VEHICLE AND METALS PURCHASING Advertisement of Vehicle and Metals Purchasing; Requires person to be licensed by DHSMV as motor vehicle dealer to advertise for purchase or sale of motor vehicles; requires motor vehicle dealer advertisements to include certain information; prohibits unlicensed person from using certain vehicles to transport certain vehicles; provides for impoundment of wrecker or tow truck used in violation of licensure requirements; requires persons who advertise to provide services as secondary metals recycler to be registered with Department of Revenue; requires secondary metals recycler advertisements to include certain information; prohibits person not registered as secondary metals recycler from using wrecker or tow truck to transport certain metals; provides for impoundment of wrecker or tow truck used in violation of registration requirements; provides penalties. CS/HB 1131 RECOVERY AGENCIES Recovery Agencies; Revises definition of term “recovery agency.” CS/SB 1266 RECOVERY AGENCIES [Identical to HB 1131] 20 — Independent Dealer — April 2016
SB 6 STATE MINIMUM WAGE State Minimum Wage; Increasing the state minimum wage; prohibiting an employer from paying an employee at a rate less than the state minimum wage; removing the limitation restricting application of the state minimum wage only to individuals entitled to receive the federal minimum wage; deleting obsolete language, etc. HB 109 STATE MINIMUM WAGE [Identical to SB0006] SB 134 DRIVING SAFETY Driving Safety; Revising the definition of “wireless communications device”; prohibiting the use of cellular telephones and other wireless communications devices by drivers while in a school zone or school crossing or on school district property, etc. SB 364 SALES OF MOTOR VEHICLES POWERED BY ELECTRICITY OR HYDROGEN Sales of Motor Vehicles Powered by Electricity or Hydrogen; Exempting the sale of an electric vehicle and a hydrogen vehicle from the sales and use tax; defining the terms “electric vehicle” and “hydrogen vehicle”; providing for expiration, etc. SB 384 EMPLOYMENT PRACTICES Employment Practices; Citing this act as the “Florida Paid Family Care Leave Act”; requiring an employer to allow an employee to take paid family care leave to bond with a new child upon the child’s birth, adoption, or foster care placement; requiring an employer to provide notice to employees of the right to paid family care leave; revising the Florida Civil Rights Act of 1992 to prohibit specified employment practices on the basis of pregnancy, childbirth, or a related medical condition, etc. SB 1510 ADVERTISEMENT OF VEHICLE AND VESSEL PURCHASING Advertisement of Vehicle and Vessel Purchasing; Requiring a motor vehicle dealer who advertises the purchase of vehicles or vessels to display specified information on the sign or advertisement; prohibiting an unlicensed motor vehicle dealer or unregistered secondary metals recycler from dispatching a wrecker, tow truck, trailer, dolly, or other vehicle in response to an advertisement for the purchase of a vehicle or vessel, etc. HB 219 TAX-EXEMPT INCOME Tax-Exempt Income; Increases amount of income exempt from corporate income tax; increases amount of income exempt from franchise tax imposed on banks & savings associations; provides applicability. www.fiada.com
SB 366 SALES AND USE TAX EXEMPTION FOR HYBRID VEHICLES Sales and Use Tax Exemption for Hybrid Vehicles; Exempting the sale of a hybrid vehicle from the sales and use tax; defining the term “hybrid vehicle”, etc. SB 430 MOTOR VEHICLE MANUFACTURER LICENSES Motor Vehicle Manufacturer Licenses; Revising provisions for denial, suspension, or revocation of the license of a manufacturer, factory branch, distributor, or importer of motor vehicles; providing requirements for incentive payments made to motor vehicle dealers for making certain changes or additions to a dealer’s facility or signage; revising provisions for denial or chargeback of claims; prohibiting failure to make certain payments to a motor vehicle dealer for temporary replacement vehicles under certain circumstances; providing procedures for approval of a dealer to purchase goods or services from a vendor not designated by the applicant or licensee, etc. CS/SB 76 TAX-EXEMPT INCOME Tax-exempt Income; Increasing the amount of income that is exempt from the corporate income tax; increasing the amount of income that is exempt from the franchise tax imposed on banks and savings associations, etc. CS/CS/SB 332 HIGHWAY SAFETY Highway Safety; Revising provisions relating to the passing of a vehicle; exempting bicycles from provisions for passing a vehicle on the right under certain circumstances; revising provisions for turning at intersections; requiring motor vehicle operators to allow a group of bicycles to travel through an intersection under certain circumstances, etc.
LAST CHANCE TO
CREDITS
The DMV requires you to renew your Continuing Education (CE) Credits every two years. If you last took a CE course in 2014, you must complete another class by April 30, 2016. FIADA has these easy and convenient options available. Go to www.FIADA.com to get started.
www.fiada.com
PAID ADVERTISING
GET YOUR
April 2016 — Independent Dealer — 21
SALES & MARKE TING
The Psychology of Selling BY REBECCA CHERNEK, CHERNEK CONSULTING LLC
Asking questions and giving answers during the interview process can help you build value for F&I products.
I
t’s easy for finance managers to jump to conclusions when customers reject product choices. But jumping to conclusions is a dangerous proposition that can lead you down the road to lost income potential. All too often, quick assumptions can lead F&I managers to do irrational things. Like stretching terms in an attempt to meet the customer’s budget, or foregoing product offerings because you’re fairly certain they won’t be able to afford them. When you fly blind in F&I, you’re bound to find yourself far off course. Asking questions keeps you on track. Conducting a thorough interview can tell you a lot about why a customer may decide against a product. Knowing how long they typically hold onto a vehicle, including their daily driving habits, can tell you a lot about whether or not a service contract would benefit them. It can also give you plenty of insight into what they’ll find of value. Learning how to ask questions is the key to improving F&I product sales. The fact is, customers always buy when the value of the product outweighs the cost. When you are able 22 — Independent Dealer — April 2016
to talk to a customer on their level – acknowledging their concerns, asking questions, clarifying their needs – you will be in a significantly better position to guide them to a clear understanding of the potential consequences of not taking advantage of the product. Any product. This is the psychology of F&I selling. And it all starts with the interview. It may not work every single time, but it will certainly increase your chances of closing the F&I deal. It will also greatly decrease the chances of profit slipping through your fingers. The interview helps you build rapport with your customer. Open-ended questioning techniques are the best way to start. Not only do they help you gain a keen insight into precisely what the customer’s needs are, but they also help the customer understand their needs. How many years does the customer plan on keeping their vehicle? How many miles do they drive every year? Will their driving habits remain the same? Once you have the basic information, you can then begin to ask more specific questions. If the customer
rejects a service contract, your next question should be: Why? You already know their driving habits; you have an understanding of their needs and their concerns. Now you’re in a better position to be able to counter their objections with information that applies to them. Did you have a service contract with your previous vehicle? What about it did you not find valuable? If they explain to you that they feel sufficiently covered by a manufacturer’s warranty, explain to them the benefits of an additional service warranty. If they tell you that the price is too high, talk to them about the money they’ll save in the long run. If they say their previous warranty didn’t cover enough, go over their coverage options again. Sometimes, questions lead to more questions – and ultimately, to answers that can help you underscore a product’s value over its cost. Nine times out of ten, customer objections are the same. You’ve no doubt heard them all before. Why not prepare yourself in advance for what you know you’re likely to hear – all the better to zero in on a successful closing? Effectively emphasizing the benefits of a product and being able to explain why it makes sense to take advantage of can result in miraculous turnabouts. But if you don’t ask questions, you’ll never know what direction to go. Listen to what the customer tells you. More often than not, what the customer tells you will lead you right to the sale. Rebecca (Becky) Chernek is the President and Founder of Chernek Consulting, LLC. She can be reached at (404) 276-4026 or via email at becky@ chernekconsulting.com www.fiada.com
A R O F EADY
N O S A E S A Z TAX N A G A V A R T X E
GET R
Celebrate tax season profits and protect your inventory with Spireon GoldStarGPS. > Reliable, Fast, & Accurate Locates > Automated reference checks / VIN scanner > Coverage offered by Verizon, Sprint and AT&T
PAID ADVERTISING
BUY 10 GPS TRACKERS GET A FREE PAYMENT REMINDER BUZZER!*
Skip Risk. Protect with the Best. 1-855-867-2684 | spireon.com/tax-season www.fiada.com
*Limited time only. Restrictions apply.
April 2016 — Independent Dealer — 23
24 — Independent Dealer — April 2016
www.fiada.com
SUPPORT THE FIADA PAC Your PAC Contribution helps spread awareness and gain support of issues affecting independent dealers in the state’s capitol. There’s still time to get your contribution in before the session starts if you make it today.
CONTRIBUTION INFORMATION Contributor’s Name:_________________________________________________________________________ Dealership/Company:________________________________________________________________________ Street Address, City, State, Zip:____________________________________________________________________
q
Check q
q
$500
Credit Card (one time contribution) q q
Credit Card Information:
$250 q
q Visa
$100 q
q
MasterCard
Monthly Credit Card Contribution (until cancel)
$50 q
q
$25
q
American Express
_________ q
Discover
PAYMENT INFORMATION Name on Card: Card number: Exp Date:
Sec. Code:
Billing Phone:
Billing Address Authorized Signature
Make your check payable to FIADA-PAC and mail to: FIADA • 1840 Fiddler Court • Tallahassee, FL 32308 If making payment via credit card, you may fax your contribution form to 850.385.3251
www.fiada.com
April 2016 — Independent Dealer — 25
LEGAL ROUND-UP
A Look At Current Legal Issues BY THOMAS B. HUDSON AND NICOLE FRUSH MUNRO, HUDSON COOK, LLC
A monthly collection of selected legislative and regulatory highlights, and a recap of some of the many auto sale and financing lawsuits followed each month. COMPLIANCE TIP With the Federal Trade Commission’s continuing assault on dealer advertising, why not appoint an advertising officer to oversee your ad efforts (including your web site). Provide that person with an advertising compliance budget and have them trained to understand federal and state advertising rules, then have them review every new ad you run, and document the review. If the feds come calling, your compliance efforts will likely be well received. FEDERAL DEVELOPMENTS Are You Furnishing Information to Credit Bureaus? On February 3, the CFPB issued a compliance bulletin reminding furnishers of their obligation under Regulation V (Fair Credit Reporting Act) to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of information furnished to consumer reporting agencies. In the bulletin, the CFPB notes its focus on the accuracy of information in consumer reports about banking history, past NSF activity, unpaid or outstanding bounced checks, overdrafts, involuntary account closures, and fraud. The CFPB also notes that its supervisory experience suggests that some financial institutions are not compliant with their obligations with regard to furnishing information to specialty CRAs. The bulletin emphasizes that a furnisher’s obligation to have policies and procedures that satisfy Regulation V’s requirement extends to information furnished to all types of CRAs, including the furnishing of deposit account information to specialty CRAs. The bulletin states that the CFPB will continue to monitor furnishers’ compliance with the 26 — Independent Dealer — April 2016
Regulation V requirement to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of all furnished information. Another CFPB Fair Lending Enforcement Action. On February 2, the CFPB and the Department of Justice resolved discrimination claims against major auto finance creditor Toyota Motor Credit Corporation. The agencies’ coordinated settlements with TMCC closely resembled settlements reached previously with American Honda Finance Company and Fifth Third Bank. The CFPB and the DOJ alleged that TMCC’s policy of buying retail contracts from dealers having rates up to 250 basis points over TMCC’s wholesale buy rate resulted in African-American and Asian/Pacific Islander buyers paying auto financing rates higher, on average, than nonHispanic white consumers, without regard to their creditworthiness. Under the orders, TMCC will pay up to $21.9 million in restitution to an unspecified number of consumers. The consent orders require TMCC to limit dealer discretion in setting rates to no more than 1.25% or 1% over the applicable buy rate, depending on the term. TMCC also has the option of moving to non-discretionary dealer compensation. CFPB Director Richard Cordray announced that TMCC had committed not to raise its buy rates to cover “any additional nondiscretionary component of dealer compensation,” but this commitment does not appear in the CFPB’s order. Complain, Complain, Complain. On January 28, the CFPB released its monthly complaint report, which highlights trends in the complaint
data the CFPB receives through its Consumer Complaint Database. The report includes complaint data specific to certain companies, overall complaint volume and complaint volume by state, and other trends in the data. Each month, the report spotlights complaints about a particular issue and from a particular geographic location. The latest report focuses on financial services such as debt settlement, check cashing, money orders, and credit repair and highlights complaints from consumers residing in New York State. LITIGATION Arbitration Agreement Signed in Connection with Vehicle Sales Contract Deemed Void Remains Enforceable: A car buyer signed a retail buyers order, an installment sale contract, and an arbitration agreement at the time of purchase. She sued the dealer for violating the Missouri Merchandising Practices Act by failing to provide title to her new vehicle. The dealer moved to compel arbitration, and the trial court denied the motion. The trial court concluded that the sale contract was fraudulent and void because the dealer did not provide title at the time of sale or since. Because the arbitration agreement should be construed with the other contract documents, the trial court found it was void and unenforceable as well. The Supreme Court of Missouri noted that, under the governing Federal Arbitration Act, arbitration agreements are severable and considered separate from any underlying related agreements and, therefore, are enforceable unless the arbitration agreement itself is invalid under generally applicable state law principles. Relying on U.S. Supreme Court precedent, the state high court
Continued on Page 28. www.fiada.com
ON ADESA.COM Thousands of the most-popular makes/models offered daily!
Buy off-rental vehicles before they go to auction. Open to all dealers Lower buy fees Extended arbitration Central processing
© 2016 ADESA, INC.
PAID ADVERTISING
Visit ADESA.com/rentals to find a MONUMENTAL number of off-rental vehicles!
www.fiada.com
April 2016 — Independent Dealer — 27
LEGAL ROUND-UP continued from Page 24.
concluded that the unenforceability of the sale contract in this case was irrelevant to the enforceability of the arbitration agreement contained within or executed contemporaneously with the sale contract because the buyer did not directly challenge the arbitration agreement. See Ellis v. JF Enterprises, LLC, 2016 Mo. LEXIS 4 (Mo. January 12, 2016). RISC Assignee Properly Cured Usurious Contract: After taking assignment of an installment sale contract for the purchase a used car, the assignee discovered that the contract rate was greater than the 24% maximum rate allowed by the Maryland Credit Grantor Closed End Credit Provisions. The assignee cured the error within 60 days of the discovery, as permitted by CECP, by reducing the rate to 23.99%, crediting the buyer’s account for excess interest, and sending the buyer a cure notice to notify him of the error. After the buyer missed payments on the contract, the assignee attempted to collect the debt. The buyer sued the assignee for breach of contract and violations of CECP and the Maryland Consumer Debt Collection Act. The buyer alleged that the cure was untimely, the cure notice was too vague, the assignee was required to refund all interest that was collected, and the assignee made false representations in connection with its collection efforts. The trial court granted summary judgment for the assignee, and the federal appellate court affirmed with respect to the CECP and breach of contract claims, but reversed and remanded the MCDCA claim. The appellate court concluded that CECP requires a creditor to disclose only the interest rate charged, so failing to disclose a rate below the maximum is not a violation for which liability is imposed. Second, the appellate court concluded that the 60-day cure period began when the assignee actually discovered the violation, not when it took assignment of the contract. Third, the appellate court concluded that the assignee provided a proper cure notice because the notice is only 28 — Independent Dealer — April 2016
required to identify the substance of the error and not the actual violation. Next, the appellate court concluded that a creditor does not forfeit all interest when it cures because such a result would discourage creditors from self-correcting the error. The appellate court then held that a creditor could not be liable for breach of contract due to a violation of CECP after a cure because permitting liability would negate the effect of a cure. Finally, the appellate court reversed the trial court’s decision on the MCDCA claim because a reasonable jury could find that the assignee’s conduct abused or harassed the buyer. See Askew v. HRFC, LLC, 2016 U.S. App. LEXIS 384 (4th Cir. (D. Md.) January 11, 2016). Increasing Car’s Price to Cover Inflated Trade-In Allowance Not Hidden Finance Charge Where Price Applied Equally to Cash and Credit Transactions: A Pennsylvania dealership advertised a “Cash for
Clunkers” program promising potential buyers “at least $4,500” for any car a buyer offered as a trade-in. A buyer traded in his 1995 Jeep for a 2012 Ford with a cash price of $29,214. The buyer sued the dealership, claiming, among other things, that the dealership violated the Truth in Lending Act and Regulation Z. The buyer argued that the price of the Ford included a hidden finance charge represented by the amount that the dealership marked up the Ford’s sale price to make up for the fact that it gave the buyer more for his trade-in than it was worth. The federal trial court dismissed the TILA claim. Because the “Cash for Clunkers” offer applied to both cash and credit sales, the court found that there was no hidden finance charge. The fact that the buyer might have been able to buy the Ford for a lower price if the deal did not include the “clunker” trade-in was irrelevant. See Gregory v. Metro Auto Sales, Inc., 2016 U.S. Dist. LEXIS 9993 (E.D. Pa. January 27, 2016).
It’s time to change your approach to F&I compliance
WITH THIS SPECIAL OFFER... Subscribe to Spot Delivery and, at no additional charge, we will send you a copy of your choice of any of our legal compliance books, CARLAW, CARLAW II Street Legal or CARLAW III Reloaded.
To order, visit us at www.counselorlibrary.com/offer/spot or call us at 877-464-8326. Also follow us on: www.fiada.com
PAID ADVERTISING
www.fiada.com
April 2016 — Independent Dealer — 29
INDUSTRY NEWS
NIADA and Cox Automotive Looking For Community Heroes
One of Cox Automotive’s core values is fostering positive community relations. Their vision is to be a good corporate citizen and employer of choice that encourages employees to support causes they are truly passionate about. They also search for innovative and meaningful ways to collaborate with community organizations to positively impact the communities. That’s why they are looking to recognize and celebrate an independent dealership that works to find innovative and meaningful ways to collaborate with community partners to help further their missions. You are invited to nominate a deserving independent dealership for the Cox Automotive & NIADA Community Service Award. The dealership must: • Demonstrate strong contributions to the local community over the past 12 months • Be an independent dealership • Be an NIADA member Nominations must be submitted by Friday, May 6. Access the nomination form at https://coxautomotive.wufoo.com/forms/ q1akell70fje9m1/
Drive it Home FIADA is a partner in the Florida Department of Transportation’s DRIVE IT HOME … KEEP OUR PARADISE LITTERFREE campaign to elevate the dialogue about litter prevention on the state’s highways and roadsides in an exceptional way. You can help get the word out to drivers by downloading resources and information from the campaign’s website at www. cleanflroads.com.
Do You Have What it Takes? We are looking for the “best of the best.” Nominations for the 2016 Quality Dealer of the Year award may be submitted from now until June 30. The nominees will be presented to the Awards Committee at the July Board of Directors Meeting for the final selection. If you are a successful dealer that conducts business in an ethical manner and gives back to your community, or you work for a dealer who embodies these values, use the application below to submit your nomination. The Florida Quality Dealer winner will be announced at FIADA’s 2016 Convention (Oct 20-22, 2016) at the Renaissance Orlando at Sea World. The FIADA Quality Dealer award recipient will then compete with other state quality dealers for the national quality dealer award at NIADA’s Convention in 2017. For criteria and an online nominations form, go to www.FIADA.com. Click on the “About” tab and then “Quality Dealer” for the online application. 30 — Independent Dealer — April 2016
www.fiada.com
2015-2016 FIADA EXECUTIVE COMMITTEE:
JIM WINTERICK, SR. President Gulfstream Motor Credit Miami, FL (305) 253-2335
LISA COMPAGNO Senior Vice President Palm Tree Auto Sales Stuart, FL (772) 288-2099
DINO MERCURIO Chairman of the Board Independent Credit, Inc. West Palm Beach, FL (561) 686-8673
GOVINDA ROMERO Secretary Autoflex LLC Gainesville, FL (407) 468-9974
PHIL RISLEY BRANDI NOEGEL Regional Vice President Regional Vice President Noegel’s Auto Sales Cars & Credit of Jacksonville Jacksonville, FL Starke, FL (904) 616-4074 (904) 964-6461
PAID ADVERTISING
BRAD JOEL CHRISTOPHER LEEDOM STEVE MARBAIS, CMD Regional Vice President Regional Vice President Regional Vice President Splish Splash Auto Sales Marbais Enterprises, Inc. AutoMaxx Princeton, FL 33032 Ocoee, FL Sarasota, FL (305) 258-1191 (407) 877-7422 (941) 309-1111
SCOTT LANIER Treasurer Credit Cars Orlando, FL 32808 (407) 295-6211
www.fiada.com
April 2016 — Independent Dealer — 31
MANHEIM FLORIDA ALWAYS NEARBY.
Manheim Daytona Beach 1305 Indian Lake Road Daytona Beach, FL 32124 386.255.2500 Sale: Wed 3 PM Total Resource Auction every Wed 2:30 PM Manheim Fort Lauderdale 5353 S State Road 7 Davie, FL 33314 954.791.3520 Sale: Fri 9 AM Total Resource Auction Tue 9 AM Ford Open Sale every other Fri Manheim Fort Myers 2100 Rockfill Rd Fort Myers, FL 33916 239.476.9800 Sale: Wed 4 PM Total Resource Auction every other Wed 3 PM Specialty Sale last Wed monthly 2 PM Galloway Direct Off Site Sale 2nd & 4th Tues 12 PM Manheim Jacksonville 10817 New Kings Rd Jacksonville, FL 32219 904.768.9981 Sale: Thurs 1 PM Total Resource Auction every Thurs 12:40 PM Manheim Lakeland 8025 N State Road 33 Lakeland, FL 33809 863.984.1551 Sale: Wed 2 PM Specialty RV/Boat Sale 1st Wed monthly 9 AM
32 — Independent Dealer — April 2016
Manheim Orlando 11801 W Colonial Dr Ocoee, FL 34761 Sale: Tues 9 AM Highline Exotic Sale Kicks off every 4th Tues 11 AM with Mercedes & BMW Chrysler Closed Factory Sale bi-weekly on Mon 12:30 PM GM Closed Sales bi-weekly on Mon 1 PM Nissan Infiniti Closed Sale 1st Wed monthly 9 AM Manheim Palm Beach 600 Sansbury Way West Palm Beach, FL 33411 561.790.1200 Sale: Thursday 9 AM Exotic Highline Sale every 4th Wed 9:30 AM Manheim St Pete 14950 Roosevelt Blvd Clearwater, FL 33762 727.531.7717 Sale: Thurs Weekly 2:30 PM inops Regular Sale 3 PM Manheim Tampa 401 S 50th St Tampa, FL 33619 813.247.1666 Sale: Thursday 9 AM Total Resource Auction Mon 9:30 AM at Cone Road location Ford Factory Sale every other Wed 10 AM Manheim Caribbean 1050 Carretera 865 KM 4.7 Bo. Candelaria Toa Baja, PR 00949 787.261.7300 Sale: Thurs 12 PM Salvage Sale Thurs 11 AM
PAID ADVERTISING
Manheim Central Florida 9800 Bachman Rd Orlando, FL 32824 407.438.1000 Sale: Wed 9 AM Total Resource Auction Wed 8:30 AM “Manheim Imperial Nights” Sale Tues 4 PM Specialty Heavy Truck & Equipment Sale Second Thurs Monthly at 10 AM
www.fiada.com