April 2019 Magazine

Information and Insight for Florida Used Car Dealers

APRIL 2019

www.FIADA.com

GET IN ON THE FIADA

ROAD TRIP! Buckle up and ride along with FIADA as we criss-cross the state for quarterly town halls, board meetings and the Annual Convention.

PAGE 6

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April 2019 — Independent Dealer — 1

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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 Brad Joel

President

Lisa Compagno

Senior Vice President Scott Lanier, CMD

Chairman of the Board Frank Fuzy

Secretary Jenay Rhoads

Treasurer Luis Giraldo

Regional Vice President Brandi Noegel

Regional Vice President Steve Marbais, CMD

Regional Vice President

Trever Varney

Regional Vice President

Jim Winterick, Sr

Regional Vice President

FIADA STAFF Lisette Mariner, CAE

Executive Director Terry Myers

Educational Instructor Jason Berthiaume

Education and Events Manager

Jodi Eubanks

Membership Coordinator Christy Taylor

Editorial/Advertising

POSTMASTER:

Send address changes to

FIADA • 1840 Fiddler Court Tallahassee, FL 32308 (850) 385-2712 • Call/Text: (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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Contents April 2019

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 Brad Joel

6

Executive Director’s Message Lisette Mariner, CAE

8

Membership News

10

Back to Basics Terry Myers helps you prepare for the future by planning today.

12

One on One With Independent Dealer Magazine Christy Taylor has been working with Independent Dealer magazine for 20 years. She shares how it all comes together, month after month.

14

Department of Labor Proposes New Overtime Rule There are changes coming to increase the minimum salary that an employee must earn to be exempt from minimum wage.

16

2019 FIADA Annual Convention Registration is now open for the biggest event of the year. Don't forget to keep your eye out for rascals when registering.

20

5 Best Practices for Managing Your Facebook Marketing Leads With millions of people shopping the Facebook Marketplace every day, it is a no-brainer to list your inventory on this free site. To make it work however, you'll need to know what to do after you post.

24

Making Car Buying Cool Again Like it or not, people dread the process of buying a car. Cox Automotive has tips for streamlining the process by using digital components when you can and making it an efficient, exciting experience for you and the customer.

26

When an Advertising Strategy Gets Too Good...

Marketing expert Kenny Atcheson looks at the tried and true ways to get the word out that are not as likely to be under government scrutiny.

28

A Look At Current Legal Issues Attorneys Tom Hudson and Nicole Munro's monthly collection of legislative and regulatory highlights to keep you in compliance.

30 Industry News

News and headlines of interest to the Florida Used Car Industry and beyond.

April 2019 — Independent Dealer — 3

FROM THE PRESIDENT

Accelerate Your Success

BY BRAD JOEL, FIADA PRESIDENT

O

ne of the things I have enjoyed most about being the FIADA President is getting to attend meetings and trainings all over Florida while representing the Association. June 17-20, I get to attend the NIADA Annual Convention and participate in different events and workshops and I could not be more excited.

I will admit, I have not been to the national convention in a few years. Time, resources, etc. seem to have prevented me. This year though, no excuses. I'm going and I hope you will too.

more speakers that are big players on the national level that I just don't have room to write about, so look them up at www.eiseverywhere.com/website/1891/speakers/ If you register right now, you'll get to take advantage of the Early Bird Pricing. There are three different registration levels, all at price points that make this an unbelievable deal. So, accelerate your success and log on to niadaconvention.com. I'll see you in Vegas!

Brad Joel FIADA President

First of all, it's in Las Vegas. Who passes up a trip to Vegas? The convention is being hosted at The Venetian/ Palazzo. You can book a Luxury Las Vegas Suite for the exclusive NIADA rate of $169/night + $21 resort fee. Do it now while you still can. Call (702) 414-1000 or email registration@niada.com. Space is limited and this rate is only guaranteed until May 3 or until the block is sold out.

Step up. Stand Out. Kick A$$. That's the title of the keynote address that will be given by Sarah Robb O'Hagan, the founder and CEO of Extreme Living—a company designed to help individuals, teams and organizations play to their highest potential.. Described by the media as everything from “Superwoman undercover” to “The Pied Piper of potential,” Sarah Robb O’Hagan is an executive, activist and entrepreneur.

In addition to Sarah's address, the convention will be highlighted by national speakers including Dave Anderson of Learn to Lead, NIADA's CEO Steve Jordan, VP Dealer Development Chuck Bonanno, SVP of Legislative and Government Affairs Shaun Peterson, Ken Shilson of Subprime Analytics, Dealer 20 Group Moderator/Consultant and Trainers Justin Osburn, David Brotherton and Mark DuBois. And honestly, about 10 4 — Independent Dealer — April 2019

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EXECUTIVE DIREC TOR’S MESSAGE

FIADA On the Road

BY LISET TE MARINER, CAE, EXECUTIVE DIRECTOR

O

n the road again. Just can't wait to get on the road again. That is my personal anthem as I zig-zag across the state attending meetings and being an ambassador for FIADA.

getting to know him and officially welcome him back home to Florida on behalf of the FIADA. Before the end of the year, my goal is to get to all of our auction partners: ADESA Jacksonville, ADESA Ocala, ADESA Sarasota, ADESA Tampa, America's Auto Auction Jacksonville, Autonation Auto Auction Orlando, H Greg Auto Auction, Insurance Auto Auction, Manheim Fort Myers, Manheim Jacksonville, Manheim Lakeland, Manheim Palm Beach, Manheim Pensacola, Manheim Tampa, Orlando Auto Auction, Space Coast Auto Auction, Tallahassee Auto Auction, Treasure Coast Auto Auction and Your Auction of Tampa Bay.

One of the first road trips you can join us on is the tour of quarterly town halls and board meetings. Our first meeting of the year in Ft. Lauderdale was great! Our second in St. Augustine was fantastic as well. If you've missed out on these two stops, don't worry we are only half-way there. You can join us on the next leg, which will be July 19-20 in Tampa, and then the final trip will be the Annual Convention in Orlando on October 17-19. Go ahead and take your phone out and plug in both of those dates in your calendar. We will post more details about the I'll definitely be on the road a lot, but it will be well worth July Town Hall and Board Meeting as we get a little closer, it. Our Auction Partners are such a huge part of the but we already have the convention information available.

FIADA. Always have been, and I hope always will be. We Turn to page 16 for some save the date details and then use the form on page 17 to register.

Or go to FIADA.com and register online. We Our Auction Partners are such a huge part are in the process of signing all of our keynote of the FIADA. Always have been, and I hope speakers and creating the line-up of courses always will be. and should have that information available next month.

In between those meetings, I'm taking a road trip of my own to visit as many auction members as I can. My first stop is going to be to Orlando to visit Manheim and ADESA. I'll be starting with a behind the scenes look at Manheim Orlando's body shop grand opening and I'm kind of hoping I will run into our "fugitive" Ellen Westpfhal when I'm there (check out her poster on page 18). Ellen is the Convention Chairman as well as a the Assistant General Manager for Manheim Orlando.

After that, I'm headed to ADESA to mingle with FIADA members and potential members, and meet the new General Manager Todd Hoagey. Todd was the New York Quality Dealer of the Year and I am looking forward to 6 — Independent Dealer — April 2019

are thankful for their support as partners and sponsors of our Association. Did you know that Dealers Auto Auction in Gainesville sponsors 12 new FIADA members every year? Each month, the auction pays for a membership for a dealer that is not a member. What a blessing for the Association and for the new member!

Next time you are at one of these auctions I have mentioned, please stop by and let the GM know how much you appreciate their membership. We could not do what we do without the help of partners like these.

www.fiada.com

S R O O D W E N N E P O E H T H T I W P I H S R E L FOR YOUR DEA

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Protect Tomorrow. Embrace Today.™ Vehicle Protection Plans | GAP Coverage | Credit Insurance | F&I Training Limited Warranty Products | Dealer Participation Programs | Advanced F&I Technology Lifetime Engine Warranty, Limited Warranty, Vehicle Service Contracts (VSCs) and GAP are backed by Protective Property & Casualty 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. USWC Holding Company and its affiliated operating subsidiaries are wholly owned by Protective Life Insurance Company which includes the Asset Protection operating division. Actual financial performance of participation programs vary based on numerous factors. Please consult your tax and/or legal professional.

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April 2019 — Independent Dealer — 7

MEMBERSHIP NEWS

New Members

MARCH 2019

APEX AUTO GROUP INC Winter Springs, FL Mustafa Muhi Sponsor: FIADA

BACKLOTCARS Kansas City, MO Nathan Sterner Sponsor: FIADA.com

BIRDEYE Palo Alto, CA Danielle Palamara Sponsor: Jason Berthiaume

FIRST UNION LLC Navarre, FL Rhonda Waggoner Sponsor: FIADA

PTS GAP Calhoun, GA Krystal Black Sponsor: FIADA

AUTO PARADISE OCALA, INC Ocala, FL Deborah Bailey Sponsor: William Bailey

BATISTA AUTO SALES INC Bradenton, FL Enrique Batista Sponsor: FIADA.com

C BERMAN ASSOCIATES Jacksonville, FL Jeremy Little Sponsor: FIADA

JCR WESLEY CHAPEL LLC Wesley Chapel, FL Bob Remy Sponsor: Jodi Eubanks

MELISSA RUSSO Ocala, FL Sponsor: FIADA

AVIS CAR SALES Vero Beach, FL Tom Coss Sponsor: FIADA

BGA SCHOOL BUSES INC Hudson, FL Betty Archambault Sponsor: FIADA

BRIDGETTE EADES Monticello, FL Sponsor: FIADA

PALMETTO CAR CENTER LLC Doral, FL Daniel Martinez Sponsor: DMV

Rejoining Members ACI DEVELOPMENT CORPORATION Ponte Vedra, FL Ron Overs Sponsor: Frank Fuzy ADESA ORLANDO Sanford, FL Todd Hoagey Sponsor: NIADA

Renewing Members

SMITH & GOMEZ TRANSPORTATIONS INC Jacksonville, FL Har'Travious Smith Sponsor: FIADA

MARCH 2019 DICK MOYE AUTO SALES INC Pensacola, FL William Moye Sponsor: FIADA.com

MODERN MUSCLE CARS Ocala, FL Andrew Ackerman Sponsor: FIADA.com

REPAY Atlanta, GA Adam Clark Sponsor: FIADA

FORT MYERS AUTO MALL Ft. Myers, FL Brian Thompson Sponsor: FIADA

RAY'S USED CARS Dade City, FL John Yager Sponsor: Kevin Scott

WELLBORN AUTO SALES WELLBORN, FL Charles Rosenbaum Sponsor: VEMO

MARCH 2019

30+ Year Members Car Collection of Tampa J.D. Sanders, Inc. Ray's Motor Sales, Inc. 20+ Year Members Auction Insurance Agency Bargain Auto Sales of Lakeland, Inc. Bubba Hill Auto Plaza, Inc. Donny Mills Auto Sales, Inc. Ed Tillman Auto Sales GWC Warranty Corporation Roney Auto Sales Vaughn Motorgroup 10+ Year Members ADESA Ocala Allen's Friendly Auto Sales Inc. Brown's Auto Sales Butler Auto Recycling Global Wholesale Motor Company Insurance Auto Auction Jimmie's Auto Sales Southeast Fleet Auto Sales, Inc. Tallahassee Salvage, Inc. The Connection Motors, Inc. Under 10 Year Members AP Motorsales LLC ASI 3 LLC dba Auto Sales International Autonation Auto Auction Orlando 8 — Independent Dealer — April 2019

Tampa, FL Alachua, FL Lake Wales, FL Birmingham, AL Lakeland, FL Panama City, FL Largo, FL Jacksonville, FL Wilkes Barre, PA Plant City, FL Jacksonville, FL Ocala, FL Sanford, FL Leesburg, FL Pensacola, FL Fort Myers, FL Orlando , FL Madison, FL Clearwater, FL Havana, FL Hialeah, FL Anthony, FL Tampa, FL Longwood, FL

Blinker Inc. Bonita Auto Sales Inc. C & D Auto Exchange Coast to Coast Wholesale Sales & Leasing Inc Dimension Motors Inc. DOMINICKS AUTO INC Drive Pro Auto Sales E-Z Pay Cars LLC Ebenzz Motors Fazal Motors, LLC Florida Wrecker Sales Golden Eagle Management Services, LLC Good Rides, Inc. J.D. Byrider LB Auto Trading Mcphails Auto Sales Milton B Price Modern Corp Auto Sales National Truck Center Next Generation Motors Orange Auto Tag Agency Palm Tree Auto Sales Ride-Away, Inc. Sharp Deal Automobiles Corp.

Sunstate Motors and Enterprises, LLC The Garage Inc The Wholesale Club Inc dba Target Auto Brokers Yaris, LLC

Denver, CO Bonita Springs, FL Cape Coral, FL Lauderdale By The Sea, FL Lauderhill, FL Holly Hill, FL Tampa, FL Stuart, FL Jupiter, FL Orlando, FL Tampa, FL Land O Lakes, FL Port St Lucie, FL Panama City, FL Orlando, FL Sebring, FL Ocala, FL Fort Myers, FL Hialeah, FL Gainesville, FL ORLANDO, FL Stuart, FL Tampa, FL Hialeah, FL Saint Petersburg, FL Doral, FL Sarasota, FL Orlando, FL www.fiada.com

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April 2019 — Independent Dealer — 9

BACK TO BASICS

What the Heck Just Happened?

BY TERRY MYERS

Don't be left scratching your head in what could be completely avoidable scenarios. Use these tips and suggestions to plan now for what tomorrow may bring.

Y

ou won’t have a future if you don’t take time to look at the present, and you can’t understand the present if you don’t take time to look at the past.

Now is the perfect time to set aside one-day to capture information that can help you now and in 2020.

Income tax refund season has changed from just five and ten years ago. If you planned around the changes, you probably had or are still having a good income producing period. How does this year, 2019 stack up against last, 2018? How did changes in this year’s tax refund season affect the customer’s buying cycle compared to last year?

This information may prove valuable as you enter 2020.

Setting aside funds in a separate account, throughout the year, to purchase in-demand vehicles prior to the 2020 tax refund cycle, means lower

wholesale expense to produce higher profit margins during that year’s buying cycle.

Waiting until the last moment means utilizing floor planning, which increases in-demand product but lower profit margins, or worse, if you guess wrong. Having a floor plan already in place can prove an extremely valuable tool for those quick-flip opportunities at the lot or those special orders via the cyber-lot or from the auction. Most floor plan advisors can prove to be a valuable resource in helping you plan how best to use this tool throughout the year in various opportune times.

Advertising to retirement communities that ‘your dealership buys vehicles’ might be worth considering. As we get older, we don’t die. We just move into retirement communities and do those things we could not afford to do because of the time and money devoted to raising a family. ‘We’ includes me, by the way.

In these types of communities golf carts and golf cars, LSVs, replace the every day vehicle for immediate transportation needs. The new or newer vehicles we could not afford as parents become attractive again. Our well cared for vehicles now become available. Many buyers believe they could have gotten a better offer if they sold their vehicle outright, instead of using as a trade in. Also, the eventual happens and the children need to dispose of the vehicles we leave behind.

Well thought out advertising that makes the purchaser aware that selling instead of trading might just be worth investigating. It could prove to be a less costly avenue to inventory. If they contact you, it might mean they are in a buying mood. Always remember to stay within the state and federal truth in advertising guidelines.

10 — Independent Dealer — April 2019

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Do you have space you are paying for but cannot afford inventory to fill it? A couple of avenues you may want to investigate might include adding rental vehicles or consignment vehicles. I am aware of one dealer who obtained his RU, Used Recreational Vehicle license and offers these on consignment.

Ownership in an RV is like ownership in a boat. The two best days are the day you buy it and the day you sell it. The Wayne Reaves Dealer Management System has consignment built into their program. You may have more than one license at the same location if you are the owner operator of each. Talk with your compliance examiner/officer, should you decide to add either of these opportunities.

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There is a saying, “Tomorrow may never come.” True as that may be, will you be ready if it does come?

Think, Town Hall Meetings, FIADA and NIADA Conventions and vendors.

Do you wonder what the heck just happened or do you know?

“What you know makes you money.

What you don’t know costs you a fortune.”

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

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April 2019 — Independent Dealer — 11

MEMBER BENEFITS

one –on– one with

Independent Dealer FIADA Magazine Editor, Christy Taylor

C

hristy Taylor prefers the background. For the past 20 years, she has quietly worked behind the scenes to put together the Independent Dealer magazine by writing articles, researching and coordinating topics, creating the layout and graphic design for each issue and overseeing the print production. In this Q&A, Christy shares her experience both with magazine production and with the Florida Independent Automobile Dealers Association.

When did you start working with FIADA and the Indepedent Dealer magazine?

I was hired in late 1998 as the association's Publications Coordinator. That was back when there was an office on Edgewater Drive in Orlando. It was my first "real" job after graduating college and I was very excited and thankful for the opportunity. As Publications Coordinator I was responsible for developing content and design for the magazine, creating membership communication and recruitment materials, convention promotions and any other written or graphic projects that were needed.

What was your experience?

I have a degree in Mass Communications:Journalism and Public Relations and experience as editor of my college newspaper when I applied for the position at FIADA. I also wrote a few freelance articles for Independent Dealer before I was hired. Other than internship projects and some other freelance articles, my portfolio was pretty small. I knew how to work in Pagemaker, the design program FIADA was using at the time, and I grew up in the printing industry (through my father's printing company) so I understood print production.

Peggy Lara, the Executive Director at the time, took a chance on me and I'm glad she did!

What do you like best about working with Independent Dealer magazine?

Talking to and learning from members. Before I was working full-time at FIADA, I wrote a few "dealer feature" 12 — Independent Dealer — April 2019

articles for the magazine. Over the years I have interviewed many dealers and tried to tell their stories as best I could. I have been continually humbled and amazed at how kind and interesting our members are. Each time I do an interview, I feel like I make a new friend. Most of the interviews I do are by phone, so I absolutely love coming to convention and other meetings and getting to meet everyone face-to-face.

I have been working with FIADA for about 20 years (wow)! In a lot of ways I feel like I have "grown up" with the Association as in that time I got married, started a family and enjoyed many life experiences. I love catching up with those members I met in the beginning like Frank and Gina Fuzy, Steve Marbais, George Hickey, Dino Mercurio, Kevin O'Connor and Don Scott. They still ask about what's going on in my life and I love to hear what's happening with them.

It's more than work, it's really like a little family.

I also adore the FIADA staff. Lisette is a remarkeable person. She is literally a wonder woman. She is so knowledgeable about everything and puts her all into everything. I try very hard to keep Independent Dealer running without having to pester her, but she is crucial to helping decide the focus of each issue and making sure we cover important information dealers need to know. Jason is also an integral part of Independent Dealer. He coordinates the advertising each month. As an editor, I really appreciate that he does this because it helps to keep the advertising and editorial separate. Everybody who works at FIADA is just so helpful and ready to do the best they can for members.

Continued on page 14. www.fiada.com

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April 2019 — Independent Dealer — 13

One on One continued from Page 12.

Do you only work on the magazine?

I have been happy to help with other graphics projects as I am needed, like event and member promotions. I have the privilege of also working on materials for the Annual Convention.

I'm a creative person, so it's always a lot of fun for me to take the theme the Conventon Committee decides on and develop it into its own look and feel. Lisette and the committee always give me a lot of creative freedom in developing the graphics and promotions and I have to say it's one of the best parts about the work I do; creating something from the ground up is really satisfying professionally.

What is the most challenging part about putting Independent Dealer together?

The deadlines! I think the days and months are getting shorter for sure!

I also wish we could hear from the readers more about articles and features they would like to see. We

are always looking for good ideas for articles, or for dealers who want to share their story. Submit any feedback and ideas to Lisette at lmariner@fiada. com.

Do you work in the FIADA office?

I do not work in the Tallhassee office. Years ago, when FIADA was considering making the move to Tallahassee I knew my place was still in Central Florida and I am very thankful that the Association gave me some freedom to stay here in my hometown, but still be able to work on the magazine. Today's technology really makes it easy to be able to communicate with the office staff and stay real-time in what we are trying to accomplish.

Where does Independent Dealer get its content?

We create a lot of it. The FIADA President always has a column that is of his or her choosing and in their

own words as a way to stay in touch with the members. Lisette has an article each month of course that updates everyone on the Association's operations. Terry's monthly "Back to Basics" article always provides insightful technical information, and of course the "Keys to Insurance" every quarter comes from our Insurance Preferred Providers. In addition to that, I write a lot of the general content and all of the dealer features. We also have a variety of sources that we seek out information from that we think is useful for dealer operations, especially on topics like online marketing, sales and best practices. We always encourage any of our associate members to submit articles that are educational to our readers.

We would really like to hear from members on what types of articles they would like to read. I would encourage anyone reading this to drop Lisette an email and tell us what you would like to see us include.

Department of Labor Proposes New Overtime Rule The Department of Labor has released a new proposed rule to increase the minimum salary that an employee must earn to be exempt from minimum wage and overtime under a white collar exemption.

The rule

The proposed rule requires that salaried exempt executive, professional, administrative, and computer employees must be paid at least $679 per week on a salary basis, an increase from the current minimum of $455 per week. The rule allows for nondiscretionary bonuses and incentive payments to account for up to 10% of the minimum, so long as they are paid out on at least an annual basis; currently commissions and bonuses cannot be counted toward the minimum.

The DOL also proposes that highly compensated employees must be paid 14 — Independent Dealer — April 2019

at least $147,414 per year to qualify as exempt. Of that amount, at least $679 per week must be paid on a salary or fee basis. The anticipated effective date of this rule is January 2020.

The Department of Labor intends to update these minimums every four years based on increases to the Consumer Price Index. These increases will not be automatic, but will likely be done through notice and comment rulemaking, just as they are doing with this proposed rule.

Duties test

There are no proposed changes to the duties tests for the various white collar exemptions. Employers should be aware that paying someone a minimum salary does not necessarily mean they are properly classified as exempt. Each of the exemption types mentioned above has a corresponding duties test. If the duties test is not met

by the employee, then they are nonexempt and entitled to minimum wage and overtime, regardless of the method or amount of pay.

State law

California and New York (and soon Washington) already have laws in place that make the minimum salary for exempt white collar employees higher than these proposed thresholds. As employers must follow the law that is more beneficial to employees, the new proposed federal minimums would not affect employers in these states.

Resources

Numerous resources to help employers navigate this change are available in the NIADA HR Support Center (www. niadahr.com). Search FLSA Changes to find a Decision-Making Guide, Implementation Guide, information about the duties tests, and more. www.fiada.com

DON’T IGNORE YOUR TAXES

UNTIL IT’S TOO LATE. OUR SERVICES • Florida sales tax audits, appeals and litigation • Criminal sales tax defense • Corporate sales and transactions support

• IRS services including audit, appeals, collection, tax court litigation • Tobacco tax, wholesale alcohol tax, and other

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annual - -

ConventioN ROSEN PLAZA HOTEL | ORLANDO, FL

OCTOBER 17-19, 2019

Registration is now open for the FIADA Annual Convention and Trade Show! Head on over to www.FIADA.com and register now.

WANT TO GO AHEAD AND BOOK YOUR HOTEL?

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You can reserve your room at the Rosen Plaza Hotel now! Call 1-800-627-8258 and request the GROUP rate for Florida Independent Automobile Dealers Association, FIADA Annual Convention and Expo.

Get details and updates at FIADA.com/convention

16 — Independent Dealer — April 2019

www.fiada.com

2019 FIADAOCTOBER ANNUAL17-19, CONVENTION REGISTRATION FORM 2019 | ROSEN PLAZA HOTEL COMPANY INFORMATION Company:____________________________________________________________________________________________________________ Address:_________________________________________________________ City, State, Zip:________________________________________ Phone:___________________________________________________________ Mobile:______________________________________________ E-mail:__________________________________________________________ Website:_____________________________________________

REGISTRATION INFORMATION FULL ACCESS PASS (Includes all events and meals)

EARLY BIRD (2/1 - 8/31)

Badge Name:_____________________________________________________________

MEMBERS

[

] $249

REGULAR (9/1 - 10/9)

[

] $299

ON-SITE (10/10 - 10/19)

[

] $349

NON-MEMBERS [ ] $299 [ ] $349 [ ] $399 ADDITIONAL FULL ACCESS PASS (Available with purchase of Full Access Pass) Badge Name:_____________________________________________________________

[

] $195

[

] $195

[

] $195

Badge Name:_____________________________________________________________

[

] $195

[

] $195

[

] $195

[

] $100

[

] $100

[

] $100

[

] $175

[

] $200

[

] $225

SPOUSE FULL ACCESS PASS (Available with purchase of Full Access Pass) Badge Name:_____________________________________________________________ Tickets to the Annual Banquet are included with all Full Access Passes. For our planning purposes, will you and your guests be attending the Annual Banquet on Saturday evening?

Yes

No

ONE-DAY PASS* (Please choose which day) *You must attend both days of the convention in order to obtain continuing education credit.

[

] Friday

[

] Saturday

MEMBERS

NON-MEMBERS [ ] $200 [ ] $225 [ ] $250 FULL ACCESS AND SPOUSE FULL ACCESS PASSES includes all meal functions, seminars and exhibit hall access and is eligible for continuing education credit. Additional Full Access passes and Spouse pass are only available with a Full Access registration. Valid FIADA membership required for FIADA member registration rates. CHILD REGISTRATIONS AVAILABLE Contact FIADA at (800) 237-0448 for details and to register.

TOTAL:

$

PAYMENT INFORMATION [

] I have enclosed a check made payable to FIADA

[

] I will be using a credit card

Name (as it appears on card):_______________________________________ Company:______________________________________________ Credit Card Billing Address:_______________________________________________________________________________________________ Credit Card Number:_________________________________________________________________

Exp Date:__________________________

Authorized Signature:_________________________________________________________________ CC Security Code:____________________ CANCELLATION POLICY: If cancellations are received in writing before 5pm on Monday, September 2, 2019, we will refund your registration fee. If cancellation is received between 9/3/19 and 9/30/19, we will refund your registration fee less a $25 processing fee. Fees cannot be refunded for registrations canceled after 9/30/19 or for no-shows. PHOTO/VIDEO/TEXT RELEASE: By registering for the 2019 FIADA Annual Convention, I hereby grant permission to use any and all photographic imagery and video footage taken of me at this event and activities pertaining to this event, without payment or any other consideration. I understand that such materials may be published electronically or in print, or used in presentations or exhibitions. By providing your mobile number, you agree to receive convention-related texts from FIADA.

HOTEL INFORMATION Rosen Plaza Hotel, 9700 International Dr, Orlando, FL 32819. Hotel stay is separate from convention registration.

Reservations must be made by SEPTEMBER 16, 2019 to qualify for group discount of $159 per night (plus tax) For reservations call (800) 627-8258.

Return this completed form: Mail: FIADA, 1840 Fiddler Court, Tallahassee, FL 32308 Fax: (850) 385-3251 Register: Online: www.FIADA.com Call/Text: (800) 237-0448

www.fiada.com

April 2019 — Independent Dealer — 17

Ellen “Wild Woman” Westpfahl Manheim Orlando’s Assistant General Manager, Ellen “Wild Woman” Westpfahl is on the loose and headed for the FIADA Annual Convention in Orlando, October 17-19.

“It is a great time to reconnect with dealers and vendors that are involved in the Automotive Industry. It is also a great time to attend amazing break out sessions where you always learn something new.”

Last known whereabouts:

Ellen can usually be found at the Manheim booth or at the Florida Sheriffs Youth Ranch booth trying to win some prizes. If spotted, proceed with extreme caution.

18 — Independent Dealer — April 2019

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www.fiada.com April 2019 — Independent Dealer — 19

S O C I A L M E D I A S T R AT E G Y

5 Best Practices For Managing Your Facebook Marketplace Leads

BY DAVE BRAZIER

Facebook Marketplace is one of the hottest places to list your inventory, but to be successful with it you will need to do more than just posting your inventory.

W

hen was the last time you checked your Facebook Inbox? You might have direct messages from hot leads, right now – especially if you list your inventory on Facebook Marketplace. This article will look at where these messages go and a few important best practices, including whether or not to use a chatbot, and who should be managing these leads.

If your auto dealership is posting its vehicles on Facebook Marketplace, congratulations! You’re one step closer to driving more sales opportunities from Facebook for your dealership, and you’re likely already seeing leads pile into Facebook Messenger.

But now what? Don’t worry. We’ve gathered a few best practices from some of the best experts in the industry on how to respond to your dealership’s Facebook Marketplace leads.

have an understanding of best practices for replying to Facebook Facebook Marketplace for Auto leads.

Respond to leads INSTANTLY, even if only to let the prospect know you’re working on gathering all the answers they’ve requested on the vehicle they’re interested in.

Use Facebook’s built-in tools to help you stay organized, especially if you have multiple team members fielding responses.

Be sure to “star” your important conversations, or revert the “Read/Unread” status if a message needs more attention, and most importantly, mark finished conversations as “done” once you’ve handled the lead in full.

To access these messages, you will need to have “Moderator” status or higher for your dealership’s Facebook Business Page. All of your dealership’s Marketplace direct messages will populate on the Marketplace tab of your Facebook Business Page’s “Inbox.” “Inbox” is a newer update from Facebook that aggregates all of your Messenger inquiries, Facebook comments, and Instagram interactions in one, easy-to-use area.

Respond Quickly and Stay Organized!

“Time kills deals” is a phrase we all know on the lot, and it is just as true when dealing with leads on your digital lot.

You don’t want to miss these leads!!!

First, make sure you have dedicated a team member to log in to Facebook daily and keep an eye on your notifications. Then, agree with your team on a default response to provide an instant reply, such as “Happy to help!” or “Hi there!” Regardless, your team should 20 — Independent Dealer — April 2019

Facebook’s new Inbox feature combines all messages from your Facebook, Instagram, and Messenger accounts.

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Facebook Marketplace Best Practices continued from Page 20.

Be Memorable & Be Human

Generic, automated responses are easy to spot—and easy to forget!

At this phase, building rapport with your prospect is the most valuable thing you can do. Facebook Marketplace leads are interested in your inventory, but they’re hardly loyal to you or your store.

It’s your job to reach that person first to engage their interests, answer their questions, build a relationship, and set an appointment! Each message links directly to the Facebook Profile of the potential customer that is interested in one of your vehicles.

can also look through their profile and wish them well on any recent milestones or thank them for being a fan for so many years.

This will help you bring relevant, helpful information to the table. A few tips for responding to each lead:

Failing to offer another option to leads is guaranteed to drive them to a different dealership for what they were in search of.

•

Have an After-Hours Plan!

• • • • •

Connect with them based on something on their profile Offer a salesperson’s name, photo, and direct phone number Provide additional photos of the vehicle(s) they are interested in Be clear about what you want them to do next!

Let them know about any current promotions and offers Remember, perception is everything, so show your customers that your response is FOR THEM, BY YOU…not just a canned response that every lead gets.

Already Sold? Try This!

The first question you’ll likely see from Facebook Marketplace leads is: “Is it still available?”

When responding, it’s important to be a salesperson – not simply an order taker. If the vehicle is sold, guide the customer to alternatives that they may be interested in.

Here are some tips to keep the conversation going:

Use Inbox’s “About” sidebar to gather more information about your prospect.

Just like reading an UP’s bumper sticker as they drive onto the lot, you can use this to gather more info before and after you respond. Maybe they are from the same town or went to the same college as you. Or maybe you have a mutual friend. You 22 — Independent Dealer — April 2019

interest, you will be more likely to bring them into your dealership for an appointment and test drive.

Ask why. Ask why they’re in the market for the vehicle they’re inquiring about. This will take the conversation beyond price and help you get a better understanding of what else you can show them.

Give multiple options. Once you know the vehicle type they want, pull up ALL vehicle listings that are similar to it so that you increase their options. If you have more than one vehicle available that will pique their

Make sure team members owning this task are passionate, timely, and reliable. Leads will come in after hours! In fact, up to 40% of leads are generated after business hours for dealerships.

Make sure your dealership has a process or technology to personalize responses to customer inquiries after hours and answer questions for the prospect.

Stay Engaged & Nurture Leads Keep in mind a large percentage of people start “looking” at vehicles weeks or months before they intend to buy. Don’t be surprised or “write them off ” if they don’t set an appointment with you (or anyone) right away!

That’s why it’s important to follow up! If you can, follow up with leads for up to 120 days and make it simple for your customers to re-engage with your inventory, staff, and dealership.

Instead of manually following up, try running Facebook ads to these users!

You can create a Custom Audience and advertise to everyone who has sent a Message to your Page within a certain amount of days.

Dave Brazier bridges the gaps between technical discussion, actionable items, and effective story-telling at Dealers United. Find out more about Facebook marketing strategies at www.

DealersUnited.com. www.fiada.com

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D I G I TA L R E TA I L I N G

Making Car Buying Cool Again

BY COX AUTOMOTIVE LEARNING CENTER

Gaining ready-to-buy shoppers today starts with better customer access to consistent payment information, incentives, trade-in values and information, chat capabilities and pricing on protection options.

I

f you’re a dealer who hasn’t embraced digital retailing – you’ve already fallen behind the pace of commerce.

You could blame Amazon for its convenient, right time/right product/right place approach to online commerce, and you would not be far off: The “Amazon Effect” has disrupted many retailers. Yet while people think of the Amazon Effect in terms of shuttered brick and mortar stores, the real impact has been how Amazon has changed consumer buying habits and preferences.

According to How to Win in The Amazon Era, a survey conducted by global marketing firm Epsilon,1 the top reasons for the Amazon Effect includes price (64%), ease of use (52%) and convenience (47%).

This is the reality of automotive retail, and it’s been headed this way for more than a decade. Consumers are doing a lot of research ahead of time, and they aren’t very interested in lengthy transactions. Once shoppers decide on the vehicle, they expect the transaction to be quick and efficient.

Two key buyer traits in the driver's seat

Budget-conscious shoppers are now empowered and impatient, which may well have resulted in two key buyer traits: an increased inclination toward payment buying and a strong aversion to wasted time. Fifty-three percent of car buyers look for monthly payment information while researching a vehicle. They’re also prioritizing the overall experience – and time spent doing unpleasant tasks at the dealership is a major factor. An average of three hours is spent at the dealership during a typical purchase, and half of that is spent negotiating or doing paperwork. The result is a subpar 46% satisfaction rate with how long the process takes, according to Cox Automotive 2018 Car Buyer Journey.

Perhaps the reality is that it’s all about making the complexity of a car purchase as simple (and efficient) as possible – which means a digital experience with tighter integration between digital and physical showrooms and a priority on speeding up the paperwork part of 24 — Independent Dealer — April 2019

the process. Doing that leaves more time for the joyful parts the car-buying experience – like test drives – and helps avoid getting trapped in a race to the bottom of the automotive retail sea, where dealers forsake price just to wrap up the deal while the customer grows grumpier with every minute spent waiting to “be done.”

That’s not a place you want to be.

Instead, the solution is in figuring out how to keep your margin profitable while maintaining a high CSI and a favorable buying experience that drives future service revenue. That’s where digital retailing can help. As an automotive retail technology solution, it provides a path to a better shopper experience targeted to customer priorities. The 2018 Cox Automotive Future of Digital Retail Study says 9 out of 10 buyers are more likely to buy from a dealership that offers at least one component of digital retailing. Even better, digital retailing is proven to generate higher sales profits. On average, Cox Automotive digital retailing leads produce 51% higher gross profits compared to other internet lead sources. Additionally, digital retailing results in 31% higher average back-end gross profits and 113% higher average front-end gross profits.

Digital Retailing is now an expected part of the process

Car buyers want to use digital retailing because it connects the work they’ve done online to the in-store sales process so they don’t have to re-hash it with you in the showroom. At the same time, digital retailing allows YOU to gain operational efficiencies by bridging the gap and offering that seamless, consistent experience buyers are looking for. Digital retailing also helps you personalize the shopping experience and give car buyers a feeling of transparency, which can help build trust with your dealership.

Digital retailing can also help get more satisfied readyto-buy “payment” shoppers before they even step foot www.fiada.com

into the dealership. It creates a world where buyers can work out what they want at their convenience: a real monthly payment, with no added payment surprises or onthe-spot pressure “in the box” for F&I. And for those buyers who are deeply unsatisfied with how long the purchase process takes in the dealership, it creates an easy and fast purchase experience that leverages digital tech with in-store sales expertise. It’s the speed that improves customer satisfaction, lowers the cost of the transaction, and lays the groundwork for increased gross profit. At the same time, it differentiates the experience for car buyers who are desperately ready for the automotive world to catch up with the Amazons of the world. It’s in these ways that digital retailing helps dealers make car buying cool again.

Start by prioritizing these four steps: 1. Offer more online steps to the deal. Gaining ready-to-buy shoppers today starts with better customer access to consistent payment information, incentives, trade-in values and information, chat capabilities and pricing on protection options. That helps to clearly define the parameters of the deal and will ensure consistent communication. And it’s important to car buyers: 71% want to get information about the deal online.

2. Combine your website and dealership showroom process into a single streamlined experience. The last thing customers want to do is start the process over again when they arrive at your store: 43% want to secure financing online, and 51% want to structure the deal online.

That’s right: half of car buyers want to select their products, make a deposit and finalize the price before they ever step foot in your dealership.

3. Use digital retailing to create a “total retail” experience.

Digital retailing creates a comprehensive process truly in sync with how consumers are actually researching and buying: digital expedience and dealership expertise working together. Consider that 57% want to perform purchase activities digitally while at the dealership.

But that’s not all. A “total retail” experience extends far beyond the sale. In fact, half of the car buyers surveyed said they would be more likely to service their vehicle at a dealership that offered “online scheduling for service” and “online cost estimates.”

4. Focus on your staff. Introducing new technology and processes at your store is hard. You can’t just “turn it on” and reap the benefits. It takes patience and commitment. Getting your team up to speed on new customer handling and sales processes is the crux of successful digital retailing, and it could arguably be the hardest part of implementing digital retailing at your dealership.

In fact, this part of the implementation process is so crucial to your success that you may want to start slowly. Certainly, there are dealers who go with an “all-in” approach, but one best practice is to designate a couple digital retailing “champions” to handle all digital retailing leads. These team members would serve as concierges throughout the whole online and in-store process and allow your dealership to hone this new way of doing business while developing some best practices of your own. This is a great way to build a foundation for your digital retailing evolution, and it becomes a model for training when you are ready to roll it out dealership-wide.

Times may have changed, but quality remains

The way we shop, buy and service vehicles is different today, thanks to the power of technology and information. But what stays constant and steady is the core, tangible value of an in-person experience. In fact, 8 out of 10 consumers would never purchase a car without a test drive, and 7 out of 10 would never purchase a car without physically seeing it first, even if a condition report is offered online. Indeed, even the Epsilon study found the same preference within their Amazon study: 69% of respondents said that “touching a product is an important part of shopping.”

It’s simple: to touch something is to feel assured that it exists and is of high quality. Customers want the personal assurance of a quality experience. But they also want to leverage technology to make the process easier and more convenient.

It’s almost as if car shoppers understand that buying a car takes time – which is why they want to bring digital and mobile tools into the process, to alleviate the long, slow grind – and help create a nimble experience better aligned to their lifestyles.

After all, when 89% of consumers still want to sign final paperwork at the dealership but 83% want to take at least one step online during their purchase, the message seems clear: the way to make car buying cool again is to integrate the power of digital retailing with the consistent service of a knowledgeable dealership staff.

The Cox Automotive Learning Center is an online resource for auto dealers.

Access its library of articles, videos and ebooks at www.coxautoinc.com/ learning-center

D E A L E R O P E R AT I O N S

When an Advertising Strategy Gets Too Good...

BY KENNY ATCHESON

Don't let tax season make or break you. Create a steady sales strategy by enhancing your repeat and referral business.

A

new court case may have major implications for an advertising strategy that is effective and inexpensive and fast. However, it seems when an advertising strategy is too good it gets outlawed, banned, regulated, or crushed. Let me explain by giving you some history.

Knocking on doors was pretty common for some industries. Gated communities and “no solicitation” signs have stifled that a bit.

Broadcast fax was fairly inexpensive and it used to be effective. Who could ignore the sound of the fax machine sitting next to them while it spit out a piece of paper? But government officials stepped in and squashed it.

Cold-calling—although a pain— was effective and had no cost other than labor. If it was being done by a

commission-only salesperson there was no upfront cost, only commissions paid after the sale. It was great. Then government muckety-mucks came up with the Do Not Call list.

Popups on websites were the rage when they were first devised. They couldn’t be ignored. Well, popup blockers took care of that. Google Adwords even made it against their terms and conditions to send an ad which contained a popup to a page.

Facebook Ads offered great targeting.

Facebook has more information on Americans than the federal government.

I did some pro bono work for a new Christian Preschool in my area. I was excited to use targeting based on “geographical location,” “parents with kids between the ages of 1 and 5,” and “parents who identify as Christian.” There was only one problem. Facebook removed the religious affiliation

targeting. They’ve since remove lots of other targeting after Zuck’s visit to Congress.

Text marketing offers 90% open rates—better than anything else.

Businesses learned of these high open rates and quick response rates from marketing companies such as Dealer Profit Pros, and then a lot of dealers started doing it. Consumers get annoyed and write letters to Congress. As a result, Congress and/ or FCC heads make it tougher to succeed by texting customers.

And now a new court case When ringless voicemail first came out, I jumped for joy. It was fast, inexpensive, and a whole lot less annoying than robo-calls. Even if robo-calls were 100% legal and compliant, I don’t like using them because nearly everyone is annoyed by them. (*Pro tip—don’t annoy potential customers).

A ringless voicemail is as it sounds.

Ringless voicemail providers assured, “You can get tens of thousands of voicemails to potential car buyers without their phone ringing, within minutes for very little money—and they won’t know it’s automated.”

Personally, I have found that most consumers are not fumed by receiving voice messages, but they despise robo-calls.

Unfortunately for advertisers, the

26 — Independent Dealer — April 2019

www.fiada.com

Southern District of Florida has concluded that ringless voicemails are “calls” under the TCPA and therefore subject to its regulations. In the Schaevitz v. Braman Hyundai, Inc. case, the dealership used a ringless voicemail provider to transmit unsolicited pre-recorded voicemail messages to individual’s cell phones.

None of this article is meant to be legal advice. I am not an attorney. In my personal opinion, this Florida case could lead to nationwide recognition of the outcomes of the case, meaning that the Do Not Call list will apply.

What does it mean?

This article is not meant to discourage or encourage any of the strategies mentioned thus far. Many still work well, just not as well as they used to because of regulations. Or they require further analysis and rules to be adhered to.

There are definitely two things every dealer should do: 1. Use a multi-media approach. The more media strategies you use, the less likely a new rule, regulation, or law will

affect your business. In addition, different people respond to different types of media.

2. Use strategies that will never be outlawed or overly regulated. Direct mail and referrals are two of those strategies. The United States Postal Service is not going anywhere. It legally has to exist. There are a number of advantages to using direct mail in our 2019 Direct Mail Quick Tips Guide. Email jean@DealerProfitPros.com if you would like it, free.

Referrals won’t be outlawed either. There may be limitations on paying for referrals (check with your attorney) but word of mouth will always be effective—if you treat people awesome.

Kenny Atcheson is the founder and president of Dealer Profit Pros and author of Marketing Battleground: How to Deploy Under-the-Radar Strategies to Explode Your Profits. Kenny teaches workshops and speaks at conventions and 20 Groups. His company offers several marketing and advertising programs, customer service and sales training. His website can be found at www.DealerProfitPros.com

ENJOY A NEW MOBILE-FRIENDLY FIADA.COM FIADA.com has gotten a new, mobile-friendly makeover! All the same, great resources are there just now in a responsive format making it easy to access no matter if you are on your phone, tablet or desktop.

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April 2019 — Independent Dealer — 27

L E G A L & L E G I S L AT I V E

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.

FEDERAL DEVELOPMENTS CFPB Reports to Congress on FDCPA Administration. On March 20, the CFPB released its annual report to Congress on the administration of the Fair Debt Collection Practices Act. The report details the Bureau’s and the FTC’s enforcement activities, education activities, and policy initiatives conducted in 2018 related to unlawful debt collection. The Bureau and the FTC share enforcement responsibilities under the FDCPA, and, in February 2019, the agencies reauthorized their memorandum of understanding that provides for coordination of enforcement, sharing of supervisory information and consumer complaints, and collaboration on consumer education. The report states that the Bureau intends to issue a Notice of Proposed Rulemaking on debt collection in Spring 2019.

CFPB Provides Overview of Servicemember Complaints. On March 19, the CFPB released its latest “Complaint Snapshot,” which provides a national overview of complaints submitted by servicemembers, veterans, and their families in 2018, as well as servicemember complaint information by state.

New Supervisory Highlights Edition Focuses on Auto “Loan” Servicers.

On March 12, the CFPB released its 18th edition of “Supervisory Highlights,” which covers the Bureau’s 28 — Independent Dealer — April 2019

supervision activities generally completed between June 2018 and November 2018. The report includes supervisory observations in the area of auto loan servicing (despite the term “loan,” these observations presumably cover servicing of both loans and retail installment contracts). Examinations of auto loan servicers uncovered instances of servicers incorrectly calculating rebates for extended warranty cancellations and then attempting to collect deficiency balances based on those incorrect calculations.

Examiners also observed instances of auto loan servicers failing to request rebates for eligible ancillary products after a repossession or a total loss and then sending consumers deficiency balance notices containing incorrect rebate information.

FTC Warns Businesses of Their Obligations to Comply with Subpoenas and CIDs. On March 6, the FTC released a post in its Business Blog discussing a business’s obligation to comply with subpoenas and civil investigative demands issued by the FTC when it believes a law may have been violated. The FTC reminds businesses that “these requests are legally enforceable demands, and recipients of subpoenas or CIDs need to take their obligation to comply seriously. We expect all companies and individuals who receive compulsory process to respond completely and in a timely manner, or to disclose quickly and candidly any obstacles to full compliance.”

Comments Requested on Safeguards Rule and Privacy Rule Proposed Amendments. On March 5, the FTC announced that it is seeking comment on proposed amendments to the Safeguards Rule and the Privacy Rule under the Gramm-LeachBliley Act. The proposed changes would bring the rules in line with changes implemented by Congress through the Dodd-Frank Act in 2010 and the FAST Act in 2015, which modified the annual privacy notice requirement under the GLBA. The Safeguards Rule requires a financial institution to develop, implement, and maintain a comprehensive information security program. The Privacy Rule requires a financial institution to inform customers about its information-sharing practices and allow customers to opt out of having their information shared with certain third parties.

The FTC’s new Safeguards Rule review follows from an earlier public comment period in 2016.

The FTC is proposing to add more detailed requirements for what must be included in the information security program mandated by the Rule. The proposal generally would require financial institutions to: (1) encrypt all customer data; (2) implement access controls to prevent unauthorized users from accessing customer information; and (3) use multifactor authentication to access customer data. In addition, the proposal would require companies to submit periodic reports to their www.fiada.com

boards of directors and clarify the Safeguards Rule’s scope in the regulation itself.

over 180,000 suspicious activities targeting older adults, involving more than $6 billion.

The Dodd-Frank Act transferred most of the FTC’s rulemaking authority for the Privacy Rule to the CFPB, leaving the FTC with rulemaking authority only over certain motor vehicle dealers. To address these statutory changes, the FTC is proposing to remove from its Privacy Rule examples that do not apply to those dealers. In addition, the revised Rule would clarify when the dealers must provide annual privacy notices to reflect provisions included in the FAST Act.

CASE OF THE MONTH Finance companies, banks and buy-here, pay-here dealers regularly repossess cars that serve as collateral for their financing transactions.

Occasionally, even dealers find themselves in a situation in which they need to repossess a vehicle.

Those repossessions can get sticky.

Here’s how: A car owner sued her lienholder for illegally repossessing her car. The lienholder hired a repossession company to repossess the car. When the repo agent went to repossess the car, the car owner called her attorney, who allegedly told the agent that he should not take the car and that if he repossessed

For both the Privacy Rule and the Safeguards Rule, the FTC is proposing to expand the definition of “financial institution” to specifically include “finders,” bringing the FTC’s rules in line with other agencies’ interpretations of the GLBA. “Finders” are those who charge a fee to connect buyers and sellers of a product or service. Comments must be received within 60 days after the proposed amendments are published in the Federal Register.

the car, she would file a lawsuit. The attorney did in fact file a lawsuit against the lienholder and notified the state attorney general that the lienholder committed unfair trade practices.

The agent called the lienholder’s owner to tell him about the conversation with the attorney and was instructed to tow the car. The car owner declined to sign a form indicating that she was voluntarily surrendering the car.

The trial court concluded that the car was illegally repossessed because the lienholder breached the peace during the repossession. The Louisiana repossession statute provides that

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April 2019 — Independent Dealer — 29

INDUSTRY NEWS

News and headlines of interest to the Florida Used Car Industry and beyond

Vehicles With Open Recalls In U.S. Down 8%, Now 52 Million Carfax Attributes Findings to Greater Consumer Awareness, Use of Vehicle Monitoring Services The open recall problem in the U.S. is improving, but millions of drivers and car buyers are still at risk. Annual research findings from Carfax show there's more than 52 million recalled vehicles on the road that haven't been fixed. That means roughly one out of every five registered vehicles has open recalls. The states where this problem is most glaring are all in the South: Mississippi (24.7%), Texas (24.6%), Louisiana (23.7%), Alabama (22.2%), New Mexico (22.1%) and Arkansas (21.6%).

Additional findings reveal that California (6.3 million), Texas (5.5 million), Florida (3.2 million), Pennsylvania (2.2 million) and New York (2.1 million) have the most vehicles with open recalls.

The good news for consumers: open recalls have declined over the last two years, down from 63 million in 2017 and 57 million in 2018, according to Carfax. Two particular efforts have helped – increased use of free recall monitoring services like myCarfax and checks for open recalls during state vehicle inspections.

"Our research indicates that using Carfax to send and receive vehicle-specific recall information is one of the most effective ways of getting more recalls fixed," said Dick Raines, president of Carfax. "We are encouraged by this year's results, but there's still a long way to go. Open recalls are a critical safety issue that can impact everyone on the road. It's imperative that car buyers, sellers and especially owners stay informed about recalls and take action on them to maintain the safety of their vehicles and our roads."

Thirteen million people now are registered with myCarfax, a free service that continuously monitors multiple vehicles for open recalls after entering the license plate or VIN. The free myCarfax app sends recall alerts to the user through their mobile device.

For the second year in a row, light trucks and minivans are the vehicles most likely to have unfixed recalls.

CarMax will offer more customers the ability to buy online CarMax is working on a plan to roll it out an omnichannel sales model to the majority of its customers by February 2020.

Used-car retailer CarMax Inc. has been happy with an omnichannel sales model it rolled out in Atlanta in December. Now it’s moving to bring ecommerce car vehicle purchasing to the majority of its customers, starting with new rollouts in Florida.

In a March 29 conference call with analysts to discuss results for the fourth quarter and fiscal year ended Feb. 28, 2019, CarMax CEO Bill Nash said the company plans to create three “customer experience centers” (CECs).

The centers will help customers over the phone or online with shopping, comparing financing options and other questions. Each center will have a staff of about 300 and will serve multiple states.

Late last year, CarMax introduced omnichannel sales to the Atlanta market. The new online capabilities allow customers to buy a car entirely from home, in a store or via a combination of online and in-store interaction.

Services include delivery and an express pickup option, which allows customers to complete most of the carbuying process online and finish a purchase in a store in 30 — Independent Dealer — April 2019

as little as 30 minutes.

After browsing available vehicles online, shoppers can hold a car for seven days or request a transfer to a more convenient location. Customers who purchase online can get the car delivered to their homes or workplaces.

CarMax also will bring vehicles to customers who want to test-drive them before deciding whether to buy. As with all CarMax purchases, customers can return cars for up to seven days for a full refund.

“Our extensive testing and research have shown that customer’s expectations are changing. Customers want a personalized, on-demand and convenient experience from retailers, that allows them to shop on their terms, whenever and wherever is most convenient to them,” the spokeswoman says.

However, buying a car online is not as simple as ordering other products. For example, car shoppers want access to expert advice and guidance when they need it.

Providing that help will be the job of the CECs. Source: digitalcommerce360.com www.fiada.com

Monthly Round-up continued from Page 29.

“oral protest by a debtor to the repossessor against repossession prior to the repossessor seizing control of the collateral” constitutes breach of the peace.

The trial court found that there was an oral protest, and thus a breach of the peace, because the car owner’s attorney disputed the repossession over the phone. The trial court awarded the car owner damages, but she appealed the damages award, contending that she was entitled to treble damages under the Louisiana Unfair Trade Practices Act. On appeal, the lienholder argued that the repossession statute requires protest by the debtor, not the debtor’s representative. The Court of Appeal of Louisiana concluded that the trial court did not err in finding

that the car owner objected to the repossession and that a breach of the peace occurred when the agent towed the car despite that objection.

The car owner called her attorney, who, on behalf of the car owner, protested the repossession.

The appellate court also concluded that the trial court did not err in finding that the car owner was not entitled to treble damages under the LUTPA. The appellate court noted that the LUTPA requires treble damages “if the court finds the unfair or deceptive method, act, or practice was knowingly used, after being put on notice by the attorney general ….” The appellate court found no evidence that the lienholder had been put on notice by the attorney general prior to the repossession.

See Marks v. Motor City, 2019 La. App. LEXIS 291 (La. App. February 20, 2019).

COMPLIANCE TIP The Marks case brings to mind at least three compliance tips. The first is that repossession laws, which vary from state to state, can be tricky, and a dealer or finance company needs to have a written repossession policy reflecting that law. The second is that the repo agent described here is a vendor, and the dealer or finance company needs a written vendor management policy. Both policies should be reviewed by counsel. And finally, the court’s conclusion that Marks was not entitled to treble damages turned on the specific language of the Louisiana law – your state’s law might well dictate a different result.

Tom (thudson@hudco.com) and Nikki (nmunro@hudco.com) are partners in the law firm of Hudson Cook, LLP. For information,

visit www.counselorlibrary.com. Copyright CounselorLibrary.com 2019, all rights reserved.

2018-19 FIADA EXECUTIVE COMMITTEE:

BRAD JOEL

President Splish Splash Auto Sales Princeton, FL 33032 (305) 258-1191

LUIS GIRALDO

Regional Vice President Veneauto Cars Gainesville, FL (352) 870-2278

www.fiada.com

LISA COMPAGNO

SCOTT LANIER, CMD

BRANDI NOEGEL

STEVE MARBAIS, CMD

Senior Vice President Palm Tree Auto Sales Stuart, FL (772) 288-2099

Regional Vice President Noegel’s Auto Sales Starke, FL (904) 964-6461

Chairman of the Board Credit Cars Orlando, FL 32808 (407) 295-6211

Regional Vice President Marbais Enterprises, Inc. Ocoee, FL (407) 877-7422

FRANK FUZY

JENAY RHOADS

Secretary Treasurer Century Motors of S. Fla., Inc. Florida Auto Exchange Co., Inc Pompano Beach, FL 33064 Dunedin, FL (954) 785-0369 (727)-796-2886

TREVER VARNEY

Regional Vice President Next Ride LLC Largo, FL (727) 559-1191

JIM WINTERICK, SR.

Regional Vice President Gulfstream Motor Credit Miami, FL (305) 253-2335

April 2019 — 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 2019

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

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

Salvage Sale Thurs 11 AM

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