August 2014 issue

SINCE 1940

AUGUST 2014

www.FIADA.com

A Publication of the Florida Independent Automobile Dealers Association

Information and Insight for Florida Used Car Dealers

It’s convention time, me hearties!

Get ready to uncover a wealth of hidden jewels that will help your dealership shine.

SEE PAGE 19.

Early bird alert!

Register before AUGUST 31 and save up to $100 on your registration fee!

FULTON, MO PERMIT NO. 38

PA I D PRST STD U.S. POSTAGE

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August 2014 — 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 E XECUTIVE COMMITTEE Dino Mercurio

President

Jim Winterick, Sr.

Senior Vice President

Christopher Leedom

Chairman of the Board Phil Risley

Secretary Paul Matton

Treasurer Lisa Compagno

Regional Vice President Frank Fuzy

Regional Vice President George Hickey

Regional Vice President Steve Marbais, CMD

Regional Vice President

Govinda Romero

Regional Vice President

FIADA STAFF Lisette Mariner

Executive Director Terry Myers

Educational Instructor Sarah Langley

Administrative Director

Amelia Tillman

Member Services

Kilisha Parks

Education & Online Events Coordinator Christy Taylor

Editorial/Advertising

POSTMASTER:

Send address changes to

FIADA • 1840 Fiddler Court Tallahassee, FL 32308 (850) 385-2712 • Toll Free: (800) 237-0448 Fax (850) 385-3251 • www.FIADA.com The Independent Dealer is a publication of: Florida Independent Automobile Dealers Association, 1840 Fiddler Court, Tallahassee, FL 32308 The magazine is published every month in Tallahassee and distributed to Florida new, used, wholesale and lease/retail car dealers.

Advertising rates are available upon request.

The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Independent Dealer or the Association. Likewise, the appearance of advertisers, or their identification as members of FIADA, does not constitute an endorsement of the products or services featured.

www.fiada.com

Contents August 2014

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 Dino Mercurio

6

Executive Director’s Message Lisette Mariner

8

Back to the Basics Terry Myers advises on how to stay in the know on important information.

10

Member News

12

NIADA Certified 2.0 The Certified Pre-Owned program presented by NIADA has gotten an upgrade. Take advantage of this profit-building member benefit.

16

Keys to Insurance FIADA Insurance Agent of Record Kevin O’Connor

18

FIADA On-Demand Webinars Check out the topics that are available to access now.

19

Claim Ye Treasure!

Don’t be left out of the FIADA Annual Convention and Trade Show. See the tentative schedule and use our registration form to save your spot now to receive the Early Bird discount.

24

DHSMV News Information about insurance cancellation penalties; Department web links

26

Legislative Update FIADA Lobbyist Sandra Mortham

30

A Look at Current Legal Issues The monthly round-up of federal and legal issues affecting auto dealers.

34

Industry News August 2014 — Independent Dealer — 3

FROM THE PRESIDENT

What’s In It For You? A lot!

BY DINO MERCURIO, FIADA PRESIDENT

W

hen speaking to non-member dealers about joining the FIADA, one of the most common questions I get is: What’s in it for me?

As a second generation used car dealer and someone who has over 30 years as an FIADA member myself, I can tell you that I do not have enough space in this column to go over all the amazing benefits you will receive when joining! Every dealer is unique, and many of us have different wants, needs, and expectations of what makes being a part of the Association valuable, but I can assure you that the benefits of joining FIADA far outweigh the minimal dues.

I won’t spend a lot of time touting the professional and top-notch representation you will receive from our full time lobbyist Sandra Mortham with our legislators in Tallahassee, the toll-free hotline that can get you answers quickly to compliance and procedural issues with the governmental agencies that regulate our industry (i.e. the DMV and DOR), the free legal consultation from Rob Sickles, one of the top auto industry lawyers in the country, or even the thousands of dollars in coupons you will receive that range from auction buy and sell fees to great discounts from our supporting suppliers and vendors that will save your business a ton of money. What I would like to spend a little time on though, is touting the upcoming FIADA Convention.

This amazing event will take place Oct. 9-12 at the Omni ChampionsGate Resort in Orlando. This is the ultimate trade show for car dealers and should be a must attend date to mark on your calendar now. There will be an unbelievable amount of opportunities for you to gain information, knowledge, products, and networking during this time. Professional speakers, training sessions and seminars will be available, and not only are they invaluable tools to help you be more profitable, you will also receive your eight hours of DMV required continuing education by attending. There will be a huge exhibit hall filled with vendors from every spectrum of

4 — Independent Dealer — August 2014

the car industry. Need a financing or floor planning source?

They will be there! Need a GPS provider? They will be there!

Need to talk with auto auctions? They will be there! Need a temp tag or ELT provider? They will be there! Need garage liability insurance or a dealer bond? They will be there!

Need dealer specific software? They will be there! Want to learn more about advertising, websites, or online sales and marketing? They will be there! The list goes on and on, and all these vendors and suppliers will have booths lined up, all in one convenient location and you will be able to talk with them one on one and face to face in an informal atmosphere.

Not only will you be able to spend time at the numerous booths, you will have time to network with other successful dealers from around the state. It is a great time to make new contacts, forge new business relationships, or even bolster existing relationships you may already have with vendors, suppliers and dealers. I truly believe that the networking time at a professionally run event like the FIADA Convention will be absolutely invaluable to you and your business. Since it will be held at the beautiful Omni Resort in Orlando, the mecca of family fun and entertainment, you can even plan on bringing your spouse and kids! The resort has two pools, a water slide, and a lazy river on site, and is only minutes from Disney, Universal, Sea World, etc. And, the FIADA is offering an Early Bird Discount if you register by Aug. 31, so don’t hesitate to sign up today!

You will find a complete schedule of events, registration form and hotel info starting on page 19 of this issue, or you can view the same info and register online at www.fiada.com If you have any further questions, or just prefer to register by speaking to an actual person, call the FIADA office Toll Free at 1-800-237-0448 I hope to see you there!

Dino Mercurio FIADA President www.fiada.com

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August 2014 — Independent Dealer — 5

EXECUTIVE DIREC TOR’S MESSAGE

Volunteers Make All the Difference

BY LISET TE MARINER, EXECUTIVE DIREC TOR

A

s we approach the changing of the guard, I want to take a moment to thank our volunteers. Many of you see the dedication our board and committee members put forth to advance the Association, but since this particular issue is being sent to non-members as well, non-members may not know of the volunteers like our FIADA President, Dino Mercurio and Regional VP, Lisa Compagno who took time away from their business to present an award to Senator Joe Negron for his role in sponsoring the bill to reduce registration fees. This Association has been built on people like this, volunteering their time to make their industry better.

We had a successful legislative session with the reinstatement of the surrender stop and the reduction in registration fees. To keep the momentum moving forward the FIADA legislative committee is working toward our agenda to increase the penalty for curbstoning. Members are invited to be a volunteer, join a committee and contribute to the FIADA PAC fund. Nonmembers can also give back to the industry and ensure success by making a contribution to the FIADA PAC fund. Check out the message from our Lobbyist Sandra Mortham on page 26.

The FIADA Convention Committee has put together a wonderful program with a great line up of speakers and panels, all showcasing the many issues facing dealers. This year’s theme is…Pirates! There is time to learn and network with successful dealers. The exhibit hall features a variety of products and services all in one place. You can’t have a pirate theme and not have a treasure chest; don’t miss the opportunity to win cash prizes. We will be giving away five $500 prizes. Try your key that you will receive when you arrive at registration during the convention and see if it unlocks the treasure box located in the Exhibit Hall.

6 — Independent Dealer — August 2014

Senator Joe Negron (center) receives an award of recognition from FIADA President Dino Mercurio (right) and Regional Vice President Lisa Compagno (left).

Our board and committee members help make the Association successful. Elections for the 2015 executive committee take place at the member meeting, Oct. 10 at the FIADA Annual Convention. I encourage you to come take part in this annual meeting and help shape the future of the Association.

Don’t wait to book your convention reservations. Take advantage of the early bird discounts (good through the end of the month) and register to attend today. When you join us in Orlando, you’ll have the chance to meet the FIADA board and committee members. I know it will be a great experience. Find out how to register on page 19 or log on to www.fiada.com. www.fiada.com

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BACK TO THE BASICS

Change is Good – As Long as You Know About it!

well. Go to http://dor.myflorida.com/ dor/list and register. You may sign up to automatically get an e-mail notice when they post: • •

It is vital to your business to know about changes in the industry.

Get on the list of the major State agencies to be in the know.

BY TERRY MYERS

C

hange is taking place while you are reading this article.

Change can make a significant difference, sometimes positive— sometimes negative, to your bottom line. If you know it is coming or has happened, you can make important decisions to embrace it or brace for it.

be certain to share it with others at the dealership. If it is not, you may delete it and move on. At least you had the opportunity to decide its relevance.

How do you keep up with change? For many, it is the school of hard knocks.

This is an effective but very expensive teacher. For others, listening to fellow dealers is where they get their news.

Fellow dealers may or may not have the facts correct.

Sign up to get electronic updates and reminders from state agencies like the DMV and DOR as well as industry information from FIADA and NIADA.

One important resource, among many, you need to be aware of is the Division of Motorist Services Email Update List.

When there are changes that affect the industry, updates are emailed to everyone on the update list.

If you want to see what the Division of Motorist Services and the tag office see at the same time they see it, subscribe to the: Procedure Email Updates at: http:// www3.flhsmv.gov/dmv/Proc/ Revisions/subscribe1.cfm On the site, you give them your email information. Changes will come direct to your computer so that you may decide if it is immediately relevant to your dealership. If it is, then 8 — Independent Dealer — August 2014

Register with the Department of Revenue to be kept updated with news and changes provided by them, as

•

Tax Information Publications (TIPs) for all taxes. (You can select the tax types you wish to receive.)

Proposed rules, notices of rule development workshops, and notices of emergency rulemaking (for child support enforcement, property tax oversight and state tax administration) Quarterly tax publication Facts on Tax.

You may also sign up to receive due date reminders for reemployment tax and sales and use tax.

The FIADA and NIADA provide excellent information and go to great lengths to keep dealer members informed through many avenues.

Town hall meetings, Webinars, monthly publications and conventions are just a few. The association lobbyist and attorney are constantly on the watch for items of vital interest to the industry.

Yes, change is good……if you know about it. What are you doing to keep updated?

Articles are the opinion of the author and are not intended to be regulatory, 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. Copyright 2014, Terry LB Myers, author, lecturer, FIADA instructor, FADS owner/instructor. www.fiada.com

August 2014 — Independent Dealer — 9

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30+ Year Members Chuck Carlson Auto Sales, Inc. Langston Motors Mike Kashtan’s Superior A/S Progressive Motors, Inc. Tampa Machinery Auction 20+ Year Members Auto Brokers of Orlando Edison Bridge Auto Sales Gulfstream Motor Credit Co. Motorcar Gallery, Inc. Park Motors, Inc. 10+ Year Members Creel Motors The Car Cabana of Melbourne Warren’s Auto Sales Under 10 Year Members Anderson’s Affordable Auto Apex Auto, Inc. Auto Mart #1, LLC AutoTrader.com Cary Auto Sales Classic Cars of Florida, LLC Coastline Motor Company CounselorLibrary.com/Hudson Cook DealerCenter Dealers Insurance Services, LLC Direct Auto Exchange, LLC Elite Jeeps G & D Auto Sales Corporation Jeffs Auto Sales and Service, LLC Killgore, Pearlman, Stamp, Ornstein & Squires, P.A Lazydays McKinna Auto Sales Miami International Autos National Auto Lenders, Inc. Nice Car, Inc. PCT Enterprises Of FL, LLC Rick’s Auto Marketing Center South Scotti’s Auto Repair & Sales Sensible Auto Lending Sun Financial Holding LLC Systems 2000

Pompano Beach, Florida Eustis, Florida Pinellas Park, Florida Pompano Beach, Florida Tampa, Florida Orlando, Florida Fort Myers, Florida Miami, Florida Ft Lauderdale, Florida Jacksonville, Florida Saint Petersburg, Florida Rockledge, Florida Avon Park, Florida Dunnellon, Florida Apopka, Florida Pensacola, Florida Tampa, Florida Saint Augustine, Florida Fort Myers, Florida Shalimar, Florida Hanover, Maryland Los Angeles, California Orlando, Florida Tallahassee, Florida Destin, Florida Tampa, Florida Port Charlotte, Florida Orlando, Florida Seffner, Florida Brunswick, Georgia Miami, Florida Miami Lakes, Florida Hollywood, Florida Englewood, Florida Carthage, North Carolina Sarasota, Florida Old Saybrook, Connecticut Hollywood, Florida Altamonte Springs, Florida

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The rules are easy: when a new member signs up with your name as sponsor on their application, you will receive $50.00. In addition, you are eligible for membership recruitment awards and recognition from both the FIADA and NIADA. 10 — Independent Dealer — August 2014

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August 2014 — Independent Dealer — 11

REINTRODUCING THE NATIONAL CPO PROGRAM THAT WAS BUILT BY DEALERS, FOR DEALERS

C

Certified Pre-Owned has become the industry buzzword lately. The CPO model, created by franchise dealers and OEMs, has set a new standard for used car sales and redefined the way customers shop for cars.

In 2013, sales of manufacturercertified pre-owned vehicles totaled a record 2.1 million units.

National, high-dollar marketing campaigns have educated the carbuying public about the benefits of buying a used car that has been certified, so much so that it has now come to be an expected part of the process. Much like a missing CarFax, if a car has not been certified then the customer starts to wonder what the dealer is hiding.

For the most part, independent dealers have been left out of the CPO game. Good dealers, of course, have always inspected their cars and done their best to represent the condition of the vehicle as accurately as possible and some will even stand behind their inventory by offering some type of limited warranty to ease the mind of a wary customer. Even so, customers can still be a little skittish

of a dealer-endorsed certified car and many will end up paying more at a franchise dealer’s used car lot to get the label they are after.

That all changes, however, with the re-introduction of the NIADA Certified Pre-Owned program. NIADA Certified has been around for a few years, but recently underwent some extended enhancements and tweaks that have made it an attractive option to customers and a powerful profitcenter for dealers.

“The NIADA Certified program allows independents to play on an even field with the new car dealers,” said NIADA Senior Vice President Frank Fuzy. “It’s 50 percent easier to sell a car that’s been certified and has a warranty, and we know that today every sale counts!”

The NIADA Certified program is backed by Warrantech an AmTrust Financial Company. NIADA approached the company earlier this year to retool the program and develop something that made sense for independents. Warrantech, an AmTrust Financial Company, who has worked with several other national partners to build similar programs, compiled all the data they could from dealers, consumers and Associations to create a program that they say was “built for dealers by dealers.”

“We basically asked ‘what do you want’ and then we listened to what everyone said,” National Business Development Manager Natalie Suarez said about the changes to the program. Since it kicked off in January the number of dealers using the program has quadrupled. Suarez says dealers understanding exactly what CPO is, and can be, is part of the reason.

“Customers want peace of mind.

They are looking for cars that are advertised and branded as something they can trust has been thoroughly checked out. NIADA Certified gives them a guarantee,” Suarez said.

Some of the biggest changes to the new program include: •

Three very

Continued on Page 14 12 — Independent Dealer — August 2014

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Renewal Time for RV and Mobile Home Dealers

R

enewal time again for Mobile Home and Recreational Vehicle Dealers! The Department of Highway Safety and Motor Vehicles reminds Mobile Home and Recreational Vehicle Dealer dealers that now is the time to renew your dealer license for licensing period 10/1/2014-9/30/2015. Renewal applications, fees and required documents must be filed to ensure the timely renewal of your motor vehicle dealer’s license.

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On July 11, 2014, the Department e-mailed renewal notices and applications to all 1329 licensed Mobile Home and Recreational Vehicle Dealers. A completed renewal application form (HSMV 86720, “Renewal Application for Motor Vehicle, Mobile Home, or Recreational Vehicle Dealers”), required documents and fee must be submitted to the local Regional Office responsible for your dealership.

This form is available on the Department’s website at http:// www.flhsmv.gov/html/forms.html. The Regional Office list can be accessed at http://www.flhsmv.gov/dmv/BUR_Field_ Ops_Address.pdf and the Dealer Training Schools at http:// www.flhsmv.gov/dmv/L_Dealer_Trng_Sch.pdf.

www.fiada.com

August 2014 — Independent Dealer — 13

NIADA Certified continued from Page 12.

• •

• •

• • •

flexible CPO Limited Warranty programs which include Basic, Standard and Enhanced options.

CPO coverage for vehicles up to 14 years in age and with up to 150,000 miles.

100 percent credit of the CPO Limited Warranty investment if the customer upgrades to an NIADA VSC contract No surcharges Enhanced NIADA CPO marketing resources, including large window banners, lot flags, etc.

A more seamless, less time consuming CPO contract forms processing procedure E-Bay Motors promotion and inventory listing support/ endorsement ASE certified technician vehicle inspection requirement enhancing validity to the customer

NIADA Certified cars can be advertised with the designation.

A special designation on E-Bay Motors provides enhanced listing support and endorsement.

CPO options include 3 year/3,000 miles, 6 year/6,000 miles and 12 year/12,000 miles.

certified status can cover the cost.

“There is a small cost to it in the beginning, but it gives leverage to the dealer to ask for more money in the price because of the value it has being certified. Consumers will and do pay more for certified,” Suarez said.

NIADA Certified is exclusive to “If you ask them, about one in four NIADA members (FIADA members customers will upgrade to the service of course gain NIADA membership warranty, so the program really pays automatically). for itself,” Fuzy Dealers choose said his dealership By adding the CPO status has seen so much which vehicles to a vehicle, dealers can they want to success by utilizing certify, as well leverage a higher asking NIADA Certified as the terms (3 that he jokingly price as a result of the months/3,000 says he doesn’t increased value it brings. want other dealers miles, 6 months/6,000 to know about it.

Consumers will, and do, miles or 12 pay more for certified. months/12,000 “Don’t do it” Fuzy miles) of the teases to other warranties. dealers, “because Current model year plus 14 year your sales will increase and you’ll be units with zero to 150,000 miles are competing with me.” eligible. There is a cost to the dealer to certify, however if the customer There is more detailed information upgrades to a service contract the about NIADA Certified at the official fee is waived. Even if they don’t, website that has been created for it at however, the value added with the www.niadacertified.com.

14 — Independent Dealer — August 2014

High-quality marketing materials including digital ads, brochures and Buyer’s Guide templates are available to NIADA Certified participants, as well as customized training to learn how to make the program work for your dealership.

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August 2014 — Independent Dealer — 15

K K EE Y Y SS TT O O II N N SS U UR RA AN NC C EE

Insurance Cancellation Predictions for the NewBusiness Year is Risky

BY KEVIN O’CONNOR, INSURANCE AGENT OF RECORD

I

nsurance cancellations due non-payment premiums am excited to announce thetoresurrection ofof “Keys to are just a part of the business that we as agents learn Insurance,” a column I wrote for many years in this to live with.throughout No one knows betterand thanup meuntil that2005. smallThe magazine the 1990s businesses can run into cash flow challenges.

Unfortunately, column touched on the subjects relating to the insurance for many, insurance premiumsmotor tend to be one of the first needs of the non-franchised vehicle dealer. things to be set aside.

Starting this month, we will be doing a quarterly edition The problem is amplified the autosubjects dealer industry since of the column.

We plan toindiscuss such as risk over half the dealers Florida are insured by management ideas toinhelp reduce your insurance costs and surplus lines companies who aren’t required eliminate unnecessary claims, changes in insurance market to report cancellations to the state.

It’s not availability, new conditions, trends in pricing and coverage uncommon for a dealer to purchase his policy products available to the dealer industry and more. and miss the first payment only to have his policy cancelled a month after he year bought it and This past year was a challenging in our business, in some cases, the state is none the wiser.

They especially here in Florida. A new “wind modeling” system may make it months running their business was implemented which completely changed the way with no insurance until the state triggers a check suchsystem as the carriers look at certain areas.

This new policy renewal or theidentified license renewal. that non-coastal areas had

In additiontotofind letting one’s on coverage dangerous it difficult policies dealerslapse thatbeing neverahad an decision for a dealer, it creates another issue for our friends issue in past years. These changes caused a number of in Tallahassee.

They aretocharged with enforcing the law and insurance companies withdraw from the Florida market the law says you have to have insurance.

In the past, this or limit what they offer causing a supply and demand issue problem took a back raised seat to rates. other enforcement issues. which subsequently On the positive side, the insurance industry has record surplus capital thanks in This no longer thethan case.expected The DMV has startedlosses to getover largeispart to lower catastrophe serious about enforcing the problem by implementing fines the last few years and increased investments yields. Most of the insurance industry analysts expect the trend of

While the reasons insurance increasing rates tofor slowmissing or even reverse in the near future.

Unfortunately there are no crystal balls todealer tell us what to payments can make sense to the at expect in 2014. All we can do is keep a close eye on the do our best to keep the readers of thisare column the time,industry it’s aand dangerous game.

There ahead of the curve. several consequences to consider.

more hurricane exposure than was While the reasons for missing insurance payments can make previously believed and pricing sense to the dealer at the time,ofit’spolicies a dangerous game. were revisedThere are several consequences to consider: accordingly. The • If the state were to find out, they place an immediate claims from administrative hold on the license and shut the dealer 2012’s down. If the dealer thought cash flow was a problem Hurricane before, try shutting off the revenue stream and see what Sandy had happens. a devastating • If an accident were to occur duringeffect the time the Dealers policy on the was cancelled, the dealer would be subject to ainsurance liability Open Lot loss which could result in a judgment against them marketplace. As a and they could be forced to dissolve result, the business.

All the insurance the blood, sweat and tears, not to mention the money carriers are now invested would be all for naught. looking more closely at flood the dealer suffered a loss such as • If a vehicle owned by exposure than ever before making theft or fire… well you get it, back to the cash flow.

10 — Independent Dealer — August January2014 2014 16

On a personal note, I wanted to thank the FIADA Board on dealers who cancel. Fines were always of Directors forlet thetheir votepolicies of confidence in electing us their an option but had not been used until recently.

For whatever Agent of Record. Our team of insurance professionals reason, new consumer complaints or to maybe specialize inleadership, your industry and make it our job knowjust ahow better understanding of the the state changed your business works andproblem, understand whathas your the way it is handling the issue.

They’ve determined dealership needs to best protect your assets. We arethe proverbial “wrist slap” has been the only available for questions from anyunsuccessful association and member way to make point isorwith monetary As oftothe whether theytheir are clients not aand we willpenalty. do our best last Automobile Dealer Industry Advisory Board meeting answer those questions in a completely impartial manner.I attended, numerous fines had been assessed and they vow to continue We hope the thatcrackdown.

Keys to Insurance is an informative and

interesting column and proves to the readers that insurance Missing a monthly payment just got expensive. A much can be fun. better option is to contact your insurance agent before the policy lapses and see if there are any ways to ease the pain.

It’s never good toof reduce or drop coverage, but it’s whole Kevin O’Connor Dealers Insurance Services, Inc.a is the lot better than losing the policy all together.

FIADA Insurance Agent of Record. If you have insurance related questions, contact FIADA at (800) 237-0448 or visit Kevin O’Connor of www.dealersinsurance.com.

Dealer Insurance Services, Inc. is the the DIS website at FIADA Insurance Agent of Record.

www.fiada.com www.fiada.com

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August 2014 — Independent Dealer — 17

FIADA is constantly building the on-demand webinar library. Members have access to all of our past webinars at no cost, so login to your account to view: It’s a Popularity Contest: Simple ways to Drive Traffic to your Web Site and Inventory Presented by Tracy Amato • • • • • •

What factors attribute to obtaining higher search engine rankings Tips on how optimize content on your website The power of YouTube and blogging How social media impacts your search ranking The importance of a mobile presence How listing inventory on multiple marketplaces like eBay, Craigslist, and classifieds will increase website traffic

Don’t Get Stuck in the Mud of Today’s Regulatory Landscape Presented by Rob Sickles • • • • •

Federal and State regulatory issues from an expert attorney Consumer Financial Protection Bureau Florida Attorney General Florida Department of Financial Services Florida Department of Motor Vehicles

Hot Topics in the Payments Industry: Plain Talk on PCI Compliance and Influencing Consumer Behavior Presented by Jon Leedom and Dan Steiner of the Leedom Group FREE for FIADA Members and only $10.00 for Nonmembers. Members, please sign in to access your free course.

• Attendees will learn: • PCI Compliance Register online: Go to www.FIADA.com and click on Webinars • Convenience Fees under the Dealer Training School tab.

• Surcharge Rules

FIADA is your number one source for advice and information. Technical questions, legal questions, regulatory questions...bring them on!

Our network of industry veterans, professionals and consultants can help you find the answers you are looking for. The best part is, it’s free to FIADA members. Call us anytime at (800) 237-0448!

Got a question after hours? You can access our online resources 24/7 at www.FIADA.com 18 — Independent Dealer — August 2014

www.fiada.com

Come be a part of the ultimate dealer experience of the year at the 2014 FIADA Annual Convention. This year’s theme: Pirate Party! Arrrghh...Don’t forget ye eye patches, booty, pirate garb and have a swashbuckling good time with the “best of the best” as Florida’s top dealers come together for a weekend of education, networking and fun.

When you arrive at the registration desk, you’ll get a special key to try in our convention treasure chest for a chance to win fabulous prizes, including $500 cash! Plus, enjoy prize drawings from our exhibit hall vendors.

Get your convention registration complete and hotel reservations made before AUGUST 31 and enjoy special early bird discounts! Use the form on page 21 or go online to www.FIADA.com. www.fiada.com

August 2014 — Independent Dealer — 19

TENTATIVE SCHEDULE THURSDAY, OCT. 9, 2014

3:00 - 7:00 PM

Registration Open

6:30 - 8:30 PM

Welcome Reception

FRIDAY, OCT. 10, 2014

7:30 AM - 4:00 PM

Registration Open

8:00 - 9:00 AM

Breakfast

9:00 -10:00 AM

10:45 -11:45 AM

Opening Keynote: DJ Harrington, Generating Your Own Business Legislative Keynote, Panel

12:00 -1:30 PM

Networking Lunch

1:45 -2:45 PM

Workshops

3:00 -4:00 PM

Don’t be Caught Sailing with

Three Sheets to the Wind: Division of Motorist Services

5:00 -9:00 PM

Exhibit Hall Opening/ Family Fun Night

SATURDAY, OCT. 11, 2014

7:30 AM - 3:00 PM

Registration Open

8:00 - 9:00 AM

Breakfast with Exhibitors

9:00 -10:00 AM

Workshops

10:15 -11:15 AM Keynote & Awards Ceremony:

Jay Guburd, Rev Up Your Relationships

20 — Independent Dealer — August 2014

12:00 - 2:30 PM

Lunch with Exhibitors & Exhibitor Giveaways

2:45 - 3:45 PM

Workshop

4:00 - 5:30 PM

Legal Panel: How to Fend off Legal Trouble

5:30 - 7:00 PM

Closing Reception www.fiada.com

2014 FIADA Annual Convention Registration Form COMPANY INFORMATION

Company:___________________________________________________________________________________________________________ Address:__________________________________________________ City, State, Zip:_____________________________________________ Phone:___________________________________________________ Fax:______________________________________________________ E-mail:___________________________________________________ Website:__________________________________________________

REGISTRATION INFORMATION FIADA MEMBER DISCOUNTED REGISTRATION RATES

EARLY BIRD (2/1 - 8/31)

REGULAR (9/1 - 10/3)

ON-SITE (10/4 - 10/11)

[

] $249

[

] $299

[

] $349

Badge Name:___________________________________________________________

[

] $195

[

] $195

[

] $195

Badge Name:___________________________________________________________

[

] $195

[

] $195

[

] $195

[

] $100

[

] $100

[

] $100

[

] $99

[

] $124

[

] $149

Badge Name:___________________________________________________________

[

] $299

[

] $349

[

] $399

Badge Name:___________________________________________________________

[

] $195

[

] $195

[

] $195

Badge Name:___________________________________________________________

[

] $195

[

] $195

[

] $195

[

] $100

[

] $100

[

] $100

[

] $124

[

] $149

[

] $175

MEMBER

FULL ACCESS PASS Badge Name:___________________________________________________________

ADDITIONAL FULL ACCESS PASS (Available with purchase of Full Access Pass)

SPOUSE FULL ACCESS PASS (Available with purchase of Full Access Pass) Badge Name:___________________________________________________________ EDUCATION PASS (Does not include meals) Badge Name:___________________________________________________________

NON-MEMBER REGISTRATION RATES

FULL ACCESS PASS NON ADDITIONAL FULL ACCESS PASS (Available with purchase of Full Access Pass) MEMBER

SPOUSE FULL ACCESS PASS (Available with purchase of Full Access Pass) Badge Name:___________________________________________________________ EDUCATION PASS (Does not include meals) Badge Name:___________________________________________________________

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 METHOD [

] 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 Sunday, September 8, 2014, we will refund your registration fee. If cancellation is received between 9/9/14 and 9/30/14, we will refund your registration fee less a $25 processing fee. Fees cannot be refunded for registrations cancelled after 10/1/14 or for no-shows. PHOTO/VIDEO RELEASE: By registering for the 2014 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.

HOTEL INFORMATION: Omni ChampionsGate. Hotel stay is separate from convention registration. Reservations must be made BEFORE SEPTEMBER 8, 2014 to qualify for group discount of $149 per night (plus tax) For reservations call (800) THE-OMNI/(800) 843-6664. www.fiada.com Mail: FIADA, 1840 Fiddler Court, Tallahassee, FL 32308

Fax: (850) 385-3251

August June 2014 2014 —— Independent Independent Dealer —— 2121 Online: www.FIADA.com Call: Dealer (800) 237-0448

18— —Independent IndependentDealer Dealer— —August 2013 18 June 2013 22 August 2014 18— —Independent IndependentDealer Dealer— —January 2014

www.fiada.com www.fiada.com www.fiada.com www.fiada.com

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August 2014 — Independent Dealer — 23

DHSMV NEWS

DHSMV Issues Advisory About Insurance Cancellation Penalty An important notice to dealers about enforcement of penalties for cancellation of garage liability insurance.

T

he Division of Motorist Services issued a technical advisory to all of Florida’s licensed independent auto dealers earlier this month: don’t let your garage liability insurance coverage lapse or you could pay the consequences.

Overview: The advisory explains that Section 320.27(3), Florida Statutes, states in part that Motor Vehicle Dealers must submit a garage liability insurance policy or a general liability insurance policy coupled with a business automobile policy.

Such policy shall be for the license period, and evidence of a new or continued policy shall be delivered to the Department at the beginning of each license period.

Section 320.27(12), Florida Statutes states in part that the Department may levy and collect a civil fine in an amount to to exceed $1,000 for each violation, against any license if it finds that the licensee has violated any provision of this section or has violated any other law of this state or the federal law and administrative rule set forth in paragraph (9)(a) related to dealing in motor vehicles.

Any license shall be entitled to a hearing pursuant to chapter 120 if the licensee contests the fine levied, or about to be levied upon him or her.

24 — Independent Dealer — August 2014

Details: Garage liability insurance

companies notify the Department in writing that they will cancel the insurance policy for a dealer on a specific date giving reasons for the cancellations. If the dealers does not provide proof of reinstatement or new insurance by the

effective date of the cancellation, the Department will issue an Emergency Suspension Order (ESO) and Administrative Complaint suspending the dealer’s license.

Once the ESO is served on the dealer, the dealer then has 21 days to respond to the ESO. If, at the end of the 21 day period, the dealers does not provide proof of reinstatement or a new insurance policy, the Department will revoke the dealer’s license by way of an Administrative Action.

Conclusion: The Department will take administrative action and fine all dealers that fail to comply with section 320.27(2), Florida Statutes.

The fine for a lapse in coverage of Garage Liability Inusrance Coverage is $500 per incident.

TECHNICAL ADVISORY

DIVISION OF MOTORIST SERVICES DATE:

08/01/2014

Technical Advisory DE14-003

SUBJECT: Important Notice to all Lice nsed Dealers regarding the Penalty for Cancellation of Garage Liability Insurance by their Garage Liability Insurance Com panies Overview:

Section 320.27(3), Florida Statutes states in part that Motor Vehicle Dealers must submit a garage liability insurance policy or a general liability insurance policy coupled with a business automobile policy.

Such policy shall be for the license period , and evidence of a new or continued policy shall be delivered to the Department at the beginning of each license period.

Section 320.27(12), Florida Statutes states in part that the Department may levy and collect a civil fine in an amount not to exceed $1,000 for each violation, against any licensee if it finds that the licensee has violated any provision of this section or has violated any other law of this state or the federal law and administrative rule set forth in parag raph (9)(a) related to dealing in moto r vehicles. Any licensee shall be entitled to a hearing pursuant to chapter 120 if the licensee contests the fine levied, or about to be levied, upon him or her.

Details:

Garage liability insurance companies notify the Department in writing that they will cancel the insurance policy for a dealer on a specif ic date giving reasons for the cancellation . If the dealer does not provide proof of reinstatement or new insurance by the effective date of the cancellation, the Department will issue an Emergency Suspension Order (ESO) and Administra tive Complaint suspending the dealer’s license. Once the ESO is served on the dealer, the dealer then has 21 days to respond to the ESO. If, at the end of the 21 day period, the dealer does not provide proof of reinstatement or new insurance policy, the Department will revoke the dealer's license by way of an Administrative Action.

Conclusion:

The Department will take administrati ve action and fine all dealers that fail to comply with section 320.27(2), Florida Statutes.

The fine for a lapse in coverage of Garag e Liability Insurance Coverage is $500 per incide nt.

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August 2014 — Independent Dealer — 25

L E G I S L AT I V E U P D AT E

To Have Success, We Need Support

BY SANDRA MORTHAM, FIADA LOBBYIST

F

IADA had a great year in Tallahassee this session.

One of the biggest stories was of course the DMV fee rollback. Florida drivers will save $400 million dollars with the passing of SB156, as tag and registration fees roll back to pre-2009 levels.

Another issue near and dear to dealers was getting surrender stop legislation back in tact. Thanks to Rep. Doug Broxson and Senator Jeff Brandes, the Governor signed the Department of Highway Safety bill which ensures you have some leverage when it comes to recovering a vehicle your customer is not paying on. As a refresher, here’s how it works: Section 320.02(17), Florida Statutes, authorizes the Department to withhold registration, renewal or replacement and not issue a revalidation sticker or replacement license plate for the vehicle identified in the notice by the lienor until a court orders the person’s name removed from the list as provided in s. 320.1316.

Section 320.1316, Florida Statutes, provides that the lienor may submit written notice to the Department to surrender a motor vehicle or vessel that has been disposed of, concealed, removed, or destroyed by the lienee. The department shall place the name of the registered owner of that motor vehicle on the list of those persons who may not be issued a license plate, revalidation sticker, or replacement license plate. If the motor vehicle is owned jointly by more than one person, the name of each registered owner shall be placed on the list.

In September 2012, the Department stopped enforcement of F.S. 320.1316 due to pending legal action. At that time the Department reported 21,000 Surrender Stops in place and had handled only a handful of disputes relating to Surrender Stop challenges. The Department’s legal staff determined that because the current language included “may” and not “shall,” the Department could stop enforcement.

26 — Independent Dealer — August 2014

Thanks to our successful efforts in the Capitol, the surrender stop is now back in place and can be utilized as a valuable tool for lienholder protection. Here are a few things to know: PROVIDE NOTICE TO SURRENDER MOTOR VEHICLE OR VESSEL As the lienholder, complete and send form HSMV 82192, Notice to Surrender Motor Vehicle or Vessel, to the registered owner of the motor vehicle or vessel requiring the registered owner to surrender the motor vehicle or vessel to a specified address. Failure to surrender the motor vehicle or vessel violates section 320.1316, F.S., and results in the registered owner’s name being placed on a list.

A copy of form HSMV 82192, Notice to Surrender Motor Vehicle or Vessel, must be submitted with the completed and signed form HSMV 82191, Notice or Discharge of Repossession Recovery Attempt, when applying to add a repossession recovery attempt stop. (NOTE: A Repossession Recovery Attempt stop may not be placed on a mobile home.)

Once on the list, the Department may not issue a license plate, revalidation sticker, or replacement license plate for the vehicle, or a vessel registration number or decal for the vessel, owned by the lienee which is identified in the claim by the lienor.

ADDING A REPOSSESSION RECOVERY ATTEMPT STOP: The Department may withhold the registration of a motor vehicle or vessel when a lienholder notifies the department of the owner or co‐owner’s failure to surrender a motor vehicle/vessel under a repossession order.

The lienholder must complete and sign a form HSMV Continued on Page 28 www.fiada.com

LINKS TO HELPFUL DMV LICENSING INFO The Department has posted a list of 501 Independent, Auction, Wholesale and Salvage dealers who have not renewed for licensing period 5/1/2014-4/30/2015 The direct link to this list is http://flhsmv.gov/dmv/bulletins/2014/ No_Dealer_License_Renewal_for_Period_050114_043015.pdf.

You can also access the list by going to the Department’s link at http://flhsmv.gov/dmv/bulletins/list2014.html and click on June 25, 2014 posting List of Independent Motor Vehicle Dealers, Auction Dealers, Wholesale dealers and Salvage Dealers Who Did Not Renew for Licensing Period 5/1/2014-4/30/2015 Valuable information on licensing procedures and requirements can be accessed at the Department’s website at http://www. flhsmv.gov/html/titlinf.html and selecting “Dealer, Manufacturer, Distributor and Importer Information.”

Scan these codes to access the lists from your mobile device.

List of dealers who have not renewed.

Archive of DMV bulletins

Licensing procedures and requirements

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www.fiada.com

August 2014 — Independent Dealer — 27

LEGISLATIVE UPDATE continued from Page 26.

Recovery Attempt must be submitted to the department. The mailing address is on the top of the form.

82191, Notice or Discharge of Repossession Recovery Attempt. This form must be submitted to the department in order to process the stop. The mailing address is on the top of the form.

The registered owner of the vehicle or vessel may dispute a notice to surrender the vehicle or vessel or his or her inclusion on the list of those persons who may not be issued a license plate, revalidation sticker, or replacement license plate under s. 320.03(8), or a vessel registration number or decal, by bringing a civil action in the county in which he or she resides.

A copy of form HSMV 82192, Notice to Surrender Motor Vehicle or Vessel, must be submitted with the completed and signed form HSMV 82191, Notice or Discharge of Repossession Recovery Attempt, when applying to add a repossession recovery attempt stop.

The individual(s) (who the stop has been placed against) may apply for a certificate of title to a newly acquired motor vehicle or vessel and an original registration or transfer an existing license plate. However, an extension of the registration period on existing registrations may not be processed until the stop has been cleared.

For your convenience, FIADA members can download Forms 82191 and 82192 in the Resource Library section at www.FIADA.com. You can also download a copy of the entire procedure information from DHSMV at http://www3. flhsmv.gov/dmv/Proc/RS/RS-50.pdf.

It’s successes like the Surrender Stop reinstatement and the fee rollbacks that should make you proud to be a member of the FIADA! In order to continue these kinds of victories, however, it is important to build and maintain a solid PAC Fund. Your contributions to the PAC help us build relationships with state legislators and make it easier to get our message out to the people who need to hear it. Unite with your fellow dealers and help protect the industry that you love.

A Repossession Recovery Attempt Stop is a registration stop and is applied only to the vehicle or vessel, which is identified in the claim by the lienor.

REMOVAL OF A REPOSSESSION RECOVERY ATTEMPT STOP: When the lienholder needs to have a stop removed, (vehicle or vessel recovered, etc.) an accurately completed and signed form HSMV 82191, Notice or Discharge of Repossession

SUPPORT THE FIADA PAC FUND! Your PAC Contribution helps spread awareness and gain support of issues affecting independent dealers in the state’s capitol.

CONTRIBUTION INFORMATION Contributor’s Name:________________________________________________________________________________ Dealership/Company:_______________________________________________________________________________ Street Address, City, State, Zip:___________________________________________________________________________ q

Check q

q

$500

Credit Card (one time contribution) q q

$250

q

$100

Visa

q

q

Monthly Credit Card Contribution (until cancel)

$50

q

$25

q

_________

PAYMENT INFORMATION Credit Card Information:

q

MasterCard

q

American Express

q

Discover

Make your check payable to FIADA-PAC and mail to FIADA at: 1840 Fiddler Court, Tallahassee, FL 32308 FAX: 850.385.3251

Name on Card: Card number: Exp Date:

Sec. Code:

Billing Phone:

Billing Address Authorized Signature 28 — Independent Dealer — August 2014

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August 2014 — Independent Dealer — 29

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 Do you need information on the basics of auto leasing? Would you like a free overview of how car leasing works? If so, go to www.federalreserve.gov and click on “Consumer Information.” Then look at the left side of the screen and click on “Leasing.” That will take you to a Federal Reserve Board booklet called “The Keys to Vehicle Leasing.”

The booklet is intended as a consumer education tool, but we think it does a good job of covering the basics for dealers seeking to learn about leasing.

FEDERAL DEVELOPMENTS White Paper on Proxies? On June 18, in a hearing before the House Financial Services Committee, CFPB Director Cordray announced that later this summer the Bureau will issue a white paper on how it uses the proxy method to determine the presence of discrimination in the indirect auto lending market. He stated that the CFPB discussed at length in a recent webinar with the Federal Reserve its use of U.S. Census data and the Bayesian Improved Surname Geocoding proxy method to determine whether minorities are paying higher rates for auto credit, and that the CFPB and the Federal Reserve were largely in agreement on the methodology employed by the CFPB. FTC Goes After Convenience Fees.

The FTC has announced that a debt collection company, RTB Enterprises, Inc., and Raymond T. Blair, its president and sole shareholder, have agreed to a federal court order prohibiting them from using allegedly deceptive tactics they have been employing to bully English and Spanish-speaking consumers into paying debts and 30 — Independent Dealer — August 2014

unnecessary fees. The FTC claims the defendants violated the FTC Act and the Fair Debt Collection Practices Act by using false and deceptive methods to collect more than $1.3 million in so-called “convenience fees” and “transaction fees” from consumers who authorized payments by telephone.

The defendants allegedly trained their collectors to deceive consumers into believing that payments were not accepted by U.S. mail and that the fees were unavoidable. In some instances, the fees were added to consumers’ accounts without their knowledge or consent, the FTC charged. The FTC also alleged that the defendants’ collectors deceived consumers by falsely claiming to speak for attorneys, falsely threatening to sue consumers who did not pay, and using deceptive schemes to coerce consumers into paying or providing their personal information.

The order imposes a $4 million penalty, which will be partly suspended based on inability to pay once Blair surrenders assets totaling $100,000. The order prohibits Blair and his company from repeating any of the practices alleged in the complaint, and requires them to truthfully disclose information about any fees they charge, and the steps consumers can take to avoid paying.

LITIGATION Lienholder Not Entitled to Deficiency Absent Evidence that it Mailed Notices to Vehicle Owner: A finance company repossessed a vehicle for nonpayment and sued the vehicle owners for a deficiency. The trial court dismissed the case, finding that the finance company had not complied with Iowa’s right-to-cure and intent-to-sell notice requirements. The Court of Appeals

of Iowa affirmed. The appellate court acknowledged that the finance company did not call as a witness the employee responsible for mailing the notices, only loan officers who merely speculated that the notices were mailed. With only the assumption that the notices had been mailed, the appellate court affirmed the trial court’s conclusion that the finance company failed to satisfy its burden of proof that it acted in a commercially reasonable manner in sending the notices. See Citizens Finance Co. v.

Bickford, 2014 Iowa App. LEXIS 534 (Iowa App. May 14, 2014).

Breach of Implied Warranty Claim Requires Allegations that Defect Compromised Vehicle’s Safety, Rendered It Inoperable, or Drastically Reduced Its Mileage Range: A buyer bought a used car that the salesperson told her had been subject to a Certified Quality Inspection and was in great condition.

She claimed the car was advertised as being “CarMax Quality Certified.”

Although she found a generic list of inspected components in the car’s glove box, she claimed that the results of the inspection had been destroyed before her purchase. After numerous problems with the car, she sued the seller for violations of the Consumer Legal Remedies Act, the Unfair Competition Law, and the implied warranty of merchantability under the California Song-Beverly Consumer Warranty Act and for fraud. The seller moved to dismiss the complaint, and the court granted the motion. With regard to the breach of implied warranty claim, the court found that the relevant standard is whether any alleged defect compromised the vehicle’s safety, rendered it Continued on Page 33. www.fiada.com

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31 2014 31— —Independent IndependentDealer Dealer—January — October 2013 www.fiada.com

www.fiada.com August 2014 — Independent Dealer — 31 www.fiada.com

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DIS has spent the past 20 years building solid relationships with the most respected carriers in the industry while at the same time always looking for the most current and innovative options to these established programs.

32 — Independent Dealer — August 2014

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LEGAL UPDATE continued from Page 30.

inoperable, or drastically reduced its mileage range. The court found that the buyer did not allege any facts that would satisfy that standard, but merely listed a number of defects without “sufficient factual specificity [as to] the degree to which these defects implicate the vehicle’s fitness or operability.”

With regard to the CLRA, UCL, and fraud claims alleging affirmative misrepresentations regarding the quality of the car and its inspection and certification and fraudulent omissions concerning the vehicle’s defects and the results of its inspection, the court found that the buyer did not state these claims with sufficient particularity necessary to survive dismissal. See Chulick-Perez v. CarMax Auto Superstores California, LLC, 2014 U.S. Dist. LEXIS 70749 (E.D. Cal. May 20, 2014).

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August 2014 — Independent Dealer — 33 2/24/2014 6:37:29 PM

INDUSTRY NEWS

New York City Bans the Sale of Used Cars With Open Recalls The New York City Department of Consumer Affairs (DCA) announced in late July that they are launching an investigation into all licensed used car dealerships in the metropolitan area regarding the sale of used vehicles with active safety recalls. As the first city in the nation to do so, New York will ban the sale of used vehicles that have unrepaired recalled parts and investigate dealerships based on their policies on the sale of such vehicles DCA Commissioner Julie Menin cites the recordbreaking number of recalls in 2014 as a driving factor behind this decision, saying that “we’re not going to wait for tragic statistics to demand that dealers repair these ticking time bombs.”

The investigation aims to close loopholes in federal law that prohibit the sale of new cars with recalled parts, but fails to ban the sale of used vehicles affected by recalls.

“Consumers shouldn’t have to wait for new legislation, a court battle, or a tragedy, to know the car they bought is safe as required by law,” said Menin.

So far this year, the National Highway Traffic Safety Administration (NHTSA) lists approximately 37.5 million recalled vehicles in the U.S., beating the previous record of 30.8 million in 2004.

The DCA hopes that this investigation of 836 licensed dealerships in the metropolitan area will keep New York roads safer, and spark similar initiatives in cities across the country and in the federal setting.

To find out if your vehicle or a vehicle you intend to purchase has an open recall, enter the VIN into the NHTSA’s searchable database at safecar.gov.

Article reprinted from New York Daily News.

A Little Q&A on Industry Trends NextGear Capital’s Vice President Eric Hurst was interviewed recently offering some interesting insights and opinions on where the industry is headed: With the end of Q1, what are some of the current trends you have noticed within the industry? Volume has generally been pretty strong. Expansion is on a lot of dealer minds so there has been a huge push by a number of smaller to mid-sized dealers to either grow their existing operations or expand into further locations.

What do you foresee for the industry for the rest of the year? I expect to see a little more stabilization. There is an abundance of capital available right now so people are trying to employ that capital. However, one thing that dealers need to guard against is aging inventory. Dealers need to keep their terms in check so that they do not add depreciation to their inventory. Right now, we are seeing more cars being released from their lease terms into the market. As those cars are released, it changes the consumer’s choice. Instead of looking to buy a five to six year old car, the consumer now has the option of a two to three year old car. As a result, dealers run the risk of having their typical five or six year old cars sitting on their lot, depreciating and becoming aged inventory.

In regards to financing, what would be some tips you would offer to dealers to help them balance their financing and cash flow? An appropriate balance between buy-downs and depreciation is critical in the used-car space. If a dealer can keep the buy-down rate similar to the depreciation rate, it will nt be such a big blow if they decide to wholesale the unit in 60, 90 or 100 days. With that said, an influx of cars creates a faster depreciation rate, so dealers have to pay close attention as certain inventory hits the streets.

FIADA Quality Dealer Honored by State Officials Paul Matton, the Chief Operations Officer for Park Auto Mall in Pinellas Park, FL, has received a congratulatory letter from Ken Burke, Clerk of the Circuit Court for Pinellas County. The letter was in reference to the 2014 State Quality Dealer “Degree of Excellence” award presented to Paul by the National Independent Automobile Dealers Association. Among other things, the letter mentions Paul’s dedication to “service to others,” which is exemplified by his acquisition of a Hunter wheel alignment system for his Service Department. Matton and Service Writer Mike Brammer will use the state-ofthe-art Hunter WinAlign system to better to serve the Paul Matton and Mike Brammer. community.

34 — Independent Dealer — August 2014

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DINO MERCURIO President Independent Credit, Inc. West Palm Beach, FL (561) 686-8673

JIM WINTERICK, SR. CHRISTOPHER LEEDOM PHIL RISLEY Senior Vice President Chairman of the Board Secretary Gulfstream Motor Credit AutoMaxx Cars & Credit of Jacksonville Miami, FL Sarasota, FL Jacksonville, FL (305) 253-2335 (941) 309-1111 (904) 616-4074

LISA COMPAGNO Regional Vice President Palm Tree Auto Sales Stuart, FL (772) 288-2099

FRANK FUZY Regional Vice President Century Motors of S. FL Pompano Beach, FL (954) 785-0369

STEVE MARBAIS GEORGE HICKEY Regional Vice President Regional Vice President Marbais Enterprises, Inc. Bond Auto Sales Ocoee, FL Tampa, FL (407) 877-7422 (813) 238-7478

PAUL MATTON Treasurer Park Auto Mall Pinellas Park, FL (727) 639-1112

GOVINDA ROMERO Regional Vice President Autoflex LLC Gainesville, FL (407) 468-9974

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August 2014 — Independent Dealer — 35

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36 — Independent Dealer — August 2014

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